Lending Rules
Our comprehensive guidelines for responsible lending and borrowing practices
Effective from: August 2, 2025
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1. Overview of Lending Rules
Swift Loan is committed to responsible lending practices that protect both our customers and our business. These rules ensure fair, transparent, and sustainable lending relationships.
Our lending rules are designed to comply with Kenyan financial regulations and international best practices for consumer protection in digital lending.
📋 Important: All borrowers must understand and agree to these rules before receiving any loan from Swift Loan.
2. Borrower Responsibilities
Primary Obligations
- Provide accurate and truthful information during application
- Use loans only for legitimate and legal purposes
- Repay loans within the agreed timeframe
- Maintain active M-Pesa account for transactions
- Notify Swift Loan of any changes in contact information
- Report any disputes or concerns promptly
- Protect loan account credentials and personal information
Communication Requirements
- • Respond to Swift Loan communications within 24 hours
- • Inform us immediately if you cannot make a payment
- • Update contact details when they change
- • Report any suspicious account activity
3. Lending Criteria & Assessment
Swift Loan uses comprehensive criteria to assess loan applications and ensure responsible lending:
Eligibility Factors
- • Age: 18-65 years
- • Kenyan citizenship
- • Valid National ID
- • Active M-Pesa account
- • Smartphone with internet
Assessment Criteria
- • Credit history review
- • Income verification
- • Repayment capacity
- • Previous loan performance
- • Financial behavior patterns
Credit Scoring Process
Our AI-powered credit scoring system evaluates multiple data points to make fair lending decisions:
- Mobile money transaction history
- Credit bureau reports
- Device and app usage patterns
- Employment and income indicators
- Social and economic factors
4. Loan Limits & Progressive Lending
First-Time Borrowers
- • Initial loan limit: KES 1,000 - KES 5,000
- • Must successfully repay first loan to qualify for higher amounts
- • 30-day repayment period for all first loans
- • Enhanced verification requirements
Progressive Loan Increases
| Loan History | Maximum Amount | Requirements |
|---|---|---|
| First Loan | KES 1,000 - 5,000 | Basic eligibility |
| 1 Successful Repayment | KES 15,000 | On-time first payment |
| 3 Successful Repayments | KES 50,000 | Consistent payment history |
| 6+ Successful Repayments | KES 200,000 | Excellent credit profile |
5. Repayment Rules & Procedures
Standard Repayment Terms
- Repayment period: 30 days from loan disbursement
- Monthly interest rate: 0.86% of principal amount
- Grace period: 3 days after due date without penalty
- Accepted payment methods: M-Pesa, bank transfer
- Minimum partial payment: 25% of total amount due
Payment Reminders
Reminder Schedule
- • 7 days before due date - First reminder SMS
- • 3 days before due date - Email and SMS reminder
- • Due date - Final reminder notification
- • 1 day after due date - Overdue notice
- • 7 days overdue - Collection process begins
Early Repayment Benefits
- No penalties for early repayment
- Interest calculated only for days loan was outstanding
- Faster eligibility for higher loan amounts
- Improved credit score and future terms
6. Default Management Procedures
Late Payment Process
Days 1-3: Grace Period
Gentle reminders, no penalties applied
Days 4-14: Late Fees Apply
1% daily penalty on overdue amount
Days 15-30: Active Collection
Direct contact, payment plan negotiation
Day 31+: Credit Bureau Reporting
Negative credit report, potential legal action
Hardship Assistance
Swift Loan understands that financial difficulties can arise. We offer:
- Payment plan restructuring options
- Temporary payment holidays in extreme circumstances
- Financial counseling and budgeting advice
- Referral to debt management services
💡 Important: Contact us immediately if you're facing payment difficulties. Early communication can prevent serious consequences.
7. Prohibited Loan Uses
Swift Loan funds must not be used for the following purposes:
Illegal Activities
- • Drug trafficking or narcotics
- • Money laundering
- • Fraud or scams
- • Tax evasion
- • Any criminal activity
High-Risk Investments
- • Gambling or betting
- • Cryptocurrency speculation
- • Forex trading
- • Ponzi or pyramid schemes
- • Volatile investments
Restricted Purchases
- • Weapons or ammunition
- • Adult entertainment
- • Tobacco products
- • Excessive alcohol
- • Luxury items beyond means
Other Restrictions
- • Lending to third parties
- • Debt consolidation without approval
- • Business ventures without disclosure
- • International transfers
- • Political activities
⚠️ Warning: Using loan funds for prohibited purposes may result in immediate loan recall, account termination, and legal action.
8. Regulatory Compliance
Swift Loan operates in full compliance with Kenyan financial regulations:
Regulatory Framework
- Central Bank of Kenya (CBK) regulations
- Kenya Data Protection Act, 2019
- Consumer Protection Act
- Anti-Money Laundering (AML) requirements
- Know Your Customer (KYC) obligations
- Fair lending practice guidelines
Customer Rights
As a Swift Loan customer, you have the right to:
- • Clear and transparent loan terms
- • Fair treatment throughout the loan process
- • Privacy and data protection
- • Complaint handling and resolution
- • Access to loan information
- • Early repayment without penalties
Reporting and Monitoring
Swift Loan maintains comprehensive records and reporting systems:
- Regular reporting to Central Bank of Kenya
- Credit bureau reporting for all loans
- Transaction monitoring for suspicious activities
- Customer complaint tracking and resolution
- Internal audit and compliance reviews
9. Dispute Resolution Process
Swift Loan is committed to fair and prompt resolution of all customer disputes:
Resolution Steps
Contact Customer Support
email info@swiftloan.ke
Response time: Within 24 hours
Formal Complaint
Submit written complaint if initial contact doesn't resolve issue
Response time: Within 7 days
Management Review
Escalation to senior management for complex disputes
Response time: Within 14 days
External Mediation
Independent mediation or arbitration if needed
Timeline: As per mediator schedule
Common Dispute Types
- Disputed charges or fees
- Incorrect loan calculations
- Technical issues with payments
- Data privacy concerns
- Customer service complaints
- Credit reporting disputes
10. Rule Enforcement & Violations
Swift Loan takes rule violations seriously and may take the following actions:
Violation Categories
Minor Violations
- • Late information updates
- • Minor policy breaches
- • First-time oversights
Action: Warning, education
Serious Violations
- • False information provided
- • Repeated policy breaches
- • Misuse of loan funds
Action: Account restriction, loan recall
Severe Violations
- • Fraudulent activities
- • Illegal use of funds
- • Identity theft
Action: Account termination, legal action
Appeals Process
Customers who disagree with enforcement actions may:
- Submit a formal appeal within 30 days
- Provide supporting documentation
- Request independent review
- Seek external mediation if needed