Kashway is one of the most popular mobile lending apps in Kenya.
To get a loan, you need to download the app and create an account with your details, such as your ID number, and phone number.
You can get a loan of up to Ksh 50, 000 if you don’t default on your repayments.
What Happens When You Default On Your Kashway Loan?
Kashway sends you reminders to repay your loan two or three days before your due date.
If you fail to pay the loan on the due date, you start to automatically incur a 2-percentage charge of the total loan amount per day as a late payment fee.
If left for a long time, the late charge fee can accrue and become unbearable.
Before the CBK crack down on mobile lenders, Kashway could send your details to CRB for negative listing if you failed to repay your loan after the due date.
But after the Central Bank of Kenya reined in the mobile lenders’ abuse of power and lending rates, Kashway cannot do that.
CBK requires that Kashway informs you in writing or through electronic messaging about the CRB listing 30 days before sending your details to CRBs for a negative listing.
Also, when you default on your Kashway loan, it affects your ability to get another loan or an increase in your loan limit.
You also start getting numerous phone calls from Kashway loan recovery agents asking you to repay the loan. Some agents even threaten you with CRB listing and the sale of your assets.
It also looks like they don’t track loan repayments as, according to the reviews on their app, most customers complain that they repay their loans before the due date but still get messages and phone calls to repay their loans.
Kashway Loans Can Be Expensive
The downside to Kashway is that the loans are very expensive. They charge 25 – 36% interest on all loans.
This can be expensive, especially if you take a larger loan.
The repayment period is also short. Initially, you’ll have to repay your loan in 7 days.
If you take multiple loans and repay on time, they extend your repayment period to 14 days.
If you take the loans consistently and repay on time, the period is extended to one month.
A negative listing makes it hard to get loans from other mobile lenders as well as traditional lending institutions like Banks.
So, it’s a good idea to pay your loans before the due date.
You may also want to check: What Happens To Tala Loan Defaulters?