Dfcu unveils mobile loans

Kampala, Uganda | THE INDEPENDENT | Dfcu bank has unveiled mobile-based micro-loans to its customers as it strives to tap into a larger pool of small savers who on most cases do not have collateral security.

The new product dubbed mobiloan has been unveiled in partnership with the Nairobi-based digital firm, Craft Silicon. This places Dfcu in the ranks of other commercial banks such as NCBA, Finance Trust and Centenary banks that have already rolled out similar products.

Miranda Bageine Musoke, head of personal banking at Dfcu said the new product comes to boost financial needs of customers who need between Shs10,000 and Shs2million repayable within 30 days.

The digitally secured loans will be deposited to the customer’s account in Dfcu bank at an interest rate of 9% per month.

“This has come at the right time as people are now looking for funds to finance their Christmas activities as well ease burden of our customers with school fees,” she said.

The schools which have been closed for nearly two years as result of coronavirus pandemic, are expected to open next month.

Bageine said loan applications will be done only via the Dfcu website, Dfcu app and USSD code *240# and following the prompts. The system will automatically assess the loan limit.

However, in the event of failure to clear the loan in time, money will be deducted automatically from the holders account immediately it is credited.

Bageine, meanwhile, revealed that the demand for personal loans has been better this year compared to last year amidst the pandemic though a large proportion of the customers are now interested in savings.