In 2015 Equitel introduced EazzyLoan, a 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 installments 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 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?
The 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.
