Okolea Loan app introduces loan-to-bank option to shun mobile money transaction capping

Okolea, a Kenyan loan app has launched loan-to-bank feature that will enable customers to deposit their loans direct to their bank accounts.

The app, which enjoys over 300,000 users says the development will help to synchronise the financial sector for inclusivity and do away with capping in mobile money industry.

“Okolea loan app is renowned as a Kenyan credit enterprise that has been on the forefront of providing instant loans to Kenyans to cater to both business and personal financial needs. This has seen the app become a leading player in the market due to its responsible lending culture and sizable limits to its diverse clientele,” said the company in a statement sent to newsrooms.

Previously Okolea customers could only get their loans sent to their Mpesa wallets, capping the amount to Ksh250,000.

“We created the banking option to solve this problem on top of giving our customers more choice regarding where they would want to receive their money. This is particularly useful to business people who use cheques to pay suppliers,” says Okolea CEO Mr Peter Muraya.

Research by FSD Kenya says about 6.5 million Kenyans are digital borrowers who borrow to meet basic needs as well as replenish stocks in small businesses.

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Previously, Okolea allowed their customers to borrow up to three times but within their assigned limit, a feature meant to encourage customers to only borrow what they need at a time.

“Okolea recognizes responsible lending is key for sustainable growth and launched multiple loans to ensure clients borrow only what they need at a time. This feature has proven popular leading it to be adopted now leading banks and telecoms,” adds Muraya.