Loan Provider Mogo Slashes Its Monthly Payments

Loans provider, Mogo, has reduced its monthly payments for both its car financing and logbook loans with an aim of assisting Kenyans in navigating difficult economic times. Effective immediately, car financing monthly payments will be reduced by 30 percent, while logbook loan payments will see a reduction of 5 percent.

This follows the elimination of application and processing fees for car financing loans, along with the abolishment of application fees for logbook loans.

With these reductions, Moho aims to alleviate financial burdens for Kenyans by enabling them to comfortable address various goals and needs such as injecting more capital into their businesses, paying school fees, covering medical bills, renovating their houses, or undertaking construction projects, buying a car, among others.

Mogo’s customers can conveniently apply online for logbook loans of up to 80 percent of their car’s value, ranging from KES 70,000 to 2,500,000, receive approval within 2 hours, and access funds on the same day. Leveraging Artificial Intelligence technology, Mogo swiftly assesses customers’ creditworthiness and offers flexible repayment terms of up to 36 months.

“The reduced monthly payments for our car financing and logbook loans aim to ease financial pressure on Kenyans and address the tough economic times,” said Mr. Stephen Mwangi, Head of Car Financing at Mogo.

“We also aim to provide an affordable loan alternative and address a gap observed in the market, where most non-deposit-taking institutions offer loans ranging between 50-70 percent of the car’s value. However, we offer a loan of 80 percent of the car value. With our car financing option, customers only need a 20 percent down-payment to purchase a car that meets their requirements. Mogo’s terms are flexible, transparent, with no hidden charges, and offer a high loan-to-value (LTV) ratio. Furthermore, the loans are not restricted to any particular car model or age.”

In addition, Mogo offers a compassionate approach to customers facing financial difficulties during the loan term. Upon encountering unforeseen circumstances such as job loss, reduced business activity due to decreased purchasing power, or unexpected medical expenses, the firm conducts case-by-case analysis, reaches out to customers to discuss their current financial situation, and guide them about the available options to address their specific financial needs.

“We also encourage Kenyans to utilize our online financial literacy tool to assess their financial health and evaluate their debt-to-income ratio. Additionally, the tool features a blog focused on financial management, offering valuable tips to enhance the financial well-being of Kenyans,” added Mr. Mwangi.

Mogo also boasts of its team of loan specialists who provide complimentary advice to customers, offering tailored financial recommendations based on individual creditworthiness to ensure favourable loan terms and amounts.