Prime
Airtel Money lends out Shs29b per month in quick loans
![](/resource/blob/4686736/16b799e6fa27546a38ee3f5d918da85f/mark001-pix-data.jpg)
Airtel Money generates at least Shs737.1b in revenue. Photo / File
What you need to know:
- The quick loan product began as a test project for Airtel Africa’s financial technology (Fintech) division, now averagely lends out Shs970m every day
Airtel Mobile Commerce, which operates Airtel Money, reports that it lends $7.9m (Shs29.1b) monthly through its quick loan product.
A facility that began as a test project for Airtel Africa’s financial technology (Fintech) division, now averagely lends out Shs970m every day.
In a report by Airtel Africa, the parent company of Airtel Mobile Commerce, said more than 866,000 are taken up by 254,000 customers in Uganda monthly.
“Our quick loan product is designed to … help customers make payments when and where they want to, reducing the number of failed transactions,” the report reads in part.
The loan product, which is a product of Airtel Money and Housing Finance Bank, helps customers to complete their transactions even when their account balance is insufficient by taking out multiple short-term loans up to their credit limit, each with a 15-day payment deadline and introduced after Airtel saw an increase in failed transactions as a result of customers having insufficient balances.
Airtel Money, which also has other microloan products, remains highly profitable, generating revenue of Shs737.1b in the year ended 2023, from which it returned a profit of Shs249.9b, an increase from the Shs218.6b registered in 2022.
Mobile money micro-lending has been growing, allowing several Ugandans to access short-term loans with repayment periods ranging from a week to 30 days.
The Airtel Africa report indicates that demand for its quick loan in Uganda had reached $7.9m (Shs29.1b) per month by March 2023, driven by customers such as micro-traders and shoppers.
The application process involves a 2 percent facility take-off as well as a daily interest of 1 percent each day that is unpaid for 15 days.
However, the product is subjected to a 3 percent late payment fee if it is not repaid within 30 days, while a 3 percent overdue fee on the outstanding loan balance is applied in the event that a customer fails to repay within 37 days.