By Chisomo Phiri
TNM Mpamba Ltd, a wholly owned subsidiary of TNM Plc has become the first mobile telecoms network service provider in Malawi to offer cash loans using mobile phone wallets.
Speaking to journalists on Friday, the company’s General Manager Christopher Sukasuka said the loan attracts a prorated interest rate of 6%, a penalty of 0.5% and access fee of 10% where customers exceed a prescribed repayment of 30 days.
He said the maximum amount currently allowed is K20,000 as cash from an agent or through bank or in form of electronic wallet value, but the cap will increase over time.
“This is the smartest way to manage finances in these hard times. It takes away the stress from customers, as it is the easiest overdraft to get, accessible 24/7 on your phone wherever you are, ” he said.
Sukasuka, flanked by TNM Plc Chief Executive Officer Michel Hebert and Managing Director of Huawei Malawi Gu Mu, the official TNM technology partner said the key eligibility requirement is customers who have used Mpamba for 90 days and satisfying KYC requirements.
“An interest rate of 6 percent per month, prorated, will apply and a penalty of 0.5% may accrue where customers exceed a prescribed repayment period of 30 days.
“Such interest will be necessary to cover the service costs when customers exceed 30 days before crediting their wallets. The funds will be deducted from the same Mpamba wallets,” he said.
Sukasuka said apart from the option of cash advances, the facility dubbed ‘Mpamba Kankhe’ will provide overdrafts for payment categories such as utilities, merchant (POS) payments, satellite television subscriptions, airtime and bundle recharges and Person-to-Person (P2P) transfers.
On his part, Gu Mu said Huawei is working hand in hand with TNM Plc to transform the telecoms landscape in Malawi by offering life-changing innovations such as the latest loan product.
Established in 1995, TNM is the oldest telecommunications company in Malawi.
