By Simon Muli
A Google form with instructions on how to apply for loans offered by ‘Waraka LoansKE’
The form states that the lending platform has simplified the online loan application process to make it fast and easy for prospective borrowers to apply for loan facilities.
To be eligible, one must have a valid Kenyan National Identification Number (ID) and must have used mobile money services like Safaricom’s M-Pesa or Airtel Money for more than three months.
The minimum and maximum amount one can borrow is KSh 2,000 and KSh 250,000 respectively, and the loan must be repaid within 12 months. Instructions indicate that notification of the status of a loan application will be given within 15 minutes and if the loan is approved, the loanee will receive cash within 10 minutes.
Clicking the ‘next’ button on the Google form opens a new page with the registration procedure requiring all first-time applicants to pay a fee of KSh 250 in order to be considered for the loans.
The explanation on the form says the fee is used to confirm the credit history of prospective borrowers in order to determine their loan limit. If an applicant does not qualify for a loan, the form adds, the fee is refunded, whereas if it is approved, it will be included in their loan repayments.
Under the instructions is an application form requiring prospective borrowers to fill out personal information such as name, National Identification Number and telephone number, the purpose of the loan and whether or not they have outstanding loans.
The next page shows the loan limit the user qualifies to receive. A paybill number is listed through which they can pay the activation fee and key in transaction details in order to complete the application process.
Verification
Despite the requirement for prospective borrowers to be subscribers of either Safaricom or Airtel mobile money transfer services, the Google form only provides an M-Pesa paybill number to process the activation fee.
Additionally, the M-Pesa paybill number provided, 4026691, is registered under the name ‘ARCADE PREMIERE 1’, and not the name of the organisation — Waraka LoansKE.
Further, while the name of the company issuing the loan facility is Waraka LoansKE, a search on the eCitizen portal did not bring up any results, raising red flags that the company could be fictitious and out to con unsuspecting borrowers out of their money.
Responding to PesaCheck via email, Kevin Mutiso, the chief executive officer of the Digital Lenders Association of Kenya, said all its members are listed on its website. Waraka LoansKE is not among the members.
While nothing compels a digital lender to register with DLAK, the CEO says members who apply to join are subjected to a strict vetting process that includes signing a code of conduct.
“We advise that you report any malicious behaviour by lenders who are purporting to be part of the DLAK ecosystem to the Cybercrimes Unit at the Directorate of Criminal Investigations (DCI),” Mr Mutiso said.
On August 25, the Central Bank of Kenya (CBK) and the Directorate of Criminal Investigations (DCI) issued a joint statement warning members of the public against dealing with unlicensed financial institutions and entities to avoid being defrauded.
Verdict
PesaCheck has looked into the Google form guiding people on how to apply for loans offered by ‘Waraka LoansKE’ and finds it to be a hoax.
This story was produced by PesaCheck in partnership with Code for Africa’s iLAB data journalism programme, with support from Deutsche Welle Akademie.
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