Mwananchi Credit Limited has launched a Loan product for Landlords.

Mwananchi Credit Limited has launched Rental Income Loans to assist house owners in covering unpaid rent by tenants whose earnings have been cut short by Covid-19.

According to Cytonn Investment, the country’s real estate sector would decline this year, with both residential and commercial offices likely to perform poorly.

This is due to consumers’ lower disposable income and oversupply in some markets, such as medium- and high-end residential, commercial office, and retail.

According to a survey conducted by the Kenya National Bureau of Statistics (KNBS) last year, nearly 70% of households are unable to pay their rent.

The credit firm said in a statement that the loan would be backed by the monthly rental income generated by the property collateral.

”A landlord or lady just needs to present a title deed and a sign Rental Agency Assignment Deed. This removes unnecessary encumbrances that complicate the process,” Mwananchi Credit Limited.

According to Mwananchi Credit CEO Dennis Mombo, the new product would provide property owners with a quicker financing line, which is a major win for financial access.

“At Mwananchi Credit, our key focus is providing emergency financing with the greatest level of convenience to the customer. We believe that time is money and all our innovations are structured towards bridging the time gap between client demand for capital and their actual access,’’ Mombo said.

This change comes as the government, through the Ministry of Lands, has been carrying out land digitisation records through the Ardhisasa portal, and is seen as a vote of confidence in the government’s efforts to democratize and make land processing more transparent.

Mwananchi Loans uses an innovative future-earning capacity credit score that qualifies borrowers based on their future expectations and willingness to repay rather than their previous financial history.

Logbook lending, car asset financing, and title deed loans are some of their major loan product lines.