In recent times, many Kenyans have been receiving messages encouraging them to take loans via Clemvi Loans. The loans are marketed through a simple USSD code: *329*22#, which users can dial to access loan services directly on their mobile phones, powered by M-Pesa. As mobile money platforms continue to grow in Kenya, making financial services more accessible, it is no surprise that numerous new loan providers are emerging. However, with the rise in online and mobile-based lending, it is crucial to remain cautious, as scams targeting unsuspecting customers have also grown.
In this article, we will explore the Clemvi Loans service, its registration with M-Pesa, and the company behind it, Imarisha Microfinance. Additionally, we’ll discuss important considerations for consumers before taking loans via new platforms and provide a summary of notable, genuine loan apps that are currently available in Kenya.
What Are Clemvi Loans?
Clemvi Loans are part of a new breed of financial services that provide loans to Kenyans through USSD and SMS platforms. The service is accessible by dialing the code *329*22# on your mobile phone, and it’s integrated with M-Pesa, which is the most popular mobile money platform in Kenya. Once you dial the code, you may receive an SMS prompting you to apply for a loan, and depending on your eligibility, funds could be disbursed almost instantly.
It’s worth noting that Clemvi Loans is a relatively new entrant to the mobile loan market in Kenya, and as with any new service, it’s important to proceed with caution.
Who is Behind Clemvi Loans?
Despite the growing popularity of Clemvi Loans, many Kenyans who have tried to dial the USSD code have found that the service is registered under a different name: Imarisha Microfinance.
Imarisha Microfinance is a licensed financial institution in Kenya, and its involvement in the Clemvi Loans service has raised some questions. While this may seem legitimate at first glance, there are several key things to consider before using the service:
- The Loan Terms and Interest Rates: Before accepting a loan, always read the fine print. Loan services provided via USSD codes can sometimes have higher-than-expected interest rates or hidden fees that might catch borrowers by surprise.
- Lack of Transparency: One concern raised by customers is the lack of detailed information available about the loan service. While some loan apps provide clear guidelines on loan amounts, repayment schedules, and interest rates, Clemvi Loans lacks such transparency, which could lead to misunderstandings and disputes.
- Regulation and Licensing: Ensure that any lending service you engage with is licensed by the Central Bank of Kenya (CBK) and is part of the Digital Lenders Association of Kenya (DLAK). Although Imarisha Microfinance is licensed, it’s still essential to verify the legitimacy of the Clemvi loan service through official channels.
Scams in the Mobile Loan Industry: Be Aware
While M-Pesa and other mobile payment platforms have revolutionized the way Kenyans access financial services, they have also opened doors for scammers. Mobile loan scams are particularly concerning because they prey on the unknowing, often targeting low-income earners and people with limited access to traditional banking services.
Common red flags of mobile loan scams include:
- Unsolicited SMS: Be suspicious of any unsolicited SMS or USSD codes offering loans that you didn’t apply for. Scammers often send messages promising fast, easy loans that come with huge fees and interest rates.
- No Physical Address or Customer Service: If the loan provider doesn’t have a visible physical office or doesn’t offer clear communication channels like customer support lines or emails, this is a huge warning sign.
- Overly Generous Loan Terms: Be wary of loan services offering very high loan amounts with low interest rates or no collateral. If something seems too good to be true, it often is.
Before applying for a loan via Clemvi Loans, ensure that you’ve verified the company’s legitimacy and have read all the terms and conditions.
How to Safely Take Online Loans in Kenya
Here are some tips for safely taking loans via online platforms and USSD codes in Kenya:
- Do Your Research: Before borrowing from any new platform, check online reviews, ask friends or family about their experiences, and ensure that the service is licensed by the CBK.
- Check for Registration: Confirm that the loan provider is registered with the Central Bank of Kenya and is listed under Digital Lenders Association of Kenya (DLAK). This ensures they comply with the regulations set by the CBK, including fair lending practices.
- Read the Terms and Conditions: Understand all the terms and conditions of the loan, including the interest rate, repayment period, penalties for late payments, and any hidden charges. Transparency is key in avoiding future disputes.
- Don’t Share Sensitive Information: Never share personal information like your PIN, ID number, or M-Pesa credentials unless you are absolutely sure that the loan service is legitimate. Scammers often use phishing tactics to collect sensitive data.
- Limit Borrowing to What You Need: Only borrow what you can afford to repay within the stipulated period. Taking out more than you can handle could lead to financial strain and more debt.
Summary Table: Notable Genuine Loan Apps in Kenya
While Clemvi Loans may be a new player in the mobile loan market, it is important to be cautious when taking loans via USSD or SMS. Below is a table of notable and well-established genuine loan apps in Kenya that are known for their transparency, good customer service, and regulatory compliance.
| Loan App | Registration/License | Maximum Loan Amount | Repayment Period | Interest Rates |
|---|---|---|---|---|
| M-Shwari | Licensed by CBK, partnered with Safaricom | KSh 200,000 | 1 month to 6 months | 7.5% per month (on reducing balance) |
| KCB M-Pesa | Licensed by CBK, partnered with Safaricom | KSh 1,000,000 | 1 month to 12 months | 1.16% per month (on reducing balance) |
| Branch | Registered with DLAK | KSh 70,000 | 3 months to 12 months | 13% – 25% per annum |
| Ayo | Licensed by CBK, part of MTN | KSh 50,000 | 14 days to 30 days | 15% per month |
| Tala | Registered with DLAK, partnered with Safaricom | KSh 30,000 | 21 days to 6 months | 11% – 15% per month |
| Zenka | Registered with CBK and DLAK | KSh 30,000 | 1 day to 30 days | 15% – 36% per month |
Conclusion
As mobile loans become an increasingly popular means of accessing credit in Kenya, the emergence of new platforms like Clemvi Loans can be both an opportunity and a risk. While Clemvi Loans might be connected to a licensed financial institution (Imarisha Microfinance), the lack of transparency and clarity around the service is a red flag.
Before using any new lending platform, always conduct thorough research, check for licensing with the Central Bank of Kenya (CBK), and ensure you understand the full terms and conditions of the loan. Stick to established, well-known platforms that have a proven track record of customer satisfaction and regulatory compliance.
By being cautious and informed, you can avoid falling victim to scams and ensure that your borrowing experience is both safe and beneficial.
Let me know if you need further information or have any questions!