Obtaining a loan is a long, draining process for middle and low income earners in Kenya. This is especially the case for members of saving and credit co-operatives, popularly known as SACCOs but thanks to iNuka Pap, a mobile platform that provides members of SACCOs with access to instant loans- things are changing for the better in the country.
One of its kind, this platform seeks to innovate the process of applying for loans for SACCO members by making it simple, straight-forward and easily accessible. Users simply need to register as members of iNuka Pap, the Kenyan Credit Reference Bureau then processes past loan information and automatically generates a credit score.
SACCOs, also known as credit unions in other countries, are financial communities where groups of people come together, pool money to save, and choose when to lend to each other. Although these are beneficial and often act as banks to the unbanked population, members can’t immediately withdraw money in cases of emergency. Obtaining funds from the co-operative often involves a lengthy process.
In a SACCO, net profits are shared between all members in the form of dividends, based on a member’s shareholding percentage.
With iNuka Pap, users can access micro credit on their mobile wallet, which is fully deductible from their salary. Employees can also provide access to insurance for their workers and their families for the equivalent of $0.03 a day. iNuka Pap makes a commission from insurance and earns an interest on the micro loans.
“When people split their savings, it definitely affects their credit ratings with the cooperative, and they can’t get as many loans. With us, they can confidently deposit all of their savings in the cooperative because their backup is iNuka Pap,” explains Waweru Kuria, CEO of iNuka Pap.
iNuka Pap has also been selected as one of the startups that will receive mentorship and support from Barclays Africa in a move to promote innovation and growth in financial services.