This archive report was first published on 2 September 2019.
Kenya: Relief for Youth Seeking Loans as New Facility by UIP Launched ¶
On September 2, 2019, Unique Investors Property (UIP) Limited launched a digital credit facility in Kenya, primarily targeting young people who face challenges accessing finances from banks.
The new facility, which is part of the company's efforts to make property ownership more accessible to the youth, will enable individuals who have purchased land with UIP's sister firm, UIP Real Estate, to access loans hassle-free and conveniently.
According to Patrick Malika, the company's Chief Executive Officer, the UIP Credit App mobile application will allow users to apply, approve, and disburse loans within a turnaround time of only two hours.
Mr. Malika explained that the app will list all the properties that a customer has bought with the company and give the client the option of choosing which one to use as collateral. The title deed number, phone number, and identification number are uploaded and listed in the customer relationship management system, which links to the app through intelligent processes automation.
"We will give funds to our customers when they want to borrow against the title deeds. The mobile app will save the individuals the agony of lengthy, bureaucratic procedures and requirements of conventional financial institutions for your borrowing needs," said Mr. Malika.
He added that the interest rates vary between two and six percent depending on the amount borrowed and duration of repayment, which are all calculated by the system during application and the customer notified of the cost of the credit through an automatic message.
Mr. Malika encouraged people to borrow to invest and not to consume, so as to get revenue back and avoid struggling to repay the loan. He noted that the company has been able to reach close to 5,000 Kenyans to acquire land in the last five years they have been in existence.
