Mwananchi Credit, a secured loan provider, is offering its members a 10% cash back on loan repayments.
Through a Switch and Save product, customers can effectively manage their loans and reach favourable loan terms.
The new product enables customers unable to reach favourable terms with their lenders to transfer the credit facility to Mwananchi Credit, which takes it up under more favourable terms.
“We are coming in to offer the much needed relief to borrowers serving loans and in need of more cash,” says Mwananchi Credit CEO Dennis Mombo.
The 10% cash back on repayments will be used to top up customer loans repayment.
Customers will be allowed to pay back interest only for three months to allow them time to reorganize their finances.
Mr. Mombo said this is in a bid to caution borrowers from the effect of Covid-19 pandemic, following a reduction in income.
The loan provider says its intervention is to reset the secured loans to the original status, charging lower interest than the previous lenders, which gives borrowers not only breathing space but, more importantly, access to more cash.
“We have customized loans on a case by case basis. If, say, a civil servant is serving a Ksh1 million loan and paying Ksh10,000 per month, we can take up the loan and reset it back to Ksh1 million under easy-to-manage terms,” says Mombo.
The CEO said Mwananchi Credit is reaching out to clients to understand their financial situations and find a mutual solution for genuine cases.
“It’s not good to maximize profit on the misfortunes of people like everyone is doing. For us, it’s time to give back to our customers. If we help them today they will support us in future,” added the Mwananchi Credit CEO.
Mwananchi Credit Limited is a leading provider of Logbook Loans in Kenya, offering logbook loans from as low as 2.5% per month with the loans being disbursed within 6 hours.