Switching loan repayments to Kenyan Shillings will shield customers from forex fluctuations
East Africa’s leading asset financier, MOGO, has announced that all loan repayments will now be made exclusively in Kenyan currency as it gears to protect customers from fluctuations in foreign currency exchange rates.
MOGO’s head of car financing Mr Stephen Mwangi noted that the switch provides significant relief for prospective customers by stabilizing their monthly repayments.
This comes as MOGO is currently finalizing the development of a process that will allow its current customers to switch their loan payments to Kenya Shillings.
Mr Mwangi said that with MOGO loans now being repaid “solely” in Kenyan Shillings, customers can better plan their budgets without concerns over the forex stability issues that have previously impacted their payments.
“In the past three months, our customers have already been making repayments in Kenyan Shillings. This adjustment is designed to alleviate the extra burden on customers who have faced higher payments when the shilling weakens against other foreign currencies,” said Mr Mwangi.
The latest development also offers greater convenience, as most customers do not hold accounts in foreign currencies.
“Customers will benefit from building a positive payment history and credit score, which will open doors to additional benefits from MOGO, such as eligibility for loan top-ups, repeat loan offers and increased loan limits,” the head of MOGO’s car financing, said.
MOGO has also abolished application fees and reduced the loan repayment period for car financing and logbook loans from 36 to 24 months, “which has significantly lowered the total interest customers pay for their loans.”
MOGO provides a range of asset financing options, including car financing, car logbook loans, boda boda financing, boda boda logbook loans, tuk-tuk financing, and tuk-tuk logbook loans.
Car, boda boda and tuk-tuk financing assist customers in purchasing vehicles, while car, boda boda and tuk-tuk logbook loans support those who already own vehicles but need funds to meet various financial needs without selling their assets.
Over the past 25 years, MOGO has disbursed Sh20 billion in boda boda and motor vehicle loans, benefiting over 120,000 Kenyans with affordable financial products.
The firm is also focused on financing e-bikes and electric three-wheelers to promote e-mobility adoption in Kenya.
“MOGO has listened to customer and market feedback, especially considering recent economic challenges and the significant depreciation of the Kenyan Shilling against foreign currencies,” said Mr Mwangi adding; “this shift aims to ease payment difficulties and prevent negative impacts on customers’ credit scores.”
This transition will enhance MOGO’s competitive edge in the market and solidify its position as the leading provider of asset financing in Kenya.
“We remain committed to offering the best price guarantee for the products of our customers’ value.”