Maisha Microfinance Bank (Maisha MFB) in partnership with Airtel have rolled out a mobile money savings and loan product targeting registered Airtel Money subscribers.
Maisha MFB becomes the first telco-backed microfinance to launch a savings and mobile money solution in the market and the fourth financial institution, alongside banks like Commercial Bank of Africa (CBA), Kenya Commercial Bank (KCB) #ticker:KCB and Equity #ticker:EQTY.
Maisha MFB chief executive Ireneus Gichana said that prior to its launch in Nairobi Tuesday, the product had undergone a 45-day pilot period to ensure that it was running smoothly.
During the piloting period, the microfinance opened over 50,000 new accounts through M-Fanisi, with Mr Gichana saying that about 20,000 of these accounts have accessed loan facilities through the product.
“Up to 2,000 loan applications are made on a daily basis through M-Fanisi and this product marks Maisha as the first microfinance bank in Kenya to successfully roll out a telco-backed, mobile- based loans and savings product,” Mr Gichana said during the launch.
Approved loans are repayable within seven, 14 and 30 days at a one-off facility fees of three per cent, five per cent and 7.5 per cent respectively with excess duty applicable on the fees.
One can also open a fixed deposit account for a period of one to 12 months and earn interest of 8.5 per cent to 11.25 per cent per annum, depending on period.