Airtel offers loans to mobile money users
Airtel is now offering short-term loans to its customers through a partnership with microfinance lender Faulu Kenya.Airtel is now offering short-term loans to its customers through a partnership with microfinance lender Faulu Kenya.
Called Kopa Chapaa, the service enables people to take out loans of between Sh100 (92 euro cents) and Sh10,000, with interest rates set at between three and ten percent, the Daily Nation reports.
Individuals must register with the mobile money transfer service Airtel Money to qualify for a loan, which they repay within ten to 30 days.
Shivan Bhargava, Managing Director of Airtel Kenya - which was launched in 2000 - explained the company has already been piloting the scheme and eventually the maximum loan it offers will increase to Sh70,000.
"More than 60 percent of our subscribers are registered with our mobile money service," he added.
This could mean more people in Kenya are able to access loans, as mobile banking helps to promote financial inclusion and supports those in remote areas who may be unable to reach their nearest branch.