OKash mobile app increases loan repayment period to 365 days maximum as interest rates shoot down to meagre 3pc

OKash mobile money lending app which was in a recent survey rated the third most popular digital mobile app in Kenya slightly behind Tala and Branch, has sought to broaden its market reach by employing user-frendly strategies aimed at netting the every-growing digital borrowers.

One of these strategies by OKash, will see its loan repayment period go up significantly allowing borrowers more time to service their loans and thus little chances of ending to CRBs as a result of defaulting.

While OKash had before recently pegged all of its loan-repayment period between 15, 22 and 30 days, the app borrowers will now choose between 61-day and 365-day term to repay their loans.

This comes at a time when the revered Opera-owned company has also declared  a major reduction on all loans' monthly interest rates to a meagre 3% which translates to 36% per annum, a first among firsts in the digital mobile money lending apps in Kenya.

Users applying for OKash loan that ranges between Sh2,000 and Sh50,000 will have them proportionately processed at a fee ranging between Sh100 and Sh600, which is a one time charge.

This move by OKash has come at a time when Google Play Store has launched a crackdown to get rid from its platform what it has termed as 'predatory mobile loan apps' which mostly demands that borrowers pay a certain amount of 'fee' before they can access loans.

In a detailed Explainer soon, 254 NewsDay Business will expound what this historical move by OKash which has too been replicated by her sister company, OPesa, means for the Kenyan digital borrower and the entire digital lending sector.