Egyptian based fintech startup, kashat, has launched an Android app offering short term loans between EGP 100 (USD 6.33) and EGP 1,500 (~$95)
Kashat is designed for the unbanked segment of Egypt and aims to help users cultivate a financial identity by providing them with instant credit.
Users can sign up on the app using their national ID card, a selfie of themselves, and by answering a few questions in the registration form to disclose their details. The users are then provided with a limit (which goes up to EGP 1,500) if their profile is approved.
According to Sumair Farooqui, the co-founder and CEO of Kashat, “We’ve worked very hard to put it together. Our launch programs over the course of the upcoming year will enable us to work towards delivering a completely frictionless experience. Egypt being a high growth market is well poised to roll out truly inclusive financial services and we are hopeful that our proposition (Kashat) will help contribute to the joint industry pursuit of a cashless society.”
Kashat allows users to pay back the loans in 61 days over two equal monthly installments. The app charges an annual percentage rate (APR) between 16 to 28 percent depending on the loan amount from the borrowers and also deducts a flat fee of EGP 8 in form of processing fees from total limit amount at the time of disbursing the loan.
The app, just like traditional financial institutions is also required to report their delinquent customers to the country’s credit bureau. If a user fails to pay their loan back to Kashat, they run the chance of damaging their credit standing with other future lenders. It also charges a late fee of EGP 3 per week with a maximum cumulative late fee of EGP 24 over 8 weeks for all loan amounts.
Credit: menabytes
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