Equity Bank has unveiled a real-time overdraft facility that will see borrowers top up to Sh100,000 in a charm offensive against Safaricom’s Fuliza and Faraja products.
The product, according to the insider with detailed knowledge, says it is part of the lender’s move to stir financial inclusivity and boost the conventional market due perceived high level of risk.
Although details of the facility, including specific terms and conditions are yet to be made clear, an insider at the bank revealed to the Star that the plan comes with a flexible repayment plan of up to 30 days.
“The solution allows customers to top up any amount between Sh100 to Sh100,000. Borrowers can opt to repay the borrowed amount before the 30-day term concludes,” the source told the Star.
On the website, the lender assures customers that they can borrow as many times as possible via the bank’s mobile app, Equitel line, or dialing *247#.
It supports transaction completion on both Paybill, Till, and person-to-person.
Equity Bank’s planned credit product mirrors Faraja, a partnership between EDOMx Ltd, a Kenya-based financial technology firm, and Safaricom.
The zero-interest credit service enables customers will to make purchases of between Sh20 and Sh100,000 and complete the payment within 30 days.
Safaricom, which is listed at the Nairobi Securities Exchange (NSE), is expected to enable EDOMx to offer the Faraja service to more than 606,000 businesses on Lipa Na M-PESA at a negotiated facility fee payable by the business.
EDOMx extends credit to businesses on the solution enabling them to receive payments immediately when a customer purchases Faraja.