Mwananchi Credit has issued a 100% waiver on default penalties for borrowers to reduce repayment burden.
Loans provider said the default fee waiver is aimed at cushioning its customers from the adverse effects of the Covid-19 pandemic.
The creditor further stated that the virus has pushed many businesses and households into the red.
The company noted that most Kenyans have either lost their jobs or are dealing with reduced incomes due to the economic slowdown occasioned by the virus.
“With this in mind, Mwananchi Credit Limited would like to announce up to 100 percent penalty waiver for all its clients since the pandemic started in March this year,” Mwananchi Credit Director Dennis Mombo said.
In a statement, the director asked customers experiencing challenges repaying their loans to come forward and have their situation addressed by the company.
“If you have experienced a drop in income or an outright job loss, the best thing to do is to reach out to us and let us know your circumstances,” Mombo said.
“Unlike other competitors, we don’t charge penalties on defaulted payments. We are flexible when a customer is more proactive,” he added.
The company offers a wide array of credit solutions including logbook loans, weekend loans, LPO financing, and cheque discounting among others.
The creditor also asked its borrowers to share their financial situation instead of seating back waiting for the company to intervene.
Through the waiver, the company will offer temporary relief to its consumers on loan repayment through various programs.
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The creditor said it understands the challenging and uncertain times and will give guidance to customers and small businesses experiencing cash flow problems.
“We are working directly with customers on a case-by-case basis to address their needs, and we are currently providing fee waivers and payment deferrals,” Mombo said.