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MTN Mobile Money Uganda, NCBA Bank Launch MoMo Advance

Mokash is a savings and loan service for MTN. Courtesy Photo

Mokash is a savings and loan service for MTN. Courtesy Photo

MTN Mobile Money Uganda in partnership with NCBA Bank Uganda, have launched a new MTN mobile money overdraft service dubbed MoMoAdvance that will enable MTN mobile money customers to access advance mobile money (MoMo) funds that they can use to complete their MoMo transactions and pay back later. The development follows a successful pilot scheme with about 135,000 subscribers since December 2020.

Available to all MTN MoMo customers, MTN MoMoAdvance is an extension of the MTN MoMo customers’ transacting capability, enabling them to continue transacting even when they have run out of MoMo within an approved credit limit. The service is now available to all MTN customers that have been using MoMo for a minimum period of 6 months, passed credit scoring based on their usage of mobile money, and other MTN services.

MoMo customers can use their MoMoAdvance to send Mobile Money, pay for goods and services through MoMoPay, Airtime and bundle purchases, Pay bills such as water, electricity, TV subscription among others. Notably, the service can also be used by MoMo Agents, Merchants, Small Medium Enterprises (SMEs), and corporate users of MTN MoMo among others.

While launching MTN MoMoAdvance, Mr. Stephen Mutana, the General Manager MTN Mobile Financial Services said that MTN MoMoAdvance will offer the MTN MoMo customers convenience of transacting beyond their MoMo wallet balance and pay back later.

“MTN MoMoAdvance is a product that we have been working on for some time with our partners from NCBA Bank. We are happy to finally roll it out to all our customers and we believe that it will give them the convenience to transact seamlessly beyond their wallet balances during times of need then pay back later,” Mutana said.

Mutana further noted that MoMoAdvance will solve the issue of insufficient MoMo funds that customers face in  moment of emergency while transacting with MoMo.

To activate MoMoAdvance customers are required to perform a one-time registration for the  MoMoAdvance  service through the MyMTN app or by dialing *165*5*3#, select YES to accept Terms and Conditions by entering their mobile money PIN.

Once approved, the customer’s credit limit is available for usage on an ongoing basis and can be increased  proactively based on repayment performance, with no need for a new application when you need to access the  limit.

“I encourage all customers to continue actively using MTN services such as MTN MoMo, Data, Voice which  improves their credit score over time,” Mutana  added.


To distinguish MoMoAdvance from MTN’s loan facility, MoKash, Mutana  noted that unlike the MoKash loan facility where MTN customers can borrow money within their credit limits and pay back in 30 days as they wish,  MoMoAdvance on the other hand is an overdraft facility that allows customers use more money than they actually have on their accounts, and the overdraft amount is automatically deducted the next time a customer gets funds on their MoMo account.

MoMoAdvance attracts a one-off access fee equivalent to 2.75% of the amount overdraft used and a daily  interest of 0.5% on any outstanding balance.

The daily interest shall be Charged at the end of each day that the overdraft is outstanding up to a maximum of  45 days.

No  maintenance  fee  is charged if  the outstanding overdraft amount is settled within the first day. No  additional fee shall be charged beyond day 30.


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