By Neo Kolane
Telecommunications company Vodacom Lesotho’s (VCL) financial services arm launched its new product called Nkalime M-Pesa in Maseru today.
This is a partnership with Airvantage Lesotho to provide a short-term loan facility through M-Pesa and premium account holders.
The product manager of VCL Financial Services Mpho Mosotho explained that product is flexible in that it allows users to repay their loan in partial payments or in full.
Mosotho added that the system allows a user to apply for multiple loans within a month, provided their credit limit has not been reached.
She clarified that M-Pesa account holders may apply for loans depending on their individual credit rating.
“A user can request from as little as M10, of which 15 percent will be charged as interest on the loan amount.
“A 30-day period will then be afforded for repayment of the loan, following which additional interest will be charged after 30 days,” Mosotho explained.
She revealed that the product is flexible in that it allows users to pay their loans in partial payments or in full.
Commenting on the product, the managing director of VCL Financial Services Palesa Mphunyetsane said a large number of Basotho are unbanked and typically do not have access to traditional banking.
Mphunyetsane explained that a sizeable segment of the populace has been using mobile money for years now, meaning VCL will have a record of their accounts and transaction history which are enough to build a credit profile.
In order to qualify for a loan, an account holder must have been active on M-Pesa for at least 3 months
To request for a loan, customers dial *200#, select 4 for M-Pesa them select 1 for Nkalime.
