NIC Bank has introduced mobile loans for its users. This means that customers can now access the insanely popular service via the lender’s mobile app or USSD at the comfort of the homes similar to what the competition has done for the better part of the year.
According to the bank, mobile loans must be repaid 30 days after disbursal. This is a short time, but not entirely strange as this appears to be the standard for a majority of mobile loan products. Absa Group’s Timiza and Opera’s Okash, among many other microloan apps limit repayment periods to a month.
The loans will be subject to a 1.13% interest rate that is also equal to an annual rate of 13.56%. It should be noted that those requesting loans via USSD will be charged a 4% service charge that will be deducted from the disbursed funds. What is more, a PIN code is required to authenticate a loan requested via USSD, which the bank can reset if you can’t remember it (you can reach them at 0711041111).
At the moment, the lender says that customers can only access a maximum of KES 70,000 for a month. However, the number can go up once the product grows.
NIC now joins the likes of Absa, Family bank and HF Group that have joined the race pushing loan services to mobile owing to their popularity and high returns.