Cooperative Bank Drops Facilitation Fee on Mobile Loans

Cooperative Bank of Kenya (Coopbank) has taken a surprisingly move to drop the most discussed 'facilitation fee' charge on its mobile loan facilities making it the first commercial bank in kenya to take such a move after the interest rate capping law came in force September.


In a statement, the lender said borrowers will also enjoy low interest rates on mobile loans at 1.16% per month.Coopbank mobile loans are accessed through the M-coop app.Borrowers can access up to kes100000 as individuals and kes50000 as business corporates.
M-coop cash app cooperative bank of kenya

Coopbank statement read in part;


We shall not levy any fees or other transactions charges, only interest that is compliant with the new law and pro-rated with the number of months,


Commercial banks offering mobile loan services have been against doing away with facilitation fees on loans since the new banking law came in existence. Such lenders included KCB,CBA and Equity bank.


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