This archive report was first published on 8 May 2020.
On May 8, 2020, Mwananchi Credit introduced a new loan product aimed at providing relief to customers struggling with their loans.
The Switch and Save loan product enables customers to transfer their credit facility to Mwananchi Credit, which takes it up under more favourable terms.
According to Mwananchi Credit CEO Dennis Mombo, the company is committed to helping customers cope with the economic crisis. 'We are coming in to offer the much-needed relief to borrowers serving loans and in need of more cash,' Mombo said.
Customers who switch their loans to Mwananchi Credit will enjoy a 10% cashback on repayments, which is then used to top up repayment of their loan. Additionally, customers are allowed to pay back interest only for three months to allow them time to reorganize their finances.
Unlike other credit providers, Mwananchi Credit intervenes by resetting the credit facility to the original loans and charges lower interest than the previous lenders. This gives borrowers not only breathing space but, more importantly, access to more cash.
As Mombo explained, 'We are customizing all loans. If, say, a civil servant is servicing a Ksh1 million loan and paying Ksh30,000 per month, we can take up the loan and reset it back to Ksh1 million under easy-to-manage terms.'
Mwananchi Credit is not repossessing cars used to secure loans, but instead reaching out to clients to understand their financial situations and find a mutual solution for genuine cases.
