Posted by admin, May 5, 2017

How L-Pesa Microfinance Works

Microfinance provides low-interest loans to people who don’t have access to credit in order to promote entrepreneurship and economic growth. L-Pesa, a leading microfinance institution, operates in slums, neighborhoods and villages that lack typical financial resources and offer people a convenient and reliable way to borrow money.

The microfinance has been very successful in a number of settings. By the end of 2005, over 3,000 MFIs were providing credit to 113 million people, 84% of whom were women.

L-Pesa Microfinance loans are the right solution that many families and small business owners have been looking for. Through L-Pesa microfinance services, many people have gained financial freedom. Families are educating their children, women are feeding their households and more people are starting their own small businesses.

However, it all begins with education and training since these are essential components in the success of any microloan borrower. When people lack education on the various financial products offered by a microfinance institution, it becomes difficult for them to access the services. This short guide will walk you through the steps for setting up an L-Pesa account and applying for a microfinance loan.

Getting started

The registration process is pretty simple and straightforward. Here are the steps you need to follow:

Step 1: Open on your web browser

Step 2: Provide some personal details to create an account with L-Pesa

Applying for a loan

Now that you have completed the registration process, the next step is applying for a loan. If you were to get a loan from a bank, this process would involve filling out a number of forms that you may find tiring and unnecessary. Applying for a loan with L-Pesa is very easy. Follow the steps below:

Step 1: Login into your L-Pesa account with the 4 digit pin code you received with your welcome SMS

Step 2: Click update profile and provide all the information needed and upload fresh documents

Step 3: Go to personal loan and click the green button below Ready for you

You will receive money in your M-Pesa or Tigo Pesa wallet in just 5 minutes

Extra features offered by L-Pesa

  • You can calculate the cost of taking a microloan by using a handy loan calculator on the website. This is makes it easy to make a better decision concerning the type of loan you can afford
  • Choose the loan type and indicate the amount you want to borrow under the product name section. You will then choose currency and calculate your loan.
  • This option will also gives you information about the credit score you will receive after paying back the loan, the period you are required to pay back the loan, the interest rate charged and a further breakdown for the amount you are required to pay weekly and the total amount you’ll pay back.

L-Pesa works to ensure that its customers are getting invaluable financial education. Microloan borrowers can easily calculate the interest and the amount to be paid back so that they can access the next loan. This is important information that L-Pesa customers need to know so that they can easily access loans.

By educating their customers, more people will sign up for L-Pesa services and that means that customers will enjoy financial freedom. There is no doubt that knowledge is indeed power.



3 thoughts on “How L-Pesa Microfinance Works”

Leave a Reply

Your email address will not be published. Required fields are marked *