Okolea loan app, which provides instant loans to Kenyans to cater to both business and personal financial needs, has launched a direct-to-bank option that will see borrower’s cash credited to their accounts.
Okolea customers previously only got their loans sent to their M-Pesa wallets.
With the maximum amount of loan disbursed per person being Sh250,000, the M-Pesa limit cap makes it hard for top Okolea customers to receive their loans seamlessly.
“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.” said Okolea CEO Peter Muraya.
Research by FSD Kenya says about 6.5 million Kenyans are digital borrowers who take loans to meet basic needs as well as replenish stocks in small businesses were the main reasons for digital borrowing.
This shows digital lenders like Okolea have a role to play in deepening financial inclusion in the country.
“Okolea recognises responsible lending is key for sustainable growth and launched multiple loans to ensure clients borrow only what they need at a time. This feature has proven popular leading it to be adopted now leading banks and telecoms,” said Mr Muraya.
Okolea 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.