Mwananchi Credit offered to refinance distressed logbook and car loans being provided by other lenders. This move is aimed at stabilizing the logbook and car loan market whose sustainability is being threated by mass defaults across the industry.
Under the new proposed arrangement, borrowers whose loans are falling behind schedule, and whose lenders are unwilling to discuss favourable restructuring terms can turn to Mwananchi Credit who will buy off the distressed loans under better terms. This might even result in the borrowers getting a loan top up should the new refinancing terms create room for the same after valuation and analysis is done.
Mwananchi Credit’s CEO Dennis Mombo said, “The current economic times have become tough due to the Covid-19 pandemic which has resulted in an unprecedented amount of car loan borrowers from most institutions falling behind their payment terms. This has even affected our own clients at Mwananchi but we have resorted to discussing and restructuring all loans with our clients and even waiving penalties. We now wish to extend that olive branch to other borrowers as well.”
Mwananchi Credit has made bold moves to cushion its lenders during this Covid-19 pandemic. It continued lending even when other lenders slowed down, brought down interest rates and restructured struggling loans and waived 100% of penalties accrued during the Covid-19 period, all in an effort to ensure a healthy loan book and happy clients.
Mwananchi is also the only logbook lender currently actively practicing risk-based lending model where clients who provide proof of non-default are given friendlier interest rates and higher facility ceilings.
Mwananchi Credit is one of the leading logbook loan providers in the country. Its diversified product portfolio includes title deed loans, civil servant salary check off loans, import financing and asset financing, among others.
