Secured loans provider Mwananchi Credit has waived penalties on loan defaults to reduce the repayment burden for borrowers. The company says the upto 100% fee waiver will cushion customers from the adverse financial effects of the Covid-19 pandemic currently ravaging the country, pushing many households into the red.
Most Kenyans have either lost their jobs or are contending with reduced incomes due to the economic slowdown caused by the outbreak of Coronavirus in Kenya, forcing most companies to scale down their operations.
“With this in mind, Mwananchi Credit Limited would like to announce a 100% penalty waiver to all its clients since the pandemic started in March this year,” says Mwananchi Credit Director Dennis Mombo.
Mr Mombo asked customers with financial challenges making it difficult for them to comfortably service their loans to come out and have their situations addressed.
“If you are experiencing financial difficulties, either due to a drop in income or an outright job loss, the best thing to do is to reach out to us and let us know your circumstances,” he added. “Unlike other competitors, we don’t charge penalties on default payments. We are flexible when a customer is more proactive.”
Mwananchi Credit Ltd offers an array of credit solutions including LPO financing, salary advance loans, cheque discounting, logbook loans, weekend loans and loans secured by titled deeds, among others.
Mr Mombo advised borrowers to reach out and discuss their financial situations instead of waiting for the company to look for them. Mwananchi Credit Limited says it is offering temporary relief to consumers on loan payments through programs aimed at assisting clients.
He said Mwananchi Credit understands that these are challenging and uncertain times and is offering guidance to individual customers and small businesses experiencing shifts in their financial stability.
“We are working directly with customers on a case-by-case basis to address their needs, and we are currently providing assistance, including fee waivers and payment deferrals,” he said. “We understand that there may be instances where customers find themselves facing financial difficulties.”
In March, soon after the pandemic was announced, Mwananchi Credit introduced interest-free loans for new customers and rebates for existing borrowers to ease the burdens of credit on Kenyans who are suffering the effects of a partial quarantine imposed by the government to reduce the spread of the highly infectious virus.