New mobile loan scheme targeting cash-strapped Ugandan workers

A new mobile lending tool has been launched to help cash-strapped Ugandans in small and medium enterprises (SMEs) in need of emergency financial assistance to get quick loans.

The system was launched by Goldmine Finance, a microfinance institution, on Friday, July 1.

It aims to address the challenges that Ugandans face in accessing loans, such as cumbersome paperwork and wasted time.

Speaking to reporters at their offices in Nakawa, Allan Tayebwa, the institution’s chief executive, said the mobile lending system will bridge the financial access gap in the corporate sector by ensuring business continuity while ensuring that those in need of financial assistance obtain it easily and quickly.

“We are solving two challenges; the diversion of money by business owners to meet employees’ emergency financial needs and save time that would be wasted in the process of a loan,” he said.

He said the system also comes to fill the void of some institutions and companies that do not lend money to their employees.

A new mobile loan tool has been launched to help cash-strapped Ugandans in small and medium enterprises (SMEs)

“What we try to do is that within minutes we are able to give you the money – whether it is at midnight or during the weekend when your employer or the bank is not there. to give you a loan,” Tayebwa said.

“We’re trying to shorten the processing time and make sure you don’t have to give your boss or your bank a million reasons why you need the money.”

Using mobile lending technology, customers can manage their short-term cash needs, giving them the option to borrow up to 1 million shillings or up to 33% of their monthly net salary. The payment term is 30 days and an interest rate of 10% is charged.

According to Tayebwa, they partner with employers to sign memorandums of understanding allowing their employees to borrow payday loans through the system using their employment contracts.

He said this is to ensure that in case the borrower fails to pay within the stipulated time, the employer can deduct the money from the borrower’s salary.

He said that unlike telecom companies that rely on mobile money statements, which may not generate much cash, they rely on salary to lend money.

“No collateral is required as long as you are earning a salary and have an employment contract,” Tayebwa said.

Lungi Koni, Marketing Advisor at Goldmine Finance, said their goal is to ensure people can manage financially and meet their needs.

“We developed the app because across the microfinance industry, finding better, faster and more efficient ways to reach new and existing markets is a priority. The impact of innovation and adapting to technology is an important driver to stay at the forefront in the ever-changing microfinance industry,” she said.

To access funding, dial *284*93# and follow the instructions.