Mogo has announced a significant reduction in monthly payments for both its car financing and logbook loans, aimed at assisting Kenyans in navigating difficult economic times.
Effective immediately, car financing monthly payments will be reduced by 30 per cent, while logbook loan payments will see a reduction of five per cent.
The company has eliminated application and processing fees for car financing loans as well as application fees for logbook loans.
Mogo says the reductions aim to alleviate financial burdens for Kenyans by enabling them to comfortably address various goals and needs such as injecting more capital into their businesses, paying school fees, covering medical bills, renovating their houses, or undertaking construction projects, buying a car, among others.
Customers can apply online for logbook loans of up to 80 per cent of their car’s value, ranging from Ksh70,000 to Ksh2,500,000, receive approval within two hours, and access funds on the same day. Leveraging Artificial Intelligence technology, Mogo assesses customers’ creditworthiness and offers flexible repayment terms of up to 36 months.
“The reduced monthly payments for our car financing and logbook loans aim to ease financial pressure on Kenyans and address the tough economic times,” said Mr Stephen Mwangi, Head of Car Financing at Mogo.
“We also aim to provide an affordable loan alternative and address a gap observed in the market, where most non-deposit-taking institutions offer loans ranging between 50-70% of the car’s value. However, we offer a loan of 80% of the car value. With our car financing option, customers only need a 20% down payment to purchase a car that meets their requirements. Mogo’s terms are flexible, transparent, with no hidden charges, and offer a high loan-to-value (LTV) ratio. Furthermore, the loans are not restricted to any particular car model or age.”
In addition, Mogo offers a compassionate approach to customers facing financial difficulties during the loan term. Upon encountering unforeseen circumstances such as job loss, reduced business activity due to decreased purchasing power, or unexpected medical expenses, the firm conducts case-by-case analysis, reaches out to customers to discuss their current financial situation, and guides them about the available options to address their specific financial needs.
“We also encourage Kenyans to utilize our online financial literacy tool to assess their financial health and evaluate their debt-to-income ratio. Additionally, the tool features a blog focused on financial management, offering valuable tips to enhance the financial well-being of Kenyans,” added Mr. Mwangi.
Read: MOGO Launches Financial Literacy Tool For Kenyan Consumers
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