Mauritius-based Cim Financial Services Ltd. has launched a one stop mobile app “Aspira” for product financing for assets such as furniture, phones, and electronics amongst others. The app which will be available on IOS and Android mobile platforms will allow usersto apply for credit, get instant credit information, retailer information, loan status, payment updates amongst others.
Cim Finance is the largest non-bank financial institution in Mauritius, with over 250,000 active clients and lends 12bn KES yearly via product financing in Mauritius, and has setup a Kenyan office to bring affordable access to product financing to Kenya. They hope to grow the business over the next few years leveraging a fintech business solution.
With a maximum simple interest rate of 4 percent per month on the financing and a loan range of up to Sh350,000 for first-time customers, the application will give user access to a wide variety of goods from different retail partners. “Our pilot in the Kenyan market,which started last year,has been very successful and we can attribute this to the growing economy, market potential, high technology usage and demand for credit,” said Cim MD (Kenya) Yoeal Haile at the launch ceremony. “We have successfully rolled out this model in Mauritius and based on the fact that the product is tailored for the Kenyan market through extensive research,we are sure that Kenyans will benefit immensely. We plan to invest several billion into the venture over the next few years, a clear indication of the level of confidence we have in the success of the project.”
Users will need to download the app from the App Store or Google Play, supply all the relevant information including name, date of birth, current work status, income. Other verification documents include bank statements, Payslips, MPESA statements among others. They will then get an instant decision and credit limit. They can then visit their retailer of choice and pay a minimum deposit of 30 percent. The goods become instantly available to them as the payment is disbursed directly to the retailer. Customers can choose to pay over 3, 6,9 or 12 months using the Aspira, Pesalink or Mpesa option to make monthly payments.
“We are excited to partner with CIM Finance to bring a game-changing financing to the Kenyan market, enabling a wider range of consumers to be able to purchase quality household appliances and electronics from the Hotpoint retail stores.” Keval Kanani– Director, Hotpoint Appliances Ltd
To ensure we provide great customer experiences while managing risk smartly, we have partnered with TransUnion to provide us with innovative scoring and verification solutions. This also helps us make quick decisions on loan applications with good turnaround times. All the loans will also be insured to cover repayments in case of death or permanent disability. “To encourage responsible borrowing, subscribers can only take financing for one product at a time. The benefit is that for the next purchase they will not be required to pay a deposit and they will also enjoy a lower interest rate and higher credit limit,” concluded Mr. Haile.
The test pilot was done in Nairobi with a roll-out expected in Kisumu and Mombasa before the end of the year.