Mwananchi Credit Limited has extended the repayment period for loans taken by civil servants and teachers to eight years. The secured credit lender says this is part of efforts to ease the financial burden on this group of borrowers as Covid-19 continues to adversely affect people’s finances.
Civil servants and Teachers Service Commission (TSC) members will now have up to 96 months (eight years) to pay their loans, a major relief from the previous six years (72 months).
Civil servants and teachers access Mwananchi Credit loans through the salary check-off loan. “Civil servants have been the backbone of the nation for decades, contributing to some of the most critical economic sectors,” says Mwananchi Credit Executive Director Dennis Mombo. “Their investment has been responsible for the development of most satellite towns in Kenya.”
Mombo said Mwananchi Credit was exploring more ways to provide relief to its clients, including salary check-off loan buyoffs from other financial institutions. He said the longer repayment period would make civil servants more resilient to coronavirus related economic disruptions.
“Civil servants are vital economic engines in the country, and they have helped make our economy strong. We will continue to provide every business and individual with the most effective response possible during these times of uncertainty.”
Mwananchi Credit, which was recently recognized as the Most Preferred Institution in Logbook Financing for the Year 2020, has tailor-made the salary check-off product for civil servants to enable them to invest in various businesses. The salary check-off loans are available to all civil servants from across the country working in healthcare, education, county governments, and defense forces among others.
No security is required as these loans are given against salaries. Civil servants are eligible to minimum loan of Ksh3,000 and maximum of Ksh2 million depending on the salary scale.
To cushion its customers further, Mombo says Mwananchi Credit has cut interest rates on its various loan facilities to as low as 1.5%. This makes it the lender with the lowest interest rate and longest repayment period in the market.