Equity Bank bigger loan is now giving its users a which is payable over a longer period. The loan called the Easy PlusLoan is to be paid through the recently launched Equitel mobile phone service and will heavily target the Small and Medium Businesses (SMEs)
Borrowers can now receive up to Sh3 million to be repaid in a year. Previously ceiling for the loans was Sh200,000 repaid in a month. The bank increasing its use of the mobile platform to further distribute loans to SMEs, a key segment of its market.
“We believe that in the next few years Equitel will do five more times the number of transactions than all other channels put together,” said Equity Group Holdings Chief Executive Officer James Mwangi at the group’s Annual General Meeting (AGM) held in Nairobi.
Equitel had 1.7 million customers in 2015 who transacted Sh115 billion. At the same time the value of Equitel loans stood at Sh8.5 billion. Mwangi added that the increased use of Equitel to access credit will benefit users since the loan repayment rate through the mobile platform is better than other channels.
According to Mr. Mwangi the bank can significantly reduce the cost of borrowing for our customers through the use of the mobile phone.
Serious competitors include mobile phone service companies led by Safaricoms with its ubiquitous M-Pesa and other banks that have partnered with mobile service companies to reach more banking service users.