L-Pesa set to transform financial inclusion in Kenya
In the third quarter of 2016, the Central Bank of Kenya has approved the services of microloan provider L-Pesa. This innovative platform is set to transform financial inclusion in Kenya, by making it possible for any registered mobile phone user to access microloans for their personal and professional development. L-Pesa services make it possible for anyone to apply for a loan, without enduring the lengthy process that is common in traditional financial institutions.
Applying and receiving a loan with L-Pesa can take minutes, compared to days and weeks that many people are more accustomed to. There are no long forms to fill. Rather, an applicant follows a one-step application process using their mobile device, and when approved, the funds are deposited directly into the users account.
L-Pesa is progressive in nature as the amount one can borrow is able to increase over time. This is due to the modern credit score system, where a borrower is rewarded with points every time they pay back a loan on time. The starting loan amount in L-Pesa is $5, but as long as the loan is paid back in time, and in the right installments, it is possible to borrow up to $3000 on this platform.
The services of L-Pesa are available in numerous countries around the world, and the approval of the Central Bank of Kenya means that millions of people in the country can look forward to more financial opportunities. Financial inclusion is a reality in Kenya now, due to the services available from L-Pesa.