New savings, loan offering for Rwandans

MTN nAIJA  2From PHYLLIS BIRORI in Kigali, Rwanda
KIGALI, (CAJ News) – MTN Rwanda, in partnership with Commercial Bank of Africa (CBA) has launched a ground breaking savings and loans product enabling registered MTN Mobile Money customers to save and earn interest and to take loans on a short term basis using their phones.
Dubbed MoKash, it allows MTN Mobile Money customers to conveniently borrow as much as Rwf 300 000 (US$360) as well as save as little as Rwf100, while earning interest of up to 7 percent.
Additionally, the customer can setup an auto-savings arrangement to periodically make deposits to their MoKash account as well as check their savings balance and loan account status.
Mokash reaffirms MTN’s leadership position as the first Telco in Rwanda to commercially launch a combined savings and loans product, said MTN CEO Bart Hofker.
“Partnering with CBA to bring this innovative product to the forefront reiterates our commitment to contributing to the national economic strategy on enhancing cashless transactions that offer convenience and security to all Rwandans,” said Hofker.
The service is expected to enhance Rwanda’s financial inclusion agenda as it makes it possible for people to easily use the service without having to fill in any documents while opening the account.
In addition, no minimum balance is required,and no transactional charges are incurred while moving money between MoKash and MTN Mobile Money.
CBA’s Group Managing Director, Isaac Awuondo, said Savings and Loans solutions were especially critical to lowering the vulnerability of households to financial shocks and motivating productive investments.
“When savings and lending solutions are delivered digitally, we greatly lower the access barriers for households that are typically underserved by formal financial services providers,” said Awuindo.
CBA is serves 26 million customers in Kenya, Rwanda Tanzania and Uganda.
As of December 2016, over 8,9 million Rwandans are active mobile subscribers, with over 4 million of those on the MTN network.
CAJ News

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