Econet Services has officially launched a new product called EcoCashLoans, an extension of EcoCashSave at an event held at Holiday Inn in Harare this morning. EcoCashLoans, just like EcoCashSave will be administered by Steward Bank.
EcoCashLoans is a service that allows EcoCashSave customers to borrow amounts from $5 to $500. Initially, the EcoCashLoans tenure will be 30 days but during his presentation, EcoCash CEO Cuthbert Tembedza said they will extend the loan period in due course.
Predictably, there is no paper work involved as this is a mobile money product. Borrowers will access EcoCashLoans via their mobile devices, through EcoCash menus. If the loan application is approved, the loan will be transferred into the borrower’s EcoCash wallet.
Interestingly, EcoCashLoans will have zero interest fees but borrowers will be charged 5% handling fees which puts it amongst the cheapest funds available locally. However, there is a chance that EcoCashLoans will be administered through other banks and if that happens, the indication is that the cost of borrowing will be different.
So how do you qualify?
EcoCashLoans will be available to EcoCashSave customers that have saved at least $5 over the past three months.
The system will evaluate a customers credit worthiness and credit limit by assessing their Econet Wireless airtime spend and EcoCash transaction volumes.
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18 comments
Spell and grammar check please.
Dont be petty. I read this informative article without noticing that because I am not marking but getting free information, its either you have plenty of time or looking a job at Techzim as a proof reader, if its the later they apply gracefully!
Yes the article was informative. Just because I noticed a couple of minor errors that I pointed out does not mean I think any less of the article. It is for the benefit of the writer that’s all; I am sure any writer would appreciate such a correction. In short Langton, I am not looking for a job there, I hope you are open to correction yourself, that is how a nation grows from the little efforts ordinary people put in to make things better
Hi, yes I do appreciate you pointing out the errors. Sorry for late acknowledgement.
Hapana apa Tendai, kungoda kunetsa ana iknowenglishbetterthanyou Jobless
It isn’t petty at all. Ndimi vana //TODO. Tendai was graceful enough to reply acknowledge.
5% for 30 days translates to 60% p.a. that is certainly not cheap!
no duke the 5% is charged once as an admin fee.
ana duke kkkk
It’s called “effective interest rate” in banking my friend. If you pay 5% to get a 30 day zero interest facility your annualised cost is 60% p.a.
no duke!
Econet is afraid of competition with Telecash and this is another gimmick to attract more Ecocash subscribers
Oh ok. But what determines the amount they give out? Is it the amount of money in my wallet or amount that i cash into ma account?
@ Tendayi Mupaso how is this loan repaid or hos does one repay the loan?
Hi, good question. The loan is repaid by performing a cash-in into your EcoCash account then you use the “repay loan” option in the EcoCashSave gateway.
Great start for Ecocash my thoughts on their impact with this product http://mobilekenya.wordpress.com/wp-admin/post.php?post=279&action=edit
Noticed that link is incorrect. Here’s the correct link: http://mobilekenya.wordpress.com/2014/04/03/ecocash-loans-game-changer-opportunity-or-threat-for-whom/
I think there is something very wrong with the Ecocash loan system. They are saying you can get as much as $500 and it is payable over one month! I wonder how exactly they intend on doing that coz say for example the average Zimbabwean earns bout $500, he gets a loan for $500 from ecocash to suppliment staff at home (coz you cant start a business with $500). This loan makes sense in the first month coz he has $1000. But what happens month end when Econet needs their loan amount back and his salary is only $500. It means the whole salary lot goes to pay Ecocash and he is left in zero which then prompts him to take another $500 loan just to survive! Its a vicious cycle. If they could ask for a 2 or 3 month payback I would understand.
Please correct that Oh Econet!!!