Coming as a relief to most Kenyans who have relied on mobile phone app loans that were due sometime this month, Members of the Digital Lenders Association (DLAK) have now agreed to waive the late repayment fees as part of steps taken to cushion customers who are already experiencing hard economic climate over the coronavirus pandemic.
Lenders from android applications such as Zenka, Pesa Flash, Flash Pesa, iPesa amongst others have been charging customers a percentage interest daily on loans that are due. This has been quite a hustle for most Kenyans with some seeing as much as Ksh1000 accrued from interest in just a period of one week.
It is however not clear if these lenders will allow customers to borrow again once they’ve cleared their previous loans. Customers on platforms such as Zenka have been met with ineligibility regret once they had cleared previous loans making it difficult to survive during this period. Others such as Tala are now subjecting customers to up to ten days to have their loan applications approved.
Members of the digital lender’s association said the waiver was aimed at providing customers with a soft landing as slowdown in economy had affected their income.
“Customers are advised to seek more detailed information on the specific aspects of the waiver from their respective providers,” read the statement.
“The move will cushion the customers who are under distress, following the slowdown in the economy after disruptions to their day to day operations that could have had an effect on regular income flow.”
The digital lenders association further pledges support the directive issued by President Uhuru Kenyatta’s on the temporary suspension of listing with the Credit Reference Bureaus (CRB) of any person, Micro, Small and Medium Enterprises (MSMEs) and corporate entities whose loan account falls overdue or is in arrears effective April 1, 2020.
The digital lenders association is composed of 12 founding members among them; Tala, Zenka Finance, Alternative Circle, Stawika Capital, MyCredit, Okolea, LPesa, Kopacent, Four Kings Investment T/A Sotiwa, Mobile Financial Solutions (MFS), Kuwazo Capital, and Finance Plan Ltd, Branch, Vaell, Roamtech solutions, Aspira and MicroMobile.