Mogo, a financial services provider, has announced a cut in monthly payments for both its car financing and logbook loans, aimed at assisting Kenyans in navigating difficult economic times. Effective immediately, monthly payments for car financing will be reduced by 30%, while logbook loan payments will see a reduction of 5%.
Mogo has eliminated application and processing fees for car financing loans and the abolishment of application fees for logbook loans.
The reductions aim to alleviate financial burdens for Kenyans by enabling them to address various needs, such as injecting more capital into their businesses, paying school fees, covering medical bills, renovating their houses, undertaking construction projects, and buying a car.
Customers can apply online for logbook loans of up to 80% 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 AI, Mogo 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% of the car’s value. However, we offer a loan of 80% of the car value. With our car financing option, customers only need a 20% 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.”
