November 20, 2024

Branch Loan App updates on Questions regarding CRB, promotions, withholding tax, security and privacy

Late Repayment and CRB

What will happen if I miss my repayment?

Paying each instalment by its due date allows you to access larger loan sizes. Late repayments will affect your ability to get subsequent or larger loans. If you are very late on your payments, they report to the Credit Reference Bureau (CRB). Negative listing by the CRB may affect your ability to borrow from other lenders. A late interest penalty of 6% can be charged on the outstanding loan repayment amount for some loans.

Can I request to repay my loan at a later date?

Unfortunately, Branch cannot alter your repayment schedule after you’ve received a loan. If you are unable to repay the full amount due, they advise you to start making partial repayments as soon as possible.

What is a credit reference Bureau?

A Credit Reference Bureau (CRB) collects credit information on individuals and can provide your repayment performance data to banks, lenders, and potential employers. CRBs help promote financial inclusion and prevent over indebtedness.

What should I do when I clear my defaulted Loan?

They will update and forward your details to the CRB for clearance. If you wish to acquire a certificate of clearance, kindly check with the CRB within a week of making your repayment.

To which credit reference Bureaus do they report?

They report to Metropol and TransUnion.

How can I get my batch number?

If your account has been cleared with the CRB, please message customer care to receive the batch numbers for Metropol and TransUnion to follow up on your certificate.

Promotions

How do I get a bonus for inviting friends?

Get your unique referral code here and share with as many friends as you’d like. After a friend downloads the app, make sure they enter your code on their Promotions page. Once they repay their first loan, you will receive a bonus. By participating in the referral program you agree to the Branch Referral Program Terms and Conditions.

I’ve been invited by a friend. How do I input a code?

Please advise the person who invited you to Branch to send you their promotion code. Kindly copy the code and paste it in the “Promotions” page, which can be found by navigating to “My Account” on the top right corner of the Branch app. If you were not invited by anyone or you have already repaid your first Branch loan, the code will not be applicable.

Where can I find my invite code?

Go to their app. From there, you can message the person you want to invite. Your friend should then be able to click the link in the message they receive to download the app.

How will I receive my bonus?

Bonuses are automatically deducted from the amount of principal you owe on your next loan. Kindly note that your friends must enter the code on their Promotions page before fully repaying their first loan or you won’t receive your bonus.

How do I check my bonus balance?

You can check your balance on their app. Click on “Review your bonuses” to see your balance for credits received.

Why didn’t I receive a credit for a friend I invited?

In order to receive the credit, kindly ensure that the person you invited registers your code on their account before they finish repaying their first loan.

Rewards

What is the Branch Rewards Account?

This is an account where all cash bonuses and rewards earned on Branch are accumulated until you can access the funds.

Withholding Tax

What is withholding tax?

Withholding tax is the compulsory tax which in line with Kenyan Tax Regulations must be deducted from interest payable on your investment. The amount deducted is remitted to the Kenya Revenue Authority on your behalf.

What is the rate of the withholding tax?

The current rate for withholding tax in Kenya is 15% of earned interest.

How is the withholding tax applied?

Withholding tax is applied to total earned interest on any savings plan. For example, if a user has a KSH100,000 savings account upon which they have earned a KSH1,000 interest, 15% (KSH150) of the KSH1,000 interest will be deducted before the interest is paid to the user’s account. This means that the user will be paid only KSH100,850 upon maturity. The KSh150 will be paid to the Kenya Revenue Authority.

Is the withholding tax only applied to Flexi or Target Savings?

Withholding tax is applied to interest earned on all savings products.

Is withholding tax charged on the principal amount?

No, the withholding tax is only charged on the interest earned. You will still get the full principal amount invested.

Why is this charge being implemented now?

Branch has always remitted withholding tax on all interest paid without deducting the same from their users. However, they have now been mandated to deduct the tax on all interest paid to their users in line with the Kenya Revenue Authority’s regulations.

Security & privacy

Can I trust Branch with my data?

They use world-class data security and encryption techniques to protect the data you share with them. Branch never shares your information with third parties unless it is for dedicated business purposes, such as reporting defaulted loans to authorized credit bureaus. They do not sell your data or credit profile.

What does Branch need my ID?

Branch uses your ID to ensure your account belongs to you, and so that no one else can apply for a loan using your account. They understand that this is very sensitive information and take their customer privacy very seriously. If you have additional concerns, please contact the Branch customer service team.

Why do you need permission for my phone?

Branch uses data from your phone, including your handset details and financial transaction messages to make lending decisions. These data are a crucial part of their decision making process, and allow them to provide seamless and efficient financial services.