Digital lenders are now looking to provide customers with loan extensions as well as repayment plans to mitigate the negative impact of COVID-19 on small businesses. Following a consultative meeting in Nairobi, the Digital Lenders Association of Kenya (DLAK) announced a number of measures aimed at addressing the adverse economic and health effects of the COVID-19 pandemic to protect customers with digital loans. The report shows 37 per cent of borrowers reported using digital credit for business, while only seven per cent used it for emergencies. A number of Kenyans may be forced to turn to digital lenders to make ends meet. Customers have also been advised by DLAK to update their scoring models and the method of calculating creditworthiness to include the economic and social impact of COVID-19.

Source: The Star March 20, 2020 13:30 UTC