NewsDigital Lender to Offer Grants to Loyal Customers

Digital Lender to Offer Grants to Loyal Customers

-

- Advertisment -spot_img
  • Digital money lending platform, Tala, is set to start issuing grants to its customers as a way of encouraging them to repay their loans on time.

    The grants will be targeted to those running Micro, Small and Medium Enterprises (MSME) to help them restock their businesses as well as those who have been on the platform for over three years and have a good record of loan repayment.

    Speaking to kenyagist.com, Tala Country Growth Manager, Annstella Mumbi, noted that listing defaulters on CRB is not a good enough incentive to make customers repay their loans.

    Over Ksh 37 billion fake currency seized on May 4, 2021.
    Twitter

    “CRB does reduce the incentive for some customers to repay, and that is the challenge. However, I think there are ways that the industry, digital lenders and other lenders especially banks, can work with the regulators to figure out what is the middle ground is,” stated Mumbi.

    She added that the grants will range from Ksh10,000 to Ksh100,000 and that they will be directed to MSMEs in different sectors of the economy.

    “Currently, MSMEs form 60 per cent of our borrower base and through our research and observations, we found that this was the segment that had been most adversely affected by Covid-19. Most businesses had shut down or experienced a large reduction in sales revenue. As such, we asked customers what they needed most in terms of support from us and the Jijenge na Tala business grant program was born,†she told kenyagist.com.

    The pilot has already seen 30 companies benefit from the non-refundable grants and free business skills training at inception and is expected to continue growing into 2022.

    A recently released barometer report by the Digital Lenders Association of Kenya (DLAK) indicated that more than half of the credit taken goes to business advancement.

    Education and emergency followed closely as the top three priority reasons why Kenyans takes credit from digital platform.

    “With the economy bouncing back, we are feeling extremely optimistic about the future, just being able to reach a lot more Kenyans,” added Mumbi.

    The advent of digital lending has opened the country’s credit sector bringing on board millions of unbanked Kenyans an upward trend that Mumbi says needs to be incentivized so as to avoid undoing all the good that has been achieved.

    “Fintechs will continue to revolutionize the market through thinking of new and unique ways of leveraging tech to reach more people.”

    Currently, over 16 million Kenyans are actively involved in the credit market, with more than half taking their credit from digital platforms. 

    Nairobi residents pictured at Kenya National Archives section of Nairobi CBD
    Nairobi residents pictured at Kenya National Archives section of Nairobi CBD.
    Twitter
  • Source: KENYAGIST.COM

    LEAVE A REPLY

    Please enter your comment!
    Please enter your name here

    This site uses Akismet to reduce spam. Learn how your comment data is processed.

    Latest news

    Was ist eine toxische on-off-beziehung?

    Was ist eine toxische on-off-beziehung?What is a toxische on-off-beziehung? a toxische on-off-beziehung is a type of relationship where one...

    Ex-Govt Official in Ksh1.3 Billion Scandal Hospitalised After Court Release

    Former Nairobi Provincial Commissioner Davis Nathan Chelogoi is set to receive ongoing medical treatment at a hospital in the...

    Raila Allies Pile Pressure on Ruto as Talks Hit Dead End

    National Assembly Minority Leader Opiyo Wandayi, a close ally of opposition leader Raila Odinga and a senior member of...

    'They’re Jealous of Me', Nakhumicha Over Recent Criticism

    Cabinet Secretary (CS) for Health Susan Nakhumicha has strongly condemned the individuals criticising her over allegations of underperformance within...
    - Advertisement -spot_imgspot_img

    Court Orders City Lawyer Behind Ksh 283M Scam to Refund Loot

    The High Court on Thursday ordered a Nairobi lawyer to refund Ksh25 million he is accused of obtaining fraudulently. While...

    How to Buy Cryptocurrency with M-Pesa in Kenya: A Step-by-Step Guide on Binance

    Are you a Kenyan interested in purchasing cryptocurrencies using M-Pesa? Although direct purchases of cryptocurrencies via M-Pesa are currently...

    Must read

    Was ist eine toxische on-off-beziehung?

    Was ist eine toxische on-off-beziehung?What is a toxische on-off-beziehung?...

    Ex-Govt Official in Ksh1.3 Billion Scandal Hospitalised After Court Release

    Former Nairobi Provincial Commissioner Davis Nathan Chelogoi is set...
    - Advertisement -spot_imgspot_img

    You might also likeRELATED
    Recommended to you