Jumia Kenya managing director, Sam Chapatte.[Photo/nation.co.ke]
Online shopping portal Jumia has launched a new lending programme that will see small and medium businesses that supply merchandise through their portal obtain loans to expand their businesses.
According to Jumia managing director Sam Chappate, the new program will enable the SME's obtain collateral free loans and will also create a unique scoring method for the vendors selling goods through their website.
“Through this programme, we are offering SMEs new ways to access collateral-free loans quickly,” said Chapatte.
The vendors in the SME's will get the loan by a filling an application form that will be submitted to Jumia for scrutiny after which a feedback on whether one qualifies or not will be sent within 48 hours of application.
“SMEs on Jumia will be able to access credit at favorable terms, with interest rates from as low as 12 percent per year with an approval decision made within 48 hours,” he added.
Chapatte noted that Jumia will award different amounts of the loan to the qualified applicants on the basis of their operational, transactional and behavioral data from the online shop.