Connect with us


CBK to avail low-interest loans to micro, SME traders – KBC




The Central Bank of Kenya in partnership with five commercial banks are set to avail low-interest loans to micro, small and medium enterprise traders on mobile phones.

This will be through the mobile-based credit scheme dubbed Stawi targeting at least 13,000 traders in the first round.

CBK Governor Dr Patrick Njoroge says the new product aims at improving credit access among MSMEs with the 9 per cent interest.

The Stawi mobile loan product launched today in Gikomba market, Nairobi brings together KCB, Cooperative Bank, Commercial Bank of Africa, Diamond Trust Bank and NIC Group.

Get breaking news on your Mobile as-it-happens. SMS ‘NEWS’ to 22163

Under the deal, micro, small and medium enterprise traders will have access loans on their Stawi mobile applications and then credited to their mobile wallets.

Stawi offers unsecured loan products ranging from KSh30,000up to KSh250,000 with repayment periods of 1 to12 month at an interest of 9% annually.

Customers will be scored and advised of their credit limit.

Traders will similarly be able top-up their loans once 80% of the loan borrowed has been repaid or track record of three months’ repayment.

The pilot phase targets 3,500 traders in the MSME sector. The second phase of roll-out targets 10,000 traders, who will have been registered by Stawi agents.


Tell Us What You Think

Source link