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
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