NCBA Introduces Autosweep Feature To Automatically Repay Loan From Customer's Other Accounts

• NCBA Bank has introduced a new feature called autosweep to streamline loan repayments for its customers
• The autosweep feature automatically transfers funds from a customer's linked accounts to their primary loan repayment account if there are insufficient funds
• The feature helps customers avoid late payment fees or penalties by ensuring loan repayments are made on time

Elijah Ntongai, a journalist at TUKO.co.ke, has more than three years of financial, business, and technology research expertise, providing insights into Kenyan and global trends.

NCBA bank has informed its customers of the introduction of a new feature known as autosweep.

Autosweep is a banking feature that will automatically transfer funds from linked accounts to repay loans taken by the same account owner.

"Autosweep is a feature that will ensure seamless loan repayments by allowing the bank to automatically collect the amount due from any alternative accounts you hold with us if your primary loan repayment account does not have sufficient funds on the due date," NCBA Bank said in a customer notice seen by TUKO.co.ke.

How NCBA Autosweep works

NCBA explained that customers will not be required to take any action in cases where their primary bank accounts do not have sufficient funds to repay existing loans.

The bank said,

"If your primary account does not have sufficient funds to cover your loan repayment on the due date, the autosweep feature will automatically transfer the required amount from your alternative accounts (such as savings or other linked accounts) to your primary loan repayment account.

"Please note that this process is automated, so you do not need to take any action. The transfer will occur automatically, ensuring that your loan repayments are made on time and helping you avoid any late payment fees or penalties."

Which accounts will be affected?

The feature will apply to any funded accounts under the same customer base number you have with the bank, including savings and current, but will exempt fixed deposit and junior savings accounts.

The bank emphasised that the autosweep feature will help customers avoid missing loan payments, which can negatively affect their credit score and result in penalties by ensuring timely payments even when the primary account is not sufficiently funded.

NCBA Bank announces interim dividends

In other related news on TUKO.co.ke, NCBA's Board of Directors approved an interim dividend of KSh 2.25 per ordinary share.

This is after NCBA Group PLC reported a profit after tax of KSh 9.8 billion for the first half of 2024, marking a 5.0% increase compared to the same period in 2023.

The bank reported that customer deposits grew by 2.4% year-on-year to KSh 529 billion, while total assets increased by 4.3% to KSh 689 billion.

Proofreading by Mercy Nyambura Guthua, journalist and copy editor at TUKO.co.ke

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NCBA Bank autoswep feature for loan repayments.

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