Consequently, CreditHela has automated this and ensured manual loan processing brick and mortar solution are not compatible and hence in line with COVID 19 guidelines. Cedit Hela is a purely market led Loan Solution
CreditHela in responding to the Global pandemic, has developed a one tap solution that instantly disburses the requested loan amount to the borrower's M-Pesa account at a click of button.
It takes just 3 seconds to disburse a loan after system runs through an automated set of rules and over 1000 data points.
In the wake of COVID-19 pandemic, questions have been raised on who will enable companies, undergo digital transformations.
CreditHela has, however, come up with a world class loan product aimed at the ever-growing MSME economy.
For instance, in the past two years, the number of digital loans issued has approximately doubled. Between 2016 and 2018, 86% of the loans taken by Kenyans were digital in nature.
This trend continues with traditional players, such as banks with approximately half of the loans issued being digital.
Essential services are highly prioritized and offered loans minimal rules as compared to other sector of economy.
For most borrowers, digital credit is an important additional tool to manage business and consumption expenses. Customers appreciate the convenience and immediacy of the product.
This also explains why despite the fairly high interest rates associated with digital credit, the product still sees an increasing demand.
Providers seek to drive product knowledge through regular marketing and communications. However, low-income and women customers in particular rely heavily on peer networks for information and use them to guide their decisions.
CreditHela notes that borrowers engage on loan stacking, with studies showing that multiple borrowing is common, locally with 62% of borrowers having more than one digital loan in Kenya.
This could reflect the low loan limits that fail to fulfill needs and the short tenures that increase pressure on repayment and require a new loan to repay the previous one.
Also Read: Why CreditHela has Embraced Risk-based Pricing.