Ngao Credit Bets on Digital Lending and Physical Branches to Expand Access to Loans

Ngao Credit is combining digital lending with physical branch expansion as it seeks to make financing more accessible to businesses, traders, farmers and salaried professionals across Kenya.

The lender says its strategy involves using technology to simplify access to credit while establishing regional branches that bring financial services closer to customers.

Through its Ngao app, customers can access financing remotely, reducing the need to visit physical offices to initiate loan applications and access services.

The digital strategy is being complemented by the opening of four new satellite branches in Embu, Malindi, Kitale and Machakos under the company’s Ngao Mtaani initiative.

Ngao Credit Country Sales Agency Manager Francis Mwangi said the expansion was informed by the need to eliminate barriers that prevent customers from accessing financing.

“The idea behind this expansion is to reduce the hassles our clients face when travelling long distances to access credit. We want financial services to be easily accessible by bringing our services closer to where our clients work and live,” Mwangi said.

The lender offers local financing, asset financing and import finance, including import duty financing, targeting businesses that require capital to sustain operations, acquire equipment and pursue growth opportunities.

The company is also seeking to reach customers who may find it difficult to qualify for credit from traditional financial institutions.

Mwangi said the lender’s business model focuses on building lasting relationships with customers rather than treating lending as a one-off transaction.

He revealed that referrals account for approximately 70 per cent of Ngao Credit’s KSh1.3 billion loan portfolio, which he attributed to customer confidence and relationships built over time.

“Our focus is to grow businesses and improve livelihoods across the communities we serve. We do not view every business as just a transaction, we build relationships and walk with our clients through different stages of their growth,” he said.

The lender says integrating digital services with physical branches will improve the customer experience, from initial engagement and onboarding to loan disbursement and subsequent support.

Ngao Credit plans to strengthen its presence across Kenya before considering expansion into other markets.