Standard Chartered Bank Kenya is preparing to launch its mobile lending platform, SC Juza, which is expected to offer short-term loans at a relatively lower interest rate compared to its rivals. The platform will charge an interest rate of 6.58% for loans disbursed through its mobile lending platform, making it cheaper than the rates charged by its competitors, KCB M-Pesa and M-Shwari, for 30-day loans.
SC Juza will offer loans ranging from KES 1,000 to KES 100,000 per week, with a processing fee of 5.5% and an interest rate of 1.08% per month. The platform will also charge an additional service fee of 5.5% for loans that are not repaid within the first 30 days.
StanChart CEO, Kariuki Ngari, stated that the SC Juza App is currently undergoing a trial period before it is rolled out in the market, in response to the high demand for short-term loans by households and small businesses. The bank aims to test the platform for at least four to six months before launching it in the market.
SC Juza’s rollout had been delayed due to new data privacy policies introduced by Google late last year. However, the platform is now ready for launch, and it is expected to complement the bank’s strategy and heavy investments in digital banking, which aims to enhance efficiencies through the expansion of online services while reducing brick-and-mortar operations. The bank is also hinting at a possible rollout of a mobile lending platform targeted at SMEs.