We understand that sometimes unexpected situations can make it difficult to repay a loan on time. This section explains what happens if a loan is not repaid by the agreed due date and how it can be resolved.
When Is a Loan Considered in Default?
A loan is considered overdue or in default if repayment is not made by the due date shown on the LendPlus app or Platform.
What Happens If a Loan Becomes Overdue?
If a loan is not repaid on time:
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Late payment interest will continue to apply at the same daily rate as your loan product (0.9%, 1.5%, or 2.2% per day), calculated on the outstanding amount.
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A KES 20 collection fee may be applied for each instance of overdue payment to cover notification costs such as SMS and call reminders.
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We may temporarily limit access to some LendPlus services if the loan remains unpaid.
How We Communicate With You
If your loan becomes overdue, our team may reach out via calls, email or SMS to:
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Let you know your loan is overdue
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Share your updated outstanding balance
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Discuss available repayment or extension options
If a Loan Remains Unpaid
If a loan continues to remain unpaid, recovery or legal action may be taken in line with the loan terms and applicable regulations. Any related costs will be communicated clearly and applied as disclosed.
How to Resolve an Overdue Loan
An overdue loan can be resolved by:
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Paying the full outstanding amount, including applicable interest and fees, or
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Requesting a loan extension, where available and approved, in line with the General Terms and Conditions
Once the loan is fully repaid, your loan agreement is considered complete.
