This archive report was first published on 13 May 2020.
On May 13, 2020, Mwananchi Credit, a leading asset financing lender, unveiled a facility to support customers adjust their loan repayment terms in light of the disruptions caused by the coronavirus pandemic.
The 'Switch and Save' loan product allows customers serving loans and unable to reach favourable terms with their lenders to transfer the credit facility to Mwananchi Credit, which takes it up under more favourable terms.
According to Mwananchi Credit CEO Dennis Mombo, the company is offering much-needed relief to borrowers serving loans and in need of more cash.
Customers who switch their loans to Mwananchi Credit will enjoy a 10 per cent cash back on repayments, which is then used to top up their loan repayment. Additionally, 'Switch and Save' customers are allowed to pay back interest only for three months to allow them time to reorganize their finances.
The new product targets borrowers who have been hit by COVID-19 economic disruption after either losing their jobs or having their incomes reduced.
Mwananchi Credit is intervening to reset the secured loans to the original status, charging lower interest than the previous lenders, which gives borrowers not only breathing space but, more importantly, access to more cash.
