Kenyans will now easily access credit facilities without having to go through rigorous collateral requirements as is the case with conventional financial institutions.
This follows the launch of a digital credit facility, mostly targeting the youth, by Unique Investors Property (UIP) Limited.
It will focus on offering credit facilities to young people having challenges getting finances from banks.
Speaking on Saturday at United Kenya Club in Nairobi, the company’s Chief Executive Officer Patrick Malika said the UIP Credit App mobile application will enable individuals who have purchased land with the company’s sister firm, UIP Real Estate, access loans hassle-free and conveniently.
This is by ensuring easy application, approval and disbursements of the loans at a turnaround time of only two hours.
Mr Malika said that through the arrangement, young people will now own properties in the country, pointing out that it has been next to impossible for the youth to afford properties in towns or cities as they could not secure loans for lack of collaterals needed by banks.
He said UIP clients will, through the new app, use their title deeds as collateral or security to get loans at 40 percent of the value of the land bought with the company.
“We will give funds to our customers when they want to borrow against the title deeds. The mobile app will save the individuals the agony of lengthy, bureaucratic procedures and requirements of conventional financial institutions for your borrowing needs,” said Mr Malika.
He said the app will list all the properties that a customer has bought with the company and give the client the option of choosing which one to use as a collateral.
The title deed number, phone number and the identification number are uploaded and listed in the customer relationship management system which links to the app through intelligent processes automation. The app system then calculates 40 percent of the price that one bought the land at as the maximum amount of money one can qualify to borrow.
“Upon confirmation, your loan is automatically approved. Disbursement is done immediately the borrower visits our offices, signs transfer documents and a land transfer consent and presents the original tittle deed for safe keeping as collateral to the loan facility. Once the loan is fully repaid, the tittle deed is given back to the customer,” he said.
Mr Malika explained that the interest rates vary between two and six percent depending on the amount borrowed and duration of repayment which are all calculated by the system during application and the customer notified of the cost of the credit through an automatic message to make their final decision on whether to borrow or not.
“We encourage people to borrow to invest and not to consume so as to get revenue back so that you do not struggle repaying the loan. So far, we have been able to reach close to 5,000 Kenyans to acquire land in the last five years we have been in existence,” he said.
The CEO explained that for those who buy land with the company, they are only required to pay 20 percent to show their seriousness and given a whole year to pay the whole amount in instalments after which they are issued with title deeds.