KCB has raised the borrowing limit for small loans on its mobile lending platform by up to 40 per cent, Joshua Oigara, the banks Chief Executive, said on Wednesday. The increase is to apply to individuals borrowing up to Sh1,500, a segment that comprises the largest percentage on the platform.
“All customers who have been good payers on KCB M-Pesa are getting their borrowing limit increased by 40 per cent, up to a limit of Sh1,500. Fifty-seven per cent of our customers are borrowing below Sh1,000 and 40 per cent of the borrowers taking loans below Sh500,”said Mr. Oigara.
KCB M-Pesa has signed up seven million customers since its launch in March last year and according to Mr Oigara it handles 30,000 loan applications daily, disbursing an average of Sh50 million a day. Since its launch, the platform has issued loans totalling Sh12 billion.
The platform has opened an opportunity to a large section of business owners who previously could not access banks credit facilities. Individuals normally have own caps developed according to repayment habits. The upper borrowing limit remains Sh100,000.