Digital lenders unveil measures to guide sector during coronavirus crisis
The Digital Lenders Association of Kenya (DLAK) has unveiled a raft of measures to address the impending adverse economic effects of the Covid-19 pandemic to millions of customers with digital loans.
The members have also been asked to adjust the offers by considering the need to ensure the liquidity of households and microbusiness entrepreneurs suffering temporary, negative effects of the epidemic, such as payment holdup or delayed salary. This will take effect in the next 14 days.
The measures include lenders to take every measure necessary to facilitate the repayment process by providing their customers with debt collection procedures as smooth and as frictionless as possible, supported by a variety of customised tools including loan extensions and/or repayment plans and schedules.
Further, lenders will enable the applications, justifications and documentation collection in an electronically and formalised way and reply without delay, considering the applicants’ situations and current and foreseeable economic circumstances.
The measures by DLAK will take effect within the next seven days.
The loan institutions will be guided by the special circumstances and ethical principles of responsible lending while examining the applications.
“As we continue to monitor the implementation of these measures and the evolving nature of the Covid-19, we are calling for solidarity in counteracting the adverse effects of the epidemic. We appreciate that the global pandemic is increasingly worrisome, and our thoughts are very much with the health and well-being of our colleagues, clients and their families as valued members of our extended community,” said DLAK in a statement.
“We assure you that we have the best practice business continuity processes in place, and we remain open and fully available to our clients and colleagues during this time.”