It will now be easy for KCB Bank Rwanda customers to access small loans to cater for emergencies or restock thanks to the bank’s new mobile credit facility.
Speaking at the launch of the Mobiloan on Wednesday, George Odhiambo, the KCB Bank acting managing director, said Mobiloan is part of the lender’s strategy to increase access to micro-credit through its mobile banking facility.
“Customers will be able to apply and receive small loans of between Rwf500 and Rwf500,000 instantly on their mobile phones,” he said.
However, one must be a KCB account holder and registered on KCB Mobi and must meet predefined criteria, he added.
While launching the facility, John Karamuka, the National Bank of Rwanda (BNR) Director in charge of payments systems, said it will help boost financial inclusion.
“Financial inclusion should not only be about bank accounts but also the usage and uptake of the existing various financial services.”
He also challenged banks to ensure transparency and protect consumer rights as they rollout new financial technology services and products. Karamuka added that such products and services should also be affordable and reliable to help increase uptake of financial services in the country and deepen inclusion.
The central bank official urged financial institutions to conduct awareness campaigns to educate the public on the various digital financial products on the market. They must also ensure transparency when it comes to pricing, he added.
How to get KCB mobile loan
The product is available to every KCB Bank customer registered on the mobile banking service. Customers can access Mobiloan by dialing *522# and following the prompts. One should also be an active account holder for at least six months and have a good track record to access a mobile loan.
The loans are repayable after 30 days, according to Albert Akimanzi, the marketing and corporate communications head. Customers can check their loan application status and repay the loan using their mobile phones. The mobile loan will attract 6 per cent interest.
According to Finscope report released last year, formal inclusion is currently at 68 per cent with mobile banking contributing more than 23 per cent.
Rwanda targets universal financial inclusion by 2020.