Tigo Tanzania is set to launch a collateral-free nano lending product to offer immediate access to micro loans to Tigo Pesa users.
Tigo Head of Mobile Financial Services, Ruan Sawnepoel, said in a statement that the nano loans product, dubbed Tigo Nivushe which offers different lending periods with variable administrative costs based on the length of tenure.
With an average of Tsh 10,000 (US$ 5), the loans are processed in real-time and funds transferred within minutes directly to customers mobile moneywallets. As customers build up their credit history they are able to borrow higher amounts with lower administration fees. 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.
Tigo Nivushe 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.
According to Swanepoel, “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.”
Disruptive E-money services, delivered through mobile phones have already changed the lives of millions of people. With this new responsible lending product, Tigo wants to change the way people think about lending, according to Ruan.