The Central Bank of Kenya launched May 20, 2019 a new loan facility dubbed Stawi app at the popular Gikomba Market, Nairobi where hundreds of medium, small and micro enterprises (MSMEs) operate. According to Dr Patrick Njoroge who is the CBK Governor, the loan scheme aims to make it easy for unbanked business people to access loans through mobile phone banking. The facility is supported by five commercial banks whose CEOs were present at the launch.
All about Stawi loan app
- Stawi app loans is the latest loan app to enter the Kenyan market joining over 50 other applications that have been active for the past few years. The launch of the app today was the pilot phase which will run for two weeks with a target of 3,500 traders. The second phase will target 10,000 traders. The two phases are on a test basis.
- The Stawi loan app will mainly serve the unbanked business people who keep informal records and do not have collateral to secure loans from banks. Most traders in Kenya use their own merchandise and savings to secure loans from informal chamas.
- Traders will access the loans facility via their mobile phone just the way they do with other loan applications. Once your loan is approved, it will be credited to your wallet.
- Stawi app loans will be approved without collateral just like what is offered by the many loan apps around. Here is the catch. Stawi app will approve loans ranging from KES 30,000 – 250,000.
- The repayment period for Stawi app loans is 1 – 12 months.
- The interest per year for Stawi app loans is 9 percent.
- The Stawi app will charge a facility fees of 4 percent, 0.7 percent as insurance fees, and an excise duty of 20 percent of the facility fee.
- You will also incur some expense depending on the mode you use to send your loan repayment, whether by MPESA or direct bank transfer or Pesalink.
- You will be able to request for a top up loan once you have repaid at least 80 percent of your previous loan. Or if you have repaid faithfully for three months.
- The app allows you to view the loan schedule which includes number of payments, repayment dates, principal and interest amount due every month, and outstanding loan amount.
- In case you default on payment, your name will be blacklisted at the Credit Reference Bureau (CRB) hence making it hard for you to access loans from any other lender.
How will Stawi app assess your credit worthiness?
Five banks are behind the Stawi loan app. They are Kenya Commercial Bank (KCB), Cooperative Bank of Kenya, Diamond Trust Bank, Commercial Bank of Africa, and NIC Group. A statement released by the Central Bank of Kenya said that a customer will ‘be scored and advised of their credit limit’. How this will be done is not clear, but since it is a mobile phone loan app, the assumption is that your mobile money transactions history may play a huge role.
Advantages of the Stawi app loans for small traders
With the backing of five major banks and spearheaded by the Central Bank of Kenya, the Stawi app loan appears to have the power to scale faster to thousands of customers across the country. The most attractive thing will be the high amount on offer for credit and the low interest rates, plus the long repayment period. One does not have to have a bank account, collateral, or guarantors, or go through a complex application process.
How to register on Stawi app
- Download Stawi app from Google Playstore.
- Open the app and fill in your details.
- Details include: mobile phone number, ID number or passport number, valid business license, valid email address.
How to reset your Stawi app PIN
- Click on Forgot Password.
- Enter the details you provided during registration.
- Enter your preferred PIN
- Click Next
- A 4 digit password will be sent to the mobile number you provided.
- Click Verify to complete the PIN reset
- You will be redirected to the log in screen where you can now log in to your account using the new PIN.
Image: CBK Governor Patrick Njoroge addresses traders at Gikomba Credit: @CBKKenya
Kindly note that the contact address on this website is for Moshek Africa and has got nothing to do with Stawi App.