Why Digital Lending is popular in the Kenyan Market

Despite exponential growth in the Kenyan Digital lending market, identifying a credible online lending platform remains a challenge among most households. This is why the Bayes Loans App comes in handy to help individuals and entrepreneurs access loans with ease. Besides managing bills, Bayes customers can access loans straight from their mobile devices.

So, why is digital lending popular in Kenya? Let’s dive into the finer details.

Bottlenecks in digital lending applications by traditional lenders

To qualify for a loan in traditional finance institutions, one has to either line up a few guarantors, present security, and this may be in the form of a logbook, title deed, or any other valuables.

However, in some cases, borrowers have to submit a bank statement to ascertain their financial health.  Unlike tough loan conditions imposed by traditional lenders, the Bayes Loans App simplifies the loan application process.

CRB listing

A report published by the Business Daily, a top-tier Kenyan Business Publication, indicates that slightly over 14 million Kenyans have been blacklisted by Credit Reference Bureau (CRB). Arguably this is a challenge to the lending sector.

Bayes, as one of the key digital lenders in the Kenyan market, we are currently instituting measures aimed at educating our customers on responsible digital credit. The strategy is meant to dissuade prospects from getting saddled with unnecessary debts that they are unable to service.

Fast approval

Unlike bank loans that take time to be processed, digital lending applications offer quick loans.  All you need is download an app from the play store, install it on your device, register, and request a loan. The Bayes loan app approves applications in minutes.  However, the loan processing period varies from one platform to another.

Time-saving

Rather than waste time either calling a bank or spending hours queuing to request a loan, you can opt for quick digital loans to cater to your immediate needs. Simply, download the Bayes Loans App on your smartphone, register, and request a loan. In order to increase your loan limit on most digital loan platforms, you must adhere to the stipulated loan repayment schedule. In the event you are an entrepreneur hoping to expand your business through digital credit, then you must always repay loans in time, this helps unlock a high loan limit in the future.digital lending
Flexible repayment schedule as a key factor in the growth of digital lending in Kenya

The impressive aspect of digital lending is the flexible repayment schedule. Contrary to Bank loans that may easily subject you to auctioneers, most digital lenders in Kenya have a flexible customer support.  In addition, you can always contact your digital lender to negotiate a convenient repayment schedule that favors your financial ability. The model applies to Bayes customers who can easily renegotiate their loan schedule to suit their financial status.

Scale and manage cash flow

Through a study conducted by Geopol on behalf of Kenya’s Digital Lenders Association (DLAK), the common parameter that makes mobile loans appealing to most traders is fast access without paperwork. Nevertheless, the untimeliness in accessing the lending platforms makes digital lending more attractive to borrowers.

What does this portend? Borrowers can access mobile loans any time straight from their mobile devices. During the survey,83% of lenders expressed high satisfaction with digital lending platforms. The survey further indicated that slightly over 53% of traders who borrowed digital loans used the amount to purchase goods, while another 19% used the money to cater for emergencies.

The impressive aspect of the Geopols findings is that close to 84% of entrepreneurs who borrowed mobile loans experienced growth in their business. In comparison, over 45% of the digital borrowers indicated that they might not use any other alternative ways of borrowing safe for mobile lending. This demonstrates how crucial digital lending has become among Kenyans.

Final thoughts

Digital lending is a perfect alternative to traditional finance players. In case you have been locked out from borrowing in traditional finance institutions for various reasons, then it’s high time you try out digital loans.

Besides quick and easier access, digital lending offers a perfect opportunity for borrowers to access credit at the comfort of their homes. A product of Pi Capital Ltd, the Bayes app helps you borrow and manage your finances straight from your mobile phone.   

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