Ever borrowed a loan from digital lenders? How was your experience and what did you take home from that experience?  Well, this week, The Chamwada Report focuses on digital loans,pros and cons and to demystify the entire sector.

Digital lending is on the rise in Kenya. Started about five years ago and has grown in leaps and bounds to see over forty companies join in to share the market stake. Tala and Branch are some of the household names in this sector but many more are steadily coming up.

Zenka loan app is one such company. Founded just about six months ago, but has made inroads into the fin-tech market as explained by Robert Masinde, Zenka chief executive officer.

"What we have done is try to provide access to them (customers) in a way easy and user friendly without the intimidation that they have to go through when they have to get a bank loan," says Masinde.

Zenka app also offers its first time borrowers interest-free loans. This means that those who borrow for the first time will pay back the exact amount borrowed.

Also Read: What kind of loans you can get through digital apps

"We are bringing people who otherwise would have been stuck in the periphery of financial inclusion and migrating them to a position where they can access fiancé in the formal sector by starting them at a level they can manage," adds Masinde.

More than forty-five digital lenders have come on board to share the market stake that has taken the country by storm. It is the new thing, here to stay as stakeholders admit it has bridged a wider gap that existed before. So, why the instant rise in demand?

"What digital lending has done is that it has improved financial inclusion in the latest fin-access survey by FSD Kenya, which reported an increase in financial inclusion," says Phylis Kamau, Corporate finance advocate.

"It means that the people who have not been able to access banking services have now been brought into the formal borrowing industry," she adds.

Click here to know more about ZENKA LOAN APP

On the show, Alex Chamwada talks to other stakeholders like the Central Bank of Kenya, the Kenya Bankers Association, Credit Reference Bureau (CRB) and beneficiaries.

Catch the informative show this Thursday at 8.30pm on KTN News channel- a Chams Media production.

An in-depth article will follow...