Kenyan President William Ruto on Wednesday launched a 50-billion-Kenyan shilling (about 408 million U.S. dollars) mobile-based loan fund for low-income households.
Ruto said the Financial Inclusion Fund is part of government efforts to boost access to credit for individuals who are locked out of the low-interest loans regime.
He said individuals over the age of 18 will be eligible to borrow between 4 dollars and 408 dollars without the need for collateral, denoting that the kitty comprises four different products, including start-up loans, micro-loans, small and medium enterprise loans and personal loans.
Ruto revealed that beneficiaries of the credit will pay an annual interest rate of eight percent. Approximately eight million Kenyans currently cannot access affordable credit due to their bad credit history, so the loan facility will offer them a second chance. Enditem