Mwananchi Credit, an asset financing lender, has unveiled a new product seeking to assist customers to adjust and effectively their loan repayment terms to avoid straining amid difficult times brought by the Covid-19 pandemic.
Named Switch and Save, the facility enables customers servicing loans elsewhere, and are unable to reach favorable terms with their current lenders, to transfer the credit facility to Mwananchi Credit.
Mwananchi Credit CEO Dennis Mombo said that the lender is aimed at offering much-needed relief to borrowers by enabling them to have more cash and serving their loans simultaneously .
Customers who switch their loans to Mwananchi Credit will enjoy a 10% cashback on repayments, which is then used to top up the repayment of their loans. Further, Switch and Save customers are allowed to pay back interest only for three months to allow them time to reorganize their finances.
Switch and Save is targeting individuals who have lost their jobs or whose income has reduced following the economic disruptions caused by the Covid-19 pandemic.
Consequently, Mwananchi Credit is offering to reset the secured loans to the original status, charging lower interest than the previous lenders, which gives borrowers a breathing space as well as access to more cash. Mombo said that the company has customized loans on a case by case basis in order to be more flexible to attend to the needs of individual customers.
“If, say, a civil servant is serving a Ksh1 million loan and paying Ksh10,000 per month, we can take up the loan and reset it back to Ksh1 million under easy-to-manage terms,” Mombo said.
He added that Mwananchi Credit is reaching out to clients to understand their financial situations and find a mutual solution for genuine cases.
“It’s not good to maximize profit on the misfortunes of people like everyone is doing,” Mombo sais adding that “it’s time to give back to our customers. If we help them today they will support us in the future”