Stawi is a mobile loan product managed by five banks geared at financing SMEs unable to access loans due to unfavorable terms.
The banks are Cooperative Bank of Kenya Limited, Diamond Trust Bank Limited (DTB), Commercial Bank of Africa Limited (CBA), NIC Group PLC, and KCB Bank (Kenya) Limited.
This loan product will focus on small-to-midsize enterprises (SMEs) by giving them credit. The service will be easier to access than other bank loans as it can be accessed on mobile through an application.
Stawi will be offering unsecured loan products to SMEs ranging from Sh30,000 up to Sh250,000. The repayment range of the loans will be 1-12 months at an interest rate of nine percent per annum.
Other fees that will be incurred from using Stawi loan products include 4 per cent facility fee upon disbursement of loan, insurance fees of 0.7 per cent of the disbursed loan, and 20 per cent of the facility fee will be charged as exercise duty.
Stawi is only for SMEs with a monthly turnover of 30,000- 250,000 shillings pic.twitter.com/uIknzmn3uy
— Francis Waithaka 💙 (@waithash) May 20, 2019
The loan product also assures customers of top-up functionality once a consumer repays 80 per cent of the borrowed loan. This also applies when a consumer has a good repayment record of three months.
These banks have joined an active field of mobile money lending with competitors such as TALA, Okash and Branch and it will be interesting to see how banks fair on in a field they had avoided for a long time.