P2P Lending FAQs

What is Peer to peer (P2P) lending?

A Peer to peer lending platform is a marketplace that connects individuals in need of credit with individuals and institutions willing to lend.

Who can lend on a P2P platform?

Any Kenyan resident, above 18 years of age, with a national ID can lend on the platform. Any non-banking financial company or companies formed under the Kenya Companies Act can also apply to become lenders.

How does P2P lending benefit lenders?

P2P lending helps lenders earn interest on the idle money which otherwise would not earn anything.

Can a borrower become a lender through P2P lending?

To become a lender or investor, you can sign up for free and fill in the basic details about yourself. Your registration will be verified within 12-24 hrs. Once approved, you can log on to your account online and start lending.

What’s the maximum amount and duration for lending?

One can start with a minimum amount of Ksh. 5,000 per loan. The platform has a database of borrowers. Loan duration is restricted to between 7 – 30 days.

What is the expected rate of return?

Lenders can expect returns in the range of 10 – 20 percent, depending on who’s guaranteeing the loan. Returns also depend on the ongoing demand for lenders on the platform

Can a borrower negotiate for a lower interest rate or longer duration?

Yes, a borrower can request the lender to reduce the interest rates or increase the loan duration. However, the interest rate and duration should not go below or higher than the ones recommended by the platform.

What is the maximum amount a borrower can get?

An individual can lend a maximum of Ksh. 50,000 at a go

Can I control the returns from my investment?

You can control the returns by spreading the investment across borrowers at different loan amounts and rates of interest. You can also increase your returns by referring credible borrowers so that most of your cash remains in circulation at all times.

What happens in case of delayed or non-payment by borrowers?›

In case of any default, additional penal interest will be applied to the due amount for the duration of delay which borrower (s) will be liable to pay to their lender(s) via the platform.

If the platform guarantees the loan, then the lender will still get their principal amount in case of non-payment. If the loan was guaranteed by the lender, then the platform won’t be responsible in case of non-payment.

What if I want to Withdraw some or all of my invested funds?

A lender can request part or all of their invested funds by giving the platform a notice of at least 30 days. This is to allow the platform to also notify affected borrower(s) and ask them to pay up all the money owed to the lender.