Mokash, mobile micro lending and saving facility from MTN Uganda and the Commercial Bank of Africa (CBA) has processed over UGX 1 billion shillings in loans over the past two month in operation, reports suggests.
The service has been gaining popularity massively for it’s instant loan processing and no need for collateral – which usually comes with traditional banking loans processing bureaucracies.
At this rate, CBA looks likely to beat their targets of reaching 40% of the current 7 million mobile money users within one year, 60% of users within 2 years and 70 – 75% of users within 3 years.
According to new reports by Daily Monitor, Mokash in the past two months has been adding an average of 15,000 customers per day, reaching 920,000 over the period.
The service processes an average of 2,000 loans per day; with an average loan size of 18,000 UGX, according to CBA’s Group Managing Director, Isaac Awuondo.
MTN Uganda could not reveal the exact figure of the savings they had mobilized and loans they had disbursed in the period neither could CBA, however CBA’s reports showed that 1 billion UGX in loans had been approved, while the savings are also said to have reached 2 billion UGX during the two months period.
Daily Monitor quotes that the savings could be hitting 3 billion UGX soon, since the Central Bank of Uganda annual supervision report for 2015, show the total commercial bank loans in the year stood at 10.8 trillion UGX or 900 billion UGX per month.
Not only in Uganda, but in it’s other neighboring countries; Kenya and Tanzania, telecom operators who have partnered with CBA have reported overwhelming success. Additionally, other reports about Mokash show that the service will soon be launched in Rwanda.