Kenyans can now access multiple loans through mobile banking at lower interest rates thanks to innovative technology by Okolea.
When Okolea was launched into the Kenyan market in December 2016, the aim was to give SMEs get access to quick affordable loans to enable them run their businesses.
According to the CEO Okolea Mr Peter Muraya, the lowered interest rates are bound to go much lower for individuals who repay their loans promptly.
“For instance if you repay your loan within a day or two, the interest rate is charged at 5 per cent and when you repay within a week it is 8 per cent and two weeks it goes to 11 per cent.” He said adding that 13 per cent interest rate is on a loan that has been repaid in three weeks and 15 per cent in four weeks.
To access these loans, one is expected to download the Okolea app and fill in their details as required.
“You will need to upload pictures on your ID, both the front and the back, your picture, your ID number and your Mpesa history.” Mr Muraya said.
The Firm then goes to search the applicant’s name and details at Credit Reference Bureau, after which a decision will be made to confirm how much the applicant is entitled for in terms of loan.
“The decision is advised by the applicant’s history with the CRB, if for instance they had been listed for failure to repay Sh5000,($50) then it means that we cannot give them a loan that exceeds that, because we do not want to overburden the applicant with the repayment.” He says.
Okolea has several branches spread across the city and its environs. They include Ruaka, Nairobi’s CBD, and Kitengela.
Applicants who fail to repay their money in time risk being listed with the CRB, but before Okolea does the listing, it tries to figure out why the applicant is unable to repay the money.
“We sometimes result to either extending the loan repayment period depending on the reasons given by the client.” Says Mr Muraya.
Okolea’s effort to edge its competitors off the market by often coming up with unique products that add value to their clients’ lifestyles as well as businesses.
Their top five competitors include, Mswhari, Tala, Branch, Timiza and KCB Mpesa.