CBK Gives Digital Borrowers Six Months to Repair Their Credit Standing
Relief to people who have defaulted on digital mobile loans as they are set to be delisted from CRB, and that number is around 4 million (this is the approximate number of people whose names had been forwarded to CRB for not paying their loans by Safaricom).
President Ruto had announced that his administration would see that people who have been listed by the CRB for defaulting their loans will be de-listed from the Bureau, which would then give them a chance to access other credit facilities while working on a plan to furnish their loans.
However, this whole situation of de-listing people did sound sketchy for some people because it failed to answer some questions, such as when such culprits will pay their current loans.
Luckily, the CBK has has made a major announcement on the Credit Repair Framework.
According to the CBK, the framework will improve the credit standing of mobile phone digital borrowers whose loans are non-performing and have been reported to CRB and similar institutions.
Image: Courtesy// Press statement from CBK's official twitter
Nonetheless, the framework is not a permanent one because it will expire on May 31, 2023.
This means that for the next six or more months, the concerned lenders will need to contact their borrowers and give them more details about how they will clear their loans.
One of the suggestions in the framework is that lenders will offer a discount of at least 50 percent of the non-performing digital loans outstanding as of the end of October 2022.
Lenders and borrowers will then enter into a repayment plan that should be completed by the next six months. Once the Framework expires, the credit standing of the borrowers will depend on their repayment performance.