Airtel’s loan product to benefit more micro-enterprises

Dar es Salaam. Airtel Money said yesterday that more than 80 per cent of its customers can now access formal loans through its micro loans service known as Airtel Timiza.

The company’s managing director, Mr Sunil Colaso said during the weekend that the service, which was launched in November 2014, is currently disbursing more than 10,000 loans per day across the country.

According to the Managing Director Mr Sunil Colaso, 80 per cent of Airtel Money customers today had never accessed a formal loan before; a strong indicator of how Tanzanians are being rapidly included through the digital financial ecosystem.

“A recent study found that working capital and other asset building strategies was the fastest growing use of the loans amongst 25 per cent of the customer base. It is encouraging to see the positive way in which our customers use the financial tools available to them through Airtel Money,” he said.

He said Airtel Money was committed to increasing access to next generation products which help people manage and grow their small businesses. “Micro-enterprises are the backbone of Tanzania’s economy and empowerment for this segment is important,” he said. He said before Airtel Timiza, most Tanzanians’ only option to obtain credit was through informal agreements with friends and family, or through even riskier channels; an undesirable option with potentially high costs.