Monday, September 28, 2020

What Happens If You Overpay Digital Loans

    September 28, 2020   No comments

Branch International app

There are many loan apps now providing fast loans to smartphone owners in Kenya.

Most of the digital lenders (apps) provide short term loans with an average of 30 days as the time before a loan matures. The minimum loan tenure is 1 day and the maximum is 1 year.

The majority of the loan apps have Mpesa Paybill Numbers where borrowers can easily pay through when the repayment date is due.

But what happens if one overpays a loan? Different loan apps handle this case differently.

If you pay more than what you were supposed to pay as loan plus the required interest, some apps will keep your balance and use it to repay your next loan. This is what is popular with many of the digital lenders including Branch  International.

Some apps however will refund the excess money after a certain time period. This is the case with KashWay.

So, there's no one single answer to what will happen to your money after paying excess money during loan repayment. Just read the terms of use for each digital lender before proceeding.

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Mwabaya Katana

About Mwabaya Katana

Mwabaya Katana is a Finance Online Researcher and Writer.He is the founder of 'Loans Kenya' Blog.

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