At MTN Benin, MoMo subscribers can borrow money

MTN Benin launches the country's first hassle-free mobile money microcredit service. The mobile company's new product is called “Prêt Xpress”. It targets segments of the population that are excluded from the financial system or cannot easily access credit.

According to Serge Soglo, general manager of MTN Mobile Money, Xpress Loan will enable individuals, self-employed, unbanked or underbanked micro and small businesses in Benin (taxi drivers, craftsmen and vendors) to receive microloans through their mobile telephone.

“Whether you have money in your MoMo wallet or not, it will be possible to request an Xpress loan if you have an Xpress loan limit and no current loan,” explains Jean Prospère Danzabe, director of banking technology at MTN Mobile Money.

How does “Prêt Xpress” work?

Xpress microloans are available to customers who have had a MoMo account for at least 6 months and are eligible for credit. Eligibility is calculated in real time when the customer subscribes to the service. It is based on the use of MoMo services and other MTN services. To access the Prêt Xpress service, a MoMo user simply needs to dial *880#, select Option 5 and then Option 2. An eligible customer can borrow up to 100,000 FCFA. The amount borrowed is also determined based on the usual volume of transactions in the customer's MoMo account.

Every time the MoMo user makes a loan on “Loan Xpress”, they are charged an access fee of 10% of the requested amount and certain taxes. A consent summary is displayed before the loan is approved.

During the term of an Xpress loan, any repayment is expressly made by the customer. To do this, he needs to select the '2) Repayment' option in the Loan Xpress menu to partially or fully repay the current loan. The subscriber has three repayment frequency options, which will be determined at the time of the loan. Daily, weekly or monthly. However, this periodicity cannot exceed 30 days.

Penalties are provided in case of late payment. If there is an outstanding balance on the Xpress Loan at the end of the user-specified maturity date, the user is charged a service fee.

An ineligible MoMo account holder has an opportunity to become eligible. He must continue to use MTN services (MoMo, Data, Voice) to improve his credit score. He will be notified when he becomes a beneficiary. The service also gives the subscriber the option to unsubscribe at any time. To do this, he must ensure that he has repaid all these loans, then contact customer care on 111 via call or SMS or send a Whatsapp message to +22961000000.

A digital solution close to the population

Xpress Loan is the result of the collaboration between MTN Benin, Ecobank Benin and Optasia, a global financial technology company based in Dubai. It allows 'MTN Mobile Money to align with the government's national financial inclusion strategy, which aims to ensure that all Beninese, wherever they are in the national territory, have secure access to services. financial services by 2027,” assures Serge Soglo, CEO of MTN Mobile Money.

“The expansion of our offerings to the population of Benin through our valuable partners of choice such as Mobile Money SA and Optasia is an important step in our development plan as a company,” said Lazare Nulekou, General Manager of Ecobank Benin. .

Executives from MTN Benin, Ecobank and members of the government at the launch of Prêt Xpress
Executives from MTN Benin, Ecobank and members of the government at the launch of Prêt Xpress

The Minister of Digital and Digitization, Aurelie Adam Soulé Zoumarou is excited about this collaboration between private individuals. The partnership and the fruit that arose from it inspire three things in him. The first is the need to lead by example. He recalls that the government set the example through the Alafia microcredit and created the framework.

The second is innovation. A bank that has its customers and that makes loans joins forces with a mobile phone company that also has its subscribers and its way of doing things. The latter is a challenge. The minister challenges MTN and its partners to ensure that “this service serves the women and youth of Benin”.

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