Leading mobile operator in Tanzania, Tigo announced that it will launch an easy to access nano lending product as part of its mobile financial services. This new product will not require collateral and offers immediate access to small loans for Tigo Pesa users.
Tigo Head of Mobile Financial Services, Ruan Sawnepoel, said in a statement that the nano loans product, called Tigo Nivushe is flexible and works based on the credit history built by customers as they take out and pay off the loans.
Explaining the product’s flexibility, Swanepoel said it offers different lending periods with variable administrative costs based on the length of tenure. The loans – with an average of Tsh 10,000 (US$ 5) – are processed in real-time and funds are transferred within minutes. As customers build up their credit history, they are able to borrow higher amounts with lower administration fees. Loans are delivered directly to the mobile wallet so customers can immediately use the funds to pay bills, transfer to others, or cash out at the thousands of agents across the country, he noted.