Equity Bank has launched a new product that allows subscribers access higher loan amounts that are payable over a longer period through the Equitel mobile platform. With Equitel’s Eazzy Plus Loan, customers can borrow up to Ksh3 million payable within 12 months up.
Previously users could borrow up to Ksh200,000 repayable in 30 days. The move is a response to the growing use of Equitel for accessing loans by the bank’s customers. “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 CEO Dr James Mwangi at the group’s 12 Annual General Meeting (AGM) that was held in Nairobi.
The bank recently said that 78 per cent of all loans are now accessed through the Equitel service. 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.
Dr 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.”
