KCB Bank Rwanda's mobile banking application just got a lot more interesting as the bank has introduced a new option in it that allows customers to apply for loans and receive them immediately. With the KCB Mobiloan, customers do not have to go all the way to a branch to apply for loans, but can do it much more easily on their mobile phones.
Guy Rwaburindi, the Head of Retail Banking at KCB Bank Rwanda, said the service was launched in May to ensure convenience for its customers, but also as part of the bank's vision of playing a key role in financial inclusion in Rwanda, and of promoting digital finance.
“We have disbursed over 1000 loans. Customers have been borrowing and paying back; they are enjoying the self-service loan from their living room or whenever they have an emergency," he explained.
"The difference is that there is no contact with the bank staff, so it's accessible all the time even if you need money at midnight, you can get a loan through self-service," Rwaburindi added. "Another key part of its convenience is that it offers absolute privacy."
The product is available by dialing *522# and following the instructions, after which the customer receives a message informing him of the approved credit amount and the repayment date, which currently can reach up to one month.
Rwaburindi said new customers can open accounts with the bank through the *522# code, and will be able to access the Mobi Loan service after six months of actively banking with KCB. The loans range between Rwf 500 and Rwf 500,000, depending on the client's score in the bank's Management Information System (MIS) which depends on their banking behavior and determines the credit limit.
Read this article and more in issue n° 79 of Hope Magazine.