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Equitel increases mobile loan limits through new product

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equitelEquity Bank has launched a new product that will allow subscribers access higher loan amounts that are payable over a longer period through the Equitel mobile platform.

Equitel has launched the “Eazzy Plus Loan” where customers can now borrow up to Sh3 million which is payable within 12 months. This is an upgrade of the Eazzy Loan which allows one to borrow a minimum of Kshs.100-200,000 and payable within a 30 day period.

“We believe that in the next few years Equitel will do five more times the number of transactions than all other channels put together,” said Equity Group’s Chief Executive, James Mwangi.

The move is a response to the growing use of Equitel for accessing loans by the bank’s customers.

“The volume of transactions on digital channels increased significantly with the number of transactions on mobile banking platform Equitel increasing by 1,000 per cent to reach 151 million,” said Equity Group Holdings Chief Executive Officer, Dr. James Mwangi, when he released the Group’s 2015 end of year results.

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The bank recently said that 78 per cent of all loans are now accessed through the Equitel service.

Equitel had 1.7 million customers in 2015 who transacted Sh151 billion, at the same time the value of Equitel loans stood at Sh8.5 billion.

Analysts have in the past said that the bank will increasingly use the mobile platform to further distribute loans to SMEs, a key market for the lender.

“More focus will be given to optimising the newly acquired asset in the Democratic Republic of Congo and developing Equitel. Longer-tenor lending on Equitel and rolling this out to other subsidiaries are part of the plan,” said a banking report by Renaissance Capital.

Other analysts have also hinted that the increased uptake of Equitel will result in the cost of borrowing for consumers similarly reducing.

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