The Independent Uganda: You get the Truth we Pay the Price
Kampala, Uganda | THE INDEPENDENT | In a bid to empower individuals with better access to micro-loans and savings, NCBA Bank Uganda, and MTN MoMo have joined forces to launch the “Mo Money with Mokash” campaign. The campaign, running for the next eight weeks, started on May 15 and aims to incentivize timely loan repayments and encourage responsible financial behaviour among users.
Miriam Olimi, the Digital Communications Manager at MTN said that a good repayment history facilitates greater access to unsecured micro loans, enabling the borrowers to have more access to cash through the Mokash digital loan product.
She said, “When customers repay their loans promptly, it not only improves their creditworthiness but also enables them to access more substantial and quick unsecured loans.”
She stressed that this initiative is designed to foster a culture of timely loan repayments, adding that when customers pay back their loans, it increases the number of people who can equally and easily access credit whenever they have the need.
Godfrey Wanambwa from Kira is one of the beneficiaries. “I heard the adverts on TV and radio but never thought I would win. I have been using Mokash for some time, and the messages encouraged me to continue saving and repaying my loans. Winning this prize will help me complete my chicken roasting stall and dive straight into business,” Wanambwa shared.
The campaign features weekly draws where customers can win Shs500,000, with three grand prizes of Shs5 million each at the end of the eight-week campaign.
Charlotte Matsiko, NCBA Digital Bank-Portfolio Manager said, “Although the campaign was intended to encourage repayment of loans, the majority of the Mokash customers were repaying their loans on time.
She said about 80% of borrowers are repaying their loans. “The campaign is designed to motivate our customers to meet their obligations.
“Digital credit now holds the same weight as traditional bank loans since it’s registered on the CRB. Defaulting can significantly hinder one’s ability to obtain credit elsewhere.”
She also noted that the timing of the campaign coincides with the school fees season, a period that typically sees a surge in credit demand. “Parents often need access to credit to pay school fees.
