Tala, Mobile Lenders Waive Late Repayment Fees over Coronavirus

Mobile lenders have today agreed to waive the late repayment fees as part of the measures to support customers during this time of the COVID-19 outbreak.

In a statement to newsrooms today, the association said the move will cushion customers who are under distress, following the slowdown in the economy after disruptions to their day to day operations that could have had an effect on regular income flow. Customers are advised to seek more detailed information on the specific aspects of the waiver from their respective providers.

“We support the Presidents’ directive on the temporary suspension of the listing with Credit Reference Bureaus (CRB) of any person, Micro, Small and Medium Enterprises (MSMEs) and corporate entities whose loan account falls overdue or is in arrears, effective 1st April 2020,” read part of the statement.

This comes barely three days after Tala launched Ksh 605MillionCOVID-19 Rebuild Fund to help bolster Kenyan businesses and communities. The Fund, which Tala plans to grow through additional funding and partnerships, will prioritize existing Tala customers as well as Tala businesses that provide essential services to their communities.

Eligible customers will be invited to apply for the Fund’s first new product, a 0% fee, 6-month Community Support Loan of Ksh. 30,000, designed to support businesses that are helping Kenyans recover and rebuild.

“We believe small businesses are the backbone of the Kenyan economy. Businesses, and business owners, who provide essential goods and services to their broader communities will help Kenyans survive this crisis and will be on the front lines leading efforts to rebuild,” said Ivan Mbowa, General Manager, Tala Kenya. “We want to give those businesses the ability to get a head start in helping communities recover and rebound. That’s why we are offering select business owners 0% fee Community Support Loans with extended tenures.”