It is no secret that there exists a love/hate relationship towards loan apps. On one hand, they come in handy during emergency situations while on the other hand, they are a nightmare if one fails to repay their loans on time.
There have been countless ordeals narrated by unfortunate victims who for one reason or the other had to undergo the consequences of non-remittance dealt to them by their creditors.
However, the blame of default does not necessarily lie entirely with the borrower, but also partly with the lender.
For one, most lenders charge abnormal interest rates on small loans and secondly, their repayment durations are usually not very accommodative.
It is for this reasons that on August 2019, Google issued a ban on all loan apps offering repayment periods of less than 61 days terming them as ‘deceptive’ and ‘exploitative’
Over the next few months, loan apps would alter their Google Playstore app description pages to read ‘favorable’ repayment terms like 60-day, 90-day or even 365 in a bid to show compliance to Google’s directive.
However, in reality nothing changed.
To the few apps that attempted, did so deceptively. Such apps include Okash and Opesa.
Initially, Okash offered repayment periods of 14, 21 and 30 days at interest rates ranging from 14-16% while Opesa offered almost the same considering their operations are almost identical.
This was later changed to include a 90-day period plan albeit from a preset amount. This meant that one would need to reach a certain loan limit before they could implement the 90-day repayment plan.
However, this option only lasted until recently when Okash and Opesa once again revamped their loan apps to contain a two-month installment plan.
This plan has Okash offering Ksh2,500 as the minimum amount while Opesa offers Ksh3,000 as the minimum borrowing amount.
If you submit a loan application via Okash for Ksh2,500, you will receive Ksh2,105 since Okash deducts interest upfront before disbursing the balance to MPESA.
In a normal scenario, for a 2-month installment on the same amount, one would be required to make equal amounts of Ksh1,447.5 per month for 2 months which would bring the total repayment amount to Ksh2,895.
However, according to Okash, you are required to pay almost the full amount on the 1st installment as shown below.
This is a frustration shared across different users going by the user reviews available on their Playstore page.