Aspira Kenya will now offer education loans to parents on its platform which will be capped at 500,000 and offered at a monthly interest of two percent.
The product financing firm in a statement Wednesday said the minimum amount that will be advanced under the facility dubbed “Soma Education Loan” will be Sh10,000.
At two percent interest per month, the interest is lower than most digital loans from banks and annualised M-Shwari charges of 108 percent.
“Getting timely access to cash should not be a problem especially when it affects the welfare and future of your child,” Cim Group CEO Mark van Beuningen said in a statement Wednesday.
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“Aspira’s school fees financing loan capped at Sh500,000 with an interest rate of 2 percent by Aspira is bridging that gap by empowering parents in terms of fees so that our children can stay in school and learn.”
The facility will be available to its existing customers as well as onboarded clients.
The loan will cover all learning needs of children right from kindergarten to primary, secondary schools, training institutions and universities.
“We spoke to many parents in the country about their Christmas holiday plans, and realized that while planning for the holidays, they’re more worried about the January school fees season. This challenged us to devise this education loan solution to assist them pay their children’s school fees hassle-free,” Mr van Beuningen added.