ECONET Wireless mobile money transfer service EcoCash has launched a credit facility in which subscribers can borrow from its savings facility, Eco$ave, as it intensifies moves to tap into the unbanked market. Victoria Mtomba
The credit facility, EcoCash loan$, will give subscribers access to the $20 million raised through Eco$ave, a product launched in October aimed at encouraging savings among subscribers.
This means that subscribers can transfer money through EcoCash, save via the Eco$ave facility and borrow through EcoCash loan$.
Addressing journalists yesterday, EcoCash chief executive officer Cuthbert Tembedza said the launch of EcoCash loan$ had come on the back of challenges faced by customers in accessing loans from various financial institutions.
Tembedza said the company through the launch of EcoCash loan$ would offer credit between $5 and $500 to subscribers.
To access the facility, one should keep a minimum of $5 in the Eco$ave account for a minimum of three months.
He said under EcoCash loan$, subscribers do not need to offer any documentation for application for the loan as Econet already had the identity numbers and other contact details of subscribers.
Tembedza said Stewart Bank would not have problems in having people to pay off the loans as the bank was already offering credit for phones and solar lamps and repayment was good.
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Stewart Bank and EcoCash are partners.
Tembedza said information about the clients that the company already had would assist them in issuing out loans to customers.
The loans attract a 5% handling fee and no interest is charged.
Steward Bank chief executive officer Kwanele Ngwenya said they now had one million account holders in one bank.
Ngwenya said these customers needed to be empowered to access credit. He said as a bank they were encouraging customers to have a culture of saving, so for one to access the facility they should have saved with Ecocash Save.
