…Customers to borrow money via Mpamba up to MK20,000
LILONGWE-(MaraviPost)-TNM Mpamba Ltd, a subsidiary of TNM Plc has introduced cash loans through mobile phone wallets.
TNM Plc has become the first mobile telecoms network service provider in Malawi to offer overdraft facility using mobile phone wallets.
Dubbed TNM Mpamba Kankhe, the facility offers a financial envelope allowing customers to complete their transactions using their TNM Mpamba wallets even when they do not have enough balances in their wallets.
Speaking in Lilongwe, TNM Mpamba General Manager Christopher Sukasuka says the loan attracts an interest rate of 6% every month.
Sukasuka disclosed that the maximum amount currently allowed is MK20,000 as cash from an agent or through bank or in form of electronic wallet value.
“This is the smartest way to manage finances in these hard times. It takes away the stress from customers, as it is the easiest overdraft to get, accessible 24/7 on your phone wherever one is.
“It’s difficult to obtain loans when one needs most from conventional banks, but TNM Mpamba has eased that burden. Our agents will also be able to complete transactions even when they don’t have positive balance,” he said.
Sukasuka, flanked by TNM Plc Chief Executive Officer Michel Hebert and Managing Director of Huawei Malawi Gu Mu, the official TNM technology partner said the key eligibility requirement is customers who have used Mpamba for 90 (three months) days and satisfying KYC requirements.
“An interest rate of 6 percent per month, prorated, will apply and a penalty of 0.5% may accrue where customers exceed a prescribed repayment period of 30 days.
“Such interest will be necessary to cover the service costs when customers exceed 30 days before crediting their wallets. The funds will be deducted from the same Mpamba wallets,” he said.
Sukasuka added that apart from the option of cash advances, the facility dubbed Mpamba Kankhe will provide overdrafts for payment categories such as utilities, merchant (POS) payments, satellite television subscriptions, airtime and bundle recharges and Person-to-Person (P2P) transfers.
Gu Mu said Huawei is working hand in hand with TNM Plc to transform the telecoms landscape in Malawi by offering life-changing innovations such as the latest loan product.
Determination of agent overdraft registration/limit will be based on agent’s monthly commissions, transaction volumes (Cash in, cash out, airtime top ups and agent bill payments) and duration on Mpamba (six months).