Lilongwe, As part of its quest to promote financial inclusion for the unbanked masses across the country, Airtel Malawi in partnership with FDH Bank have revised upwards the borrowing limit of the Kutchova Loan from the initial K40, 000 to K80, 000.
The extension for the provision of the soft loans follows an 18 month pilot period in which the service was only offered to selected subscribers as the mobile service providers were still monitoring the potential of the product, which is part of their Airtel money platform.
Having been impressed with the overwhelming response from its customers who have used the facility from March last year (2016) when it was launched, Airtel Malawi and FDH Bank have moved in to add on the convenience on the daily lives of Malawians.
Managing Director for Airtel Malawi, Charles Kamoto, says the support they have received has motivated them to add roots and cement the product, hence opening up the service to all active Airtel money subscribers and those who make voice calls on their network.
We have gained significant mileage in helping our subscribers in their daily financial transactions who use Airtel Money to pay water bills, electricity, fuel and even buying groceries through the service.
We want to build from this success to offer more to our customers, said Kamoto.
Managing Director for FDH Bank, Eric Qathala, says as a homegrown bank, they will always strive to put the interests of local Malawians among their priority targets as they try to fully exploit the potential of digital interventions.
We believe that through this collaborative effort, we can help in increasing access to basic financial services. Every Malawian in the smallest villages should have access to micro-loans as most do not have access to banking services, he said.
The Kutchova Loan runs on a 15 day circle attracting a 10 per cent interest on repayment, but it has a convenience of extension of 30 days with an extra 2.5 per cent added to the initial interest (of 10 per cent).
The service is available to Airtel customers who have been active on the network for a minimum of six months. The loan limit will depend on the customers’ usage of their Airtel money account and making voice calls on the Airtel sim card.
Source: Malawi News Agency MANA