L-Pesa is an innovative micro-loan service that makes it possible for everyone to gain access to financial services. This service is set to transform the landscape of access to finance, especially for those who find it challenging to gain access to finance from formal institutions. Here are some of the basic finance products that L-Pesa has to offer.
With L-Pesa, gaining access to a loan has never been easier. Loans are at the heart of financial freedom and inclusion. When seeking a loan from a formal financial institution such as a bank, there is an extended process that needs to be followed. This process includes filling out forms with personal information, looking for guarantors, providing collateral and waiting for days to weeks for all the information to be processed. With L-Pesa, the process is much simpler. To begin with, you need to open an L-Pesa account which can be done in minutes. The next thing that you need to do is fill a short form of application, and then wait for approval and receipt of your loan. This is also done within minutes.
The advantage of using this process in comparison to what you would experience in a bank is the savings in time, and complexity. When using L-Pesa, there is no need to fill out long forms, provide collateral or even seek guarantors. Your loan application is 100% private and all the steps can be completed on a mobile device. This opens up the loan application process to all, no matter what their literacy level or location.
Credit Score Benefits
The formal credit score system is complicated, and it is often challenging to find out your credit score in an instant. Furthermore, once your credit score has dropped, it can take years to get it back up. L-Pesa makes the entire credit score system more basic and simple to understand. To begin with, you credit score increases the more loans that you take and repay on time. In the event that you miss payments, or make your payments late, your credit score drops down to zero. However, you are able to build it up again from the next loan that you take, as long as you make your repayments on time. This makes it much easier to get back on firm financial footing.
In addition to offering micro-loans, it is also possible to save funds in your L-Pesa account. Your savings remain totally safe while in your L-Pesa account, and you have the benefit of being able to access them at any time. This makes the entire process of money management much easier, and you will also feel more empowered with your money.
L-Pesa offers an extensive range of services in finance, so that anyone with minimal financial knowledge will understand how they can better manage their money. By cutting down comprehensive and complex processes which many find overwhelming, L-Pesa opens up its market share to anyone with a mobile phone. That is what smart, basic finance is all about.