Friday , 15 December 2017

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POSTBANK , AAR PARTNERS TO OFFER LOANS TO CUSTOMERS

Post bank has entered a strategic business partnership with AAR Credit Services Limited that will see over 1.7 Million of it’s customers access credit services.
Terming the venture as the first one after a century of operation, the Bank’s Managing Director, Dr. Nyambura Koigi, said the venture comes in the wake of demands by customers for the service.
“In the limited period that the service has been on pilot in our branches, we have seen the loan portfolio grow in leaps and bounds, a clear demonstration and affirmation that the need for credit services by Postbank customers cannot be gainsaid.” said Dr. Koigi.
The piloting program that began with 16 branches last year, has so far reached all the Postbank’s branches and the partnership hopes to see over 1,000 loans disbursed, increase to five folds to reach 5,000 per month by the end of the year.
In a rejoinder Dr. Koigi and the AAR Credit Services Limited Managing Director John Kariuki said that through the partnership customers will experience a more easy repayment loan service,depending on the customers ability to repay.
They said :“ AAR Credit Services Ltd will provide Postbank customers with a reasonably-priced credit facility as a value-added service to the core financial services that Postbank provides. The maximum loans are pegged purely on the customers’ ability to service them.”
The credit facility provides a 2 per cent interest rates and flexible repayment term of up to 24 months including the option to liquidate the loans at any time before maturity without incurring any penalties.
Meanwhile, Dr. Koigi added that the partnership will see the bank enter into the list of commercial banks after the completion of the anticipated review of its legal and regulatory frame work under the Banking Act.
“That we are now able to offer credit services through a third party signifies our drive, commitment and preparedness in the transition to commercial banking, we are waiting for the review of the act by the parliament,” added Dr. Koigi.
While noting that the automated system will make it efficient and faster for Post bank savers to process their loan applications within 48 hours, the AAR MD, termed the venture as a revenue share partnership, however, he said the risks will be catered for by AAR.
“Under the partnership between AAR Credit Services and Postbank, the interest charged on the loans to Postbank savers is shared between Postbank and AAR Credit Services. However AAR Credit Services assumes the credit risk,” said kariuki.
AAR Credit Services Ltd projects to lend over 1 billion shillings to over 20,000 individuals and Small and Medium Enterprises (SMEs) by the end of this year.
Over the years. AAR has diversified its offerings to employee check-off loans, asset financing for low tickets including computers and mobile phones, SME’s among others.

POSTBANK , AAR PARTNERS TO OFFER LOANS TO CUSTOMERS Reviewed by on . Post bank has entered a strategic business partnership with AAR Credit Services Limited that will see over 1.7 Million of it's customers access credit services. Post bank has entered a strategic business partnership with AAR Credit Services Limited that will see over 1.7 Million of it's customers access credit services. Rating:
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