Econet Services has officially launched a new product called EcoCashLoans, an extension of EcoCashSave at an event held at Holiday Inn in Harare this morning. EcoCashLoans, just like EcoCashSave will be administered by Steward Bank.
EcoCashLoans is a service that allows EcoCashSave customers to borrow amounts from $5 to $500. Initially, the EcoCashLoans tenure will be 30 days but during his presentation, EcoCash CEO Cuthbert Tembedza said they will extend the loan period in due course.
Predictably, there is no paper work involved as this is a mobile money product. Borrowers will access EcoCashLoans via their mobile devices, through EcoCash menus. If the loan application is approved, the loan will be transferred into the borrower’s EcoCash wallet.
Interestingly, EcoCashLoans will have zero interest fees but borrowers will be charged 5% handling fees which puts it amongst the cheapest funds available locally. However, there is a chance that EcoCashLoans will be administered through other banks and if that happens, the indication is that the cost of borrowing will be different.
So how do you qualify?
EcoCashLoans will be available to EcoCashSave customers that have saved at least $5 over the past three months.
The system will evaluate a customers credit worthiness and credit limit by assessing their Econet Wireless airtime spend and EcoCash transaction volumes.