This is the revolving Soko loan facility which allows the borrower to drawdown, repay and re-draw loans advanced to it of the available capital. The borrower may use or withdraw funds up to the approved SMA Soko loan limit. A number of available credit decreases and increases as with the repayment behavior (behavioral score). The borrower makes payments based only on the amount approved (principal), plus interest. The borrower may repay over time (subject to the weekly minimum payment amount), or in full at any time. Soko loan is a particularly flexible financing tool as it may be drawn by a borrower by way of straightforward loans anytime when the need arises via their mobile phones. Soko plan has the following parameters:
- A maximum amount up to Kes5,000.
- Minimum amount Kes 500
- Loan tenor 1 week.
- Interest is charged on weekly basis (straight line)
- The reactivation fee of 100 per every request.