Mshwari is a mobile loan facility offered jointly by Safaricom and NCBA bank. Kenyans who may need money for emergency purposes as well as investment needs, since there are those who get over Ksh 50,000. The money hits the Mpesa account of the borrower within less than two minutes.
Mshwari has been using the same interest rate across all its customers. However, according to Business Daily, Safaricom and NCBA are drafting a risk rating model that will allow them to charge different interest rates depending on the risk nature of the borrowers. Those who have defaulted earlier will be charged a higher rate.
The facility wants to adopt the model of commercial banks where a risk margin is added to cover default. The firm revealed that it has collected enough data on its customers to now risk-base price them. Those clients who defaulted earlier will now be punished for that going forward. As the saying goes, you will reap what you planted.
Courtesy: Business Daily
Content created and supplied by: ActiveDisc (via Opera News )
Opera News is a free to use platform and the views and opinions expressed herein are solely those of the author and do not represent, reflect or express the views of Opera News. Any/all written content and images displayed are provided by the blogger/author, appear herein as submitted by the blogger/author and are unedited by Opera News. Opera News does not consent to nor does it condone the posting of any content that violates the rights (including the copyrights) of any third party, nor content that may malign, inter alia, any religion, ethnic group, organization, gender, company, or individual. Opera News furthermore does not condone the use of our platform for the purposes encouraging/endorsing hate speech, violation of human rights and/or utterances of a defamatory nature. If the content contained herein violates any of your rights, including those of copyright, and/or violates any the above mentioned factors, you are requested to immediately notify us using via the following email address operanews-external(at)opera.com and/or report the article using the available reporting functionality built into our Platform See More