•Those applying shall no longer be required to present Bank Statements or Mpesa statements.
•New move also expected to reduce bureaucracy by cutting down unnecessary paperwork.
Mwananchi Credit Limited has relaxed specific terms to broaden the population that can now qualify for credit under its logbook loans program.
Those applying shall no longer be required to present Bank Statements ( previous six months) and Mpesa statements ( previous three months) as has been previously the case.
According to the micro finance’s CEO Dennis Mombo, majority of those who seek loans from the lender run informal businesses that operate on cash basis and barely service their bank accounts regularly.
"Meanwhile, many of them , in their own ways , manage to save enough to purchase an asset like a car. Whenever they are stuck, they would wish to leverage their assets and access a quick logbook loan,”Mombo said.
Besides broadening the credit access bracket, this new move to relax terms will also reduce bureaucracy in a bid to shorten their turnaround time of credit provision by cutting down unnecessary paperwork, he said.
This will thus positively affect even those who run formal businesses and already have bank statements.
Mwananchi Logbook Loans lending model utilizes an innovative future-earning capacity credit scoring model, that qualifies applicants based on their future plans and ability to repay rather than their past financial history.
The micro finance institution has been previously severally awarded ‘Best Logbook Provider in Kenya” for its innovative approach to lending.
Mwananchi Credit Limited is one of Kenya’s leading non-deposit taking micro finance lending institution, currently with eight branches across the country.