Tigo Tanzania launches nano lending scheme

Tigo Nivushe to foster financial inclusion
Source- Getty Images
Source- Getty Images

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In an attempt to encourage responsible lending, Tigo plans to launch an easy to access nano lending product called Tigo Nivushe. This new product will not require collateral and will offer immediate access to small loans to Tigo Pesa users.
Tigo head of mobile financial services, Ruan Sawnepoel, said in a statement to the press that for the first time the nano loans product will allow Tigo Pesa customers to build their own credit history. “No security is required or taken and the loan product has been designed to be transparent and foster responsible lending.”

The loans will be processed in real-time and funds delivered directly to the mobile wallet within minutes, so customers can immediately use the funds to pay bills, transfer to others, or cash out at the thousands of agents across the country, he noted. “Previous mobile behaviour is used to determine suitable limits for loans and customers will only be able to have one loan at a time. Protection against life shocks is included as everyone will be automatically insured for the loan amount against death or permanent disability. Most importantly, as the product is fee based no interest can be accumulated in the event of default and acquiring a loan will not affect mobile or Tigo Pesa accounts in any way, “ Swanepoel said.

The head of mobile financial services further said: “Tigo Nivushe is an essential product for driving financial inclusion, which is critical to Tanzania’s continued economic growth and success. These quite small loans can make all the difference and are crucial for building credit history and obtaining credit in the future.”

 

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