Are you in need of money but don’t want to go through the hassle of traditional loans? UbaPesa might be the solution for you.
UbaPesa is a mobile app that provides non-recurring personal loans with a repayment period of 61 to 90 days.
In this article, we’ll take a closer look at how UbaPesa works and what makes it a convenient and accessible way to borrow money.
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Getting Started with UbaPesa
The first step to using UbaPesa is to download the app, which is available on both Android and iOS platforms. Once downloaded, you can register using your Mpesa number.
The app will verify your identity and assess your creditworthiness based on your Mpesa transaction history. If you are approved, you will receive your loan within minutes.
Loan Repayment Terms
UbaPesa offers non-recurring personal loans with a repayment period of 61 to 90 days. This means that you have up to 90 days to repay the loan, and you can do so either in multiple installments or one installment, depending on your capacity.
UbaPesa charges an access fee of 10% on the loan amount. Interest is applicable from the 14th day up to the 60th day, with a maximum interest rate of 15%.
After the 60th day, no more interest is charged. However, a 10% late repayment penalty on the outstanding amount is charged on the 65th day.
No more fees or penalties are charged after the 90th day.
Loan Breakdown Example
To better understand how UbaPesa’s loans work, let’s take a look at an example loan breakdown:
- Borrow Ksh 1000
- Repayment Period 61 – 90 days
- Access fee 10% = Ksh 100
- Interest rate 15% = Ksh 150
- Net Amount = Ksh 885
- Total to Pay = Ksh 1,150
- APR is 90% but not applicable as max period is 90 days
In this example, the borrower will receive Ksh 885 after the access fee is deducted. The total amount to pay back after 90 days is Ksh 1,150, which includes the interest and access fee.
The Advantages of Using UbaPesa
There are several advantages to using UbaPesa to borrow money. First and foremost, UbaPesa is incredibly convenient.
The app can be downloaded and used from anywhere, at any time, making it easy to access emergency funds when you need them.
The loan application process is fast and simple, with loan approval and disbursement happening within minutes. Another advantage of using UbaPesa is that it is accessible to a wide range of people.
Unlike traditional lenders that often require a high credit score and collateral, UbaPesa assesses your creditworthiness based on your Mpesa transaction history.
This means that even people with no credit history or collateral can access loans through UbaPesa.
Finally, UbaPesa’s loans are designed to be flexible and affordable. The repayment period of 61 to 90 days means that you have ample time to repay the loan without feeling burdened.
The interest rate is capped at 15%, making UbaPesa’s loans affordable compared to other lenders in the market.
Conclusion
UbaPesa is a convenient and accessible way to borrow money. Its fast and simple loan application process, coupled with flexible repayment terms and affordable interest rates, make it an attractive option for those in need of emergency funds.
The app’s accessibility to a wide range of people, regardless of their credit score or collateral, further adds to its appeal. While UbaPesa’s loans may be convenient and accessible, they should be used responsibly.
Borrowers should carefully consider their ability to repay the loan before applying, as failure to do so may lead to additional fees and penalties. It is always recommended to borrow only what is necessary and to have a repayment plan in place before taking out a loan.
Overall, UbaPesa’s innovative approach to lending and commitment to affordability and accessibility make it a promising addition to the Kenyan financial market.
For those in need of emergency funds or looking for a more convenient and accessible way to borrow money, UbaPesa is definitely worth considering.