LILONGWE-(MaraviPost)-In bid to empower its customers on financial inclusion the country’s leading Smartphone and network provider Airtel Malawi on Thursday re-launched “Kutchova loans” that subscribers will be able to access the soft loans up to MK80,000 without collateral.
The initiative aimed to reach many customers that access to such loans should make meaningful usages for their daily undertakings.
With financial partnership with FDH Bank since March 2016, “Kutchova loans” customers are able to borrow money on Airtel money depending on their airtime usage and how long have there been using the network.
The product which was on 18 months pilot phase with a limit of MK40, 000, now customers will be allowed to access the funds up to MK80, 000.
The Kutchova loan will have a 15 day loan repayment period to be paid at 10 percent handling fee. The loan has therefore the convenience of being extended to 30 days with an extra 2.5 penalty fee added to the initial 10 percent.
Charles Kamoto, Airtel Malawi’s Managing Director told the news conference in the capital Lilongwe that re-launching of the product is to empower customers economically with additional funds for meaningful usage.
Kamoto said all terms and conditions have been put in place to address loans defaulters which will be applied to all customers that product be continued to serve more subscribers.
“Kutchova’ is an easy, simple and instant means to access loans via phone anytime, anywhere without traveling providing collateral or completing any paper-work.
“Usual terms and conditions will apply as Kutchova is only available to Airtel Money Subscribers who have been on Airtel Network for a minimum of six months. The loan will solely depend on the customer’s usage of their Airtel Money account, and making of voice calls on the Airtel Sim card,” says Kamoto.
FDH Managing Director, Eric Quattara assured Airtel customers of his company’s commitment to increase financial support towards the services that more rural Malawians are part of economic inclusion.
Quattara added that with the mobile banking expects more people in the country to improve their economic transformation for the better.
To access Kutchova loans, the customer needs to dial *211# which will give instructions for further steps with a request limit from MK3, 000 to MK80, 000.
Currently, Airtel is running a 13-week promotion for its customers in this festive season by topping up airtime that five lucky winners get MK200,000 daily and one subscriber get MK1million weekly whose grand prize is MK5 million at the end of the promotion.