In 2015 Equitel introduced EazzyLoan, a revolutionary product that made it possible for subscribers to instantly borrow 30-day loans of up to Kshs 200,000 via their mobile phones. A year later Equitel rolled out an upgrade on the mobile loan that not only increased the loan amount to Ksh3 million but also introduced flexibility in payments as customers could now pay loans in instalments for up to 12 months.
These mobile loans have proved very popular with the customers which has seen the disbursement of loans through Equitel grow to Kshs 57 billion since its launch in 2015.
The uptake of EazzyLoans has grown exponentially as customers benefit from the convenience that the digital loans afford. The fact that the loans are unsecured, require no paperwork and allow the customer asking for a loan to enjoy the privacy of not divulging their need for the loan to a 3rd party is very liberating. However, with this success has come increased queries on loan limits as customers seek to get higher and higher loans to aid in their economic growth and day to day needs.
What criteria does Equity Bank use to determine the EazzyLoan limit? Why do loan limits keep changing?
First and foremost, Equity Bank uses the power of data and complex algorithms to provide the loans and also determine how much a subscriber can borrow. Factors that can determine how much one can borrow include the customer’s banking activity, review of their credit history, loan facilities with other lenders and their ability to repay.
As such, channelling all incomes into a single Equity Bank account increases the chances of a higher loan limit. Algorithms also look at the borrowing history of the user, both within the bank and those with other lenders. Punctual payment of loans increase chances of higher loan limits while late payment of loans reduces loan limits. Failure to repay loans can result in user details being shared with the Credit and Reference Bureau (CRB) which could halt access to EazzyLoans.
An unknown fact to customers is that EazzyLoan limits are calculated monthly and one can take a maximum of two loans at a time provided that they don’t exceed the monthly limit. This means if e.g. your monthly loan limit is Kshs 20,000 you have the option of taking 2 loans of Kshs 10,000 each or take 1 loan of Kshs 20,000 and so on. Additionally, one is not required to have any minimum amount in their account, at that point of making the application, to qualify for an EazzyLoan.
In summary, pool all your incomes to your Equity Bank account, pay all your EazzyLoans on time, do not divert the EazzyLoan money from the intended purpose for which it was borrowed and avoid over borrowing to reduce the risk of late payment of outstanding loans.
The most convenient aspect of the EazzyLoan is the fact that one can apply for a loan at any time of the day, any day of the week. According to data obtained from Equity Bank, and as shown in the figure below, 36% of approved loans are applied for during post banking hours.
The beauty of the above is that mobile loans especially EazzyLoan that allows a borrower to access up to Kshs 3 million unsecured loan removes the typical obstacles associated with ordinary loans. These obstacles include but not limited to the need to fill in numerous forms, provide collaterals, ask for guarantors, talk to third parties, and be physically present at bank branches more than onces to both apply for the loan and follow up on the loan approval.