VCL launches short term loan service
VODACOM Lesotho (VCL) Financial Services has launched Nkalime M-Pesa, a new digital service that allows customers to apply for short term loans through the M-Pesa platform.
The product was developed in partnership with Airvantage Lesotho, a local micro finance institution.
Speaking during the launch in Maseru recently, VCL Financial Services product manager, Mpho Mosotho, said the new service was available strictly for customers who have verified their personal details with M-Pesa.
“Nkalime M-Pesa is strictly available to customers that have verified their personal details with M-Pesa, such as full names and ID numbers,” Ms Mosotho said.
“These are standard account and premium account holders.”
Account holders can apply for loans from as little as M10, depending on their credit rating, Ms Mosotho said.
“A 15 percent interest will be charged on the loan amount over a 30-day period. Additional interest will be charged after this if the user hasn’t settled their debt.”
She said Nkalime M-Pesa was flexible as it allowed customers to settle their debts partially or in full.
It also allows users to apply for multiple loans within a month provided they have not reached their credit limit.
“Each account holder’s credit limit depends on their M-Pesa account usage. The more a user transacts through M-Pesa and repays their loans on time, the higher their credit rating. This allows them to request more funds,” Ms Mosotho said.
On her part, VCL Financial Services Managing Director, Palesa Mphunyetsane, urged clients to use the facility.
Ms Mphunyetsane said it was easy to register for Nkalime M-Pesa as VCL has a record of their customers’ accounts and transaction history “which are enough to build a credit profile”.
“We urge people to use this new service which is convenient.
“One of VCL Financial Services’ core mandates is to develop solutions centred on digital and financial inclusivity,” Ms Mphunyetsane said.
To qualify for a loan, an account holder must have been active on M-Pesa for at least three months.