The economy in colleges is becoming tougher with increased tariffs on goods in the country.
This has forced students in need of cash to acquire simple loans from mobile money applications at the comfort of their hostels.
In fact, one advantage with mobile lending is that the lender will never knock at your door to demand loan repayment.
The culture of invincibility between the lender and borrowers has encouraged increased defaulting.
In addition, forwarding loan defaulters to the Credit Reference Bureau (CRB) has increased the number of defaulters instead of preventing it.
Students have been taking loans from different lenders with the intention of defaulting since their status in the CRB is already dented.
However, KCB-Mpesa mobile loan has been playing the game differently. They keep reminding their customers to repay instead of threatening or blacklisting them.
In fact, KCB-MPesa never cancel a loan limit, but increase the limit of their customers including defaulters and honor it.
The trick in this is that if one has a loan of Sh150 and the limit is increased to Sh1000, he or she will repay the loan to acquire the huge one.
Majority of Maseno students have opted for KCB-MPesa loans due to their ability to remain patient despite increasing their loan limits.
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