Understanding the KCB M-PESA Loan Calculator
The KCB M-PESA loan calculator is a valuable tool designed to provide users with a clear understanding of the total cost of borrowing, including all associated fees and charges. By considering the specific fee structure set by KCB M-PESA, the calculator ensures transparency and accuracy in loan calculations.
Fees Considered by the KCB M-PESA Loan Calculator:
- Facility Fee: This is a one-time charge applied to the loan amount. For KCB M-PESA loans, the facility fee is 9.06%, which is inclusive of the 1.5% excise duty imposed by the Kenyan government.
Example Calculation:
Let’s illustrate how the KCB M-PESA loan calculator works with an example:
- Loan Amount: Kshs. 10,000
Calculations:
- Total Facility Fee (Inclusive of Excise Duty) – 9.06%:
- Kshs. 10,000 * 9.06% = Kshs. 906
- Net Amount Disbursed to Borrower:
- Loan Amount – Facility Fee = Kshs. 10,000 – Kshs. 906 = Kshs. 9,094
- Total Repayment Amount:
- Loan Amount + Facility Fee = Kshs. 10,000 + Kshs. 906 = Kshs. 10,906
- Repayment Period:
- The loan is to be repaid within one month.
The KCB M-PESA loan calculator is an essential tool for anyone considering borrowing through the KCB M-PESA platform. By providing clear and detailed calculations, it enables borrowers to make informed decisions and understand the total cost of borrowing upfront.
With transparency and convenience at its core, the KCB M-PESA loan calculator exemplifies the commitment to financial inclusion and empowerment that mobile banking platforms like KCB M-PESA strive to achieve. By putting financial tools directly into the hands of users, these platforms are transforming the way people access and manage credit, ultimately driving economic empowerment and growth.