M-SHWARI Raises Loan Limits For Clients As Mobile Loans Competition Gets Tougher

In a move that Daily Updates analysts attribute to stiff competition in mobile loans platforms in Kenya, M-Shwari has this week raised loan limits for a number of its customers. The mobile money lending platform, hosted by Safaricom and supported by Commercial Bank of Africa (CBA) was the go-to provider of mobile loans. 

However, the entry of two major market players, Branch and Tala changed the game. The two providers made it easier for Kenyans to get loans even though their interest rates were relatively high.
Ever since Branch and Tala entered the market, numerous apps have surfaced offering the same services. They include Okash, Utunzi and Stawika among other entities.

Credit Reference Bureau

While the money lending apps have resulted in Kenyans getting quick cash in emergencies, they have also given birth to a new evil; CRB.
Most apps give loans for a period of 14-30 days. However, in the event that the client does not pay back in time, they are reported to the credit bureaus a.k.a CRB.
Negative listing on CRB marks the start of silent woes for the client as they will not be able to access loans for a given period.
The client has to get a clearance certificate from any of the reference bureaus, which charge a staggering Ksh 2,200 to acquire approval. You might need to hire an attorney in case you are declared bankrupt.

Banks have also joined the lucrative fintech market to get a slice of the pie that is Kenyans who want credit.
M-Shwari has revised their limits to try and level the playing field with money-lending apps that offer up to Ksh. 50,000 with no collateral.

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