Convenient loan for your electronics
By Our Reporter
In a world that technology is fast changing,any people long to own the newest mobile phone model or the latest smart watch in the market. However, the high prices of some of these electronic devices can be limiting. Worry no more. Lipalater, is a service that enables you to have your device then pay for it at your pace. Eric Muli- CEO, Odyssey Capital Ltd explains how this works.
Tell us more about LipaLater?
Lipa Later is a facility that allows you to buy the electronic you want and pay for it later. It allows you to use and enjoy your electronic as you pay for it in monthly instalments. Better yet, your new electronic will be covered against theft and damage for a whole year!
This makes it easier for you to focus your money on other expenses and not worry about your electronic being stolen or damaged. It also allows you to afford that expensive electronic that you have always desired.
Who is eligible to access the product
Anyone who has access to mobile money, and has proof of income ( 3 months most recent payslips and 6 months mpesa statements which can be accessed at the comfort of your bed. For self-employed individuals, we require their 6 months bank slips
At the moment, there are a number of financial products in the form of soft loans. What would compel a customer opt for Lipalater and not the soft loan from a financial institution?
Conventional products have a lot of bureaucracies that need guarantors and other documents, such a log books, and title deeds. This already limits a 25-30-year-old who has just started on their first job and would like a good electronic selling at an average Sh40,000. Also, this product allows you to walk away with your electronic and pay for it later. Most companies offering such services for soft loans only hand over the electronic to you only when you are done paying.
Nevertheless, we have countrywide reach due to partnerships with our partners, our facility is therefore accessible to everyone.
Who are some of your partners?
Our partners several include Samsung, Oppo, Tecno, Sony and Huawei. We have also partnered with distributors to ensure our clients have access to more electronic brands.
Why the emphasis on facility loans for tech products?
Electronic products are expensive, and most people have to ensure that their basic needs are met first before buying an electronic product, this leaves very little in the pocket to buy an electronic product at the time they need it. Also, a lot of upcoming businesses are in need of electronic devices to either expand capacity or start-off.
What does the customer provide to the company as a guarantee for them to have a gadget such as a phone?
The customer provides us with their 6-month mobile money statements, and 3 months payslips as proof of income
So far, how many customers have used the facility?
We have served thousands of clients. We hope to reach over 200,000 by mid 2018.
And how about the repayment procedure?
A client picks the number of months they would like to pay the loan in. But the standard repayment period is two to 12 months
What is the procedure of applying for the product?
After a client identifies the item/device they want, they simply make their application on lipalater.com and apply for the loan. The process does not need you to visit our offices as everything is done online. After a complete successful application, the client can pick their device after they have paid the upfront cost.
How do you verify that the applicants are financially stable to repay the loan?
For a customer to qualify for Lipa Later, we undertake due diligence on all mobile money transactions courtesy of a software that identifies mobile money expenditure. We also relies on information from credit reference bureaus to check on the credit worthiness of a client.