The App’s co-founder, Mr Matt Flannery, said the loans will largely benefit small scale traders.
Dar es Salaam. Mobile money-lending App, Branch, plans to avail a total of Sh570 billion for issuing out as loans by the end of this year, it was revealed in Dar es Salaam yesterday.
The App’s co-founder, Mr Matt Flannery, said the loans will largely benefit small scale traders.
“Since launching the App in Tanzania last year, we have disbursed over Sh12 billion, issuing more than 400,000 loans to nearly 200,000 users. As the business booms, we plan to disburse more funds to reach more users,” he told a press conference yesterday.
Unlike traditional financial institutions, Branch gives a chance to customers to access loans on their mobile devices, according to him.
Regardless of the location, Mr Flannery assured Tanzanians that with their Android smartphones, they could access between Sh5, 000 and Sh1 million in loans. The interest rates range from 15 per cent and bellow, while repayments take one week to three months. According to him, loans are disbursed and repaid directly through mobile money networks including Tigo Pesa, M-pesa and Airtel Money.
“One can get a loan in just 30 seconds and it requires no face-to-face meetings, lengthy application processes, collateral or paperwork,” he assured, adding that customers could access loans regardless of their banking history through their loan eligibility based on data procured from the customer’s smartphone.
“When accessing loans from Branch, the customer needs to install the Branch App, which is available in the Google-play App, filling a form by providing personal details as instructed,” he noted.
He additionally pointed out that, seven out ten customers use Branch loans to help start or grow their business, with few meeting their financial obligations.
Mr Flannery is persistent that, his business will instantly grow, banking his hopes to the rise of the penetration of smartphones in the country and weaknesses of traditional lenders.
“I am positive that more than 23 per cent of Tanzanians use smartphones as it shown in Tanzania Communication Regulatory Authority report. The population is huge for us to do business comfortably,” he noted.
