As the Kenyan economy continues to deteriorate, majority of its citizens find themselves dependent on mobile loans for their sustenance.
While accessing the loans can be said to be a walk in the park, their actual repayment can be at times cumbersome which often lead to loan defaults.
A loan default refers to the inability to make a loan repayment within its due date.
While various lenders have different approaches to such a scenario eg numerous calls accompanied by sms messages from different numbers, calls to contact lists, threats of demand letters and crb blacklisting.
Some go the extra mile and actually penalize borrowers with outstanding loan balances by charging them a fee for each day that they will have defaulted.
Take for an example you take a loan of Ksh 5000 to be due after 30 days. If you will not have made any payment by the 31st day, you will incur a charge of 1% on the principal amount. i.e you will be penalized Ksh 50 per day.
Lets say, you delay for a week that is Ksh 750, a month Ksh 1500, a year Ksh 18,300.
In short, you will have no option but to make repayment earliest as possible to avoid accruing the penalty fees to future un-manageable amounts.
Below, we have some of the mobile lenders who have adopted this strategy and you should think twice before defaulting on their loans.
Opesa is a loan app offered by TK Ltd that offers loans ranging from Ksh 2,000 – Ksh 10,000 at 14 day repayment period.
Opesa loans attract a penalty fee of 2.4% per day as stated in their terms of service which majority of borrowers NEVER bother to read anyway.
Okash is a loan app offered by OneSpot Technology Ltd that offers loans ranging from Ksh 2500 – Ksh 50,000 at 14 and 21 day repayment durations.
Okash loans attract a penalty fee of 2% per day as stated in their Terms of service.
Zenka is a loan app offered by Zenka Finance that offers loans ranging from Ksh 500 to Ksh 20,000 at a period between 1-30 days.
Zenka loans attract a penalty fee of 1% per day as stated in their Terms of service.