Members of the Digital Lenders Association (DLAK), which represents 17 major digital lenders in the Country, have today agreed to waive the late repayment fees as part of the measures to support customers.
2020 has had a significant impact on business including digital lenders, both small and medium entities. Especially for those people who do menial jobs. It will be difficult for them to repay the loans, which are now a source of their livelihood.
Central Bank of Kenya Governor Patrick Njoroge. During a briefing last month, he stated that Digital Lenders and banks should work out repayment plans with their customers. To allow them to repay the loans for up to a year period.
While banks will review requests from borrowers for extension of their loan for a period of up to one year.
The move will cushion the customers who are under distress especially financial. Following the slowdown in the economy after disruptions to their day to day operations that could have affected regular income flow. Digital lenders and banks will allow customers with loans to borrow. However, customers have to seek more detailed information on the specific aspects of the waiver from their respective providers.
The Digital lenders Association also supports the President’s directive on the temporary suspension of the listing with Credit Reference Bureaus (CRB). For any person, Micro, Small and Medium Enterprises (MSMEs) and corporate entities. Whose loan account falls overdue or is in arrears, effective 1st April 2020.