Safaricom to Offer Unsecured Loans to Mobile Money Agents
Published on: 19th Feb 2013
Note -- this news article is more than a year old.
Kenya's Safaricom is to offer its mobile banking agents an unsecured loan facility to help them expand their mobile money services after it signed a partnership with KCB Group, East and Central Africa's largest bank.
In the new proposition, M-PESA agents will be able to borrow loans worth up to 6 times their average commissions earned over a 6 month period.
Agents can borrow a minimum of Kshs.50,000 and a maximum of Kshs.5 million. The loans attract a 20% interest and are repayable over a 12 month period. Safaricom's Chief Executive Officer, Bob Collymore said that the new product is designed to ensure that agents have sufficient float to meet the growing customer transaction volumes on the M-PESA platform.
"Through this partnership, I believe we now have an effective solution to the challenges around float shortages", he said. KCB Group's Chief Executive Officer, Joshua Oigara, said the partnership underpins the bank's commitment to support Small to Medium Enterprises through the extension of credit to M-PESA's agent network of over 60,000 retail outlets.
In the first half of the 2012/2013 financial year, Kenyans transacted an average of KShs. 80 billion per month through M-PESA; which equates to 31 percent of country national income.