Okolea loan app is one of the mobile loan apps in Kenya that provides instant loans to Kenyans through their mobile phones. The app has a download of 500,000+ at the google apps store indicating how popular the app is. It was developed by Okolea international.
What Are Okolea Loan Limits?
Your loan limit with the Okolea loan app will start small and is reviewed and increased every time you repay your loans on time.
Okolea loans range from Ksh500 to Ksh500,000 all with a maximum repayment period of 1 year.
To start the processing of getting an Okolea Loan, you need to download the Okolea app. You will need to fill in the form giving your details such as names, phone number, ID number, sex, age, etc for your identification purposes.
The app uses algorithms to do an appraisal of your application and you get assigned a loan limit after your account is appraised which allows you to borrow instantly any amount equal or less than their assigned limits.
This loan limit will increase every time you repay the loan within the stipulated timelines.
What Are Okolea Loan Interest Rates?
Okolea loan is repayable with a maximum repayment period of 1 year. The interest is charged daily. This however is not compounded on daily basis but is charged on the outstanding amount.
The daily interest rate is 0.5% or 182.5% per annum. On top of that, the loan has an application fee of 0.4% – 2.5% of the loan applied.
The loan is costly by any measure and we will use an example to demonstrate the true cost of the loan. If you apply for a loan of Ksh1000 on January 1, for a term of 1year, the effective cost of the loan is:
Loan Repayment= Loan principle + Loan interest + Application fee.
Loan Repayment= 1,000 +(1,000×182.5%) + (1,000×2.5%)
Loan Repayment= 1,000 + 1,820 + 250
Total loan repaid= 3,070
Total loan cost= What is repaid-original loan = 3,070-1000 =2,070
In percentage terms =2070/1000 *8
=207%
Therefore the minimum applicable loan cost for the Okolea loan app is 207%. It will even be more costly when the loan amount is higher and it takes longer to repay the loan. This will never be disclosed to you as the consumer.
Do you need Okolea Loan?
This is a question that will vary from individual to individual. These loans are not meant for long-term development but rather should be used for emergency cases and as a stop-gap measure before a permanent solution is obtained. You can use Okolea loan because of the following:
- Instant access to loans. The loans are processed fast and the money will be sent to your M-pesa account in less than 5 minutes. This is helpful in an emergency where cash is needed instantly.
- You can borrow more than 1 loan at a time. Depending on the loan limit awarded to you, you can borrow further as long as you have not exceeded the loan limit. For example, if your loan limit is Ksh10,000 and you have an outstanding loan of Ksh5,000, you do not need to repay what is outstanding for you to access further credit. You can borrow the difference as long as it does not exceed the loan limit.
- The loan app is easy to use. The loan app is simplified and has a user-friendly interface for ease of navigation and application of loans.
After collecting the data, Okolea International Limited uses the collected data for various purposes:
- To provide and maintain the Service.
- To notify you about changes to our Service.
- To allow you to participate in interactive features of our Service when you choose to do so.
- To provide customer care and support.
- To provide analysis or valuable information so that we can improve the Service.
- To monitor the usage of the Service
- To detect, prevent and address technical issues.
How To Repay Okolea Loan
You can repay your loan by dialing the short code *842#. You will be required to enter your Okolea account ID then follow the instructions given.
Which Personal Information Does Okolea Loan App Collect?
For the app to better understand you and appraise you for loan application and processing, it needs to collect some private data about you. The following data is collected when you open an Okolea loan account.
- Personal information, including Names, Phone Numbers, Bank Account info, Email, National ID or Passport number, Sex, Occupation, Physical Address.
- Information stored on your Device, including M-pesa Transaction SMS logs.
- Device information, including the type of mobile device you use, unique device identifiers (for example, your Device’s IMEI or serial number), information about the SIM card used by the Device, mobile network information, your Device’s operating system, and your Device’s location.
- GPS Location to determine the location of your last loan request.
Okolea says they will never share your data with third parties but until robust data protection laws are in place in Kenya, you cannot be sure about sharing your data. Okolea loan app will not list you with CRBs.
Get the Okolea Loan App from the play store here.
How To Contact Okolea Loan App Proprietors
You can get in touch with the company by:
Headquarter Office
Along Limuru Road
P.O. BOX 41316-00100
Nairobi, Kenya
Email: [email protected]
