Firm links loans to borrowers’ bank account

Okolea customers are set to enjoy direct loans into their bank accounts from the loan app.

Okolea customers, previously, could only get their loans sent to their Mpesa wallets. However, MPesa limits the maximum amount of loan disbursed per person to Sh250,000

The firm's CEO Peter Muraya said customers previously limited with the Mpesa cap would find it easier to receive their loans.

"We created the banking option to solve this problem on top of giving our customers more choice regarding where they would want to receive their money. This is particularly useful to business people who use cheques to pay suppliers." Mr Muraya said

The credit enterprise has previously allowed their customers to borrow up to three times, but within their assigned limit, a feature meant to encourage customers to only borrow what they need at a time.

"Okolea recognizes responsible lending is key for sustainable growth and launched multiple loans to ensure clients borrow only what they need at a time," Mr Muraya said.

Mobile loan apps have become popular among Kenyans due to their accessibility, flexibility, and efficiency in granting loans.

Research by Financial Sector Deepening Kenya (FSD Kenya) says about 6.5 million Kenyans are digital borrowers who borrow to meet basic needs as well as replenish stocks in small businesses.

A Market Overview of Mobile Loans in Kenya report by Credit Info last year showed that 74.5 per cent of the borrowers had between 2-6 mobile loans at any given time.

During a press last month, CBK Governor Dr Patrick Njoroge said there are a total of 49 mobile loans companies in the country.