Equity Bank has launched a new product that will allow subscribers access higher loan amounts that are payable over a longer period through the Equitel mobile platform. Equitel has launched the ‘Eazzy Plus Loan’ where customers can now borrow up to Sh3 million which is payable within 12 months.
Previously users could borrow up to Sh200,000 repayable in 30 days. “We believe that in the next few years Equitel will do five more times the number of transactions than all other channels put together,” said Equity Group Holdings Chief Executive Officer James Mwangi at the group’s Annual General Meeting (AGM) that was held in Nairobi on Thursday.
Equitel had 1.7 million customers in 2015 who transacted Sh115 billion. At the same time the value of Equitel loans stood at Sh8.5 billion. Mwangi added that the increased use of Equitel to access credit will benefit users since the loan repayment rate through the mobile platform is better than other channels.
“We can significantly reduce the cost of borrowing for our customers.” Analysts have in the past said that the bank will increasingly use the mobile platform to further distribute loans to SMEs, a key market for the lender. “More focus will be given to optimising the newly-acquired asset in the Democratic Republic of Congo and developing Equitel. Longer-tenor lending on Equitel and rolling this out to other subsidiaries are part of the plan,” said a banking report by Renaissance Capital.