……..The Mobile Money lending Applicacations…………..But, the million-dollar question still begs…….are Kenyan populace overburdening themselves with loans of which they are unable to meet their repayment obligations? What’s pushing most Kenyans into this option of borrowing money from these mobile money lending applications?………

…….Recently, a woman opens up and narrated how she is hooked up to so many mobile money lending applications, where she has accumulated loans that are overburdening her. Hers is a desperate case of how she has slid herself in a hole of debts to meet her daily obligations. She further narrated how she borrows from one mobile money lending application to pay the other……say borrowing from Paul to pay Peter…..and the cycle continues.

This is one case in point in thousands, if not millions of desperate Kenyans of how they are going at any length to borrow money from these mobile money lending applications. The Kenyan peculiar habit of borrowing which is gaining storm is pushing them to do the extraordinary.

But, the million-dollar question still begs…….are Kenyan populace overburdening themselves with loans of which they are unable to meet their repayment obligations? What’s pushing most Kenyans into this option of borrowing money from these mobile money lending applications?

These are questions that are being asked in regard to this mobile money borrowing trends. And, the negative side of it, is that most of these borrowers aren’t meeting their repayment obligations. They are being forced to seek other alternatives…..and, that’s where the idea of signing up to so many mobile money lending applications is coming into the play.

And, in these days of technological advancement innovations these mobile money lending applications are cropping up with each an every passing day each trying to cash in in this mad rush and petite for Kenyans to suck loans.

These mobile money lending application platforms are advertising their offers in each an every media outlet they know will reach millions of Kenyans.

And, for a fact, mobile money based lending has grown tremendously in Kenya. Some estimates put the number of mobile lending platforms at 49.

The new industry is largely unregulated, but, includes major financial players. Major Banks have also joined the fray and are offering instant mobile loans.

Since early 2000, Kenya has been touted as a center of technological innovations from which novel financial offerings have emerged. M- Pesa is a well-known example.

It’s no surprise, therefore, that technology and unregulated lending have developed together so strongly in Kenya.

The digital loan services appear to be bridging the gap for Kenyans who don’t have formal bank accounts, or, whose incomes are not stable enough to borrow from financial institutions. These services have improved access to loans, but, there are questions about whether the poor are being abused in the process.

The speed and ease of access to credit through mobile applications have caused many borrowers to become heavily indebted. Despite their small size, mobile loans are often too expensive. Interest rates are as high as 43 percent and borrowers are charged for the late payments.

The mobile-based lending business model depends on constantly inviting people to borrow.

It’s not clear always clear to customers what they will have to pay in fees and interest rates, or, what other terms they have agreed to.
The model has been accused of making borrowers unknowingly surrender important parts of their personal data to third parties and waive their rights to dignity. There are concerns about how the business model may make people even more vulnerable.

The most prominent is the debt culture that has become a by-product of mobile-based lending; borrowers fall into the trap of living on loans and accumulating bad debts


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