ZED-FIN Financial Services Limited a Zambian wholly owned financial institution has teamed up with Airtel Mobile Commerce Ltd (Airtel Money) to offer loans to Airtel customers through the Airtel portal. The partnership will enable eligible customers to obtain a loan in times of need that will go directly into their Airtel mobile money accounts.
Speaking at the launch of the new loan service, ZED FIN Chief Executive Officer, Justin Chola expressed his excitement about his company’s addition to the Airtel Money Na Sova Platform marking the official launch of Zed-Fin Loans, powered by YABX, a technology provider.
Chola noted that this milestone will allow them to provide loans to Airtel Money subscribers, which will contribute significantly to financial inclusion for the vast majority of Zambian citizens who find it difficult to access financial assistance for their day-to-day micro-businesses or other emergency financial needs.
“Having Zed-Fin Loans on the Airtel Na Sova Platform is an important milestone for us as it will allow us the opportunity to provide loans to Airtel Money subscribers. This will allow for potential exponential growth in our contribution to financial inclusion for the vast majority of our fellow citizens who ordinarily find it difficult to easily access financial assistance for their day-to-day micro businesses or other emergency financial needs,” Chola said.
“To put this in context, I am referring to Amai Tembo who sells beans at Matero Market. She ordinarily sells K300 worth of beans per day but wants to increase that to K900 per day. Accessing the extra K600 to grow her business is a challenge because she has been excluded from most formal lines of credit. This is where Zed-Fin Loans comes in because our desire is to work with Amai Tembo and help grow her business from selling K300 worth of tomatoes to selling thousands of kwacha worth in a day.”
Meanwhile, Airtel Mobile Commerce Country Director, Andrew Chuma, emphasized the importance of digital financial services, especially for the marginalized, the unbanked, and those who are not attached to formal employment. He said that access to credit remains a huge challenge for these segments of society, who neither have collateral nor credit history or salary adding that solutions such as the Na Sova ZED FIN loan service become vital.
Chuma said Airtel Money is cognizant of the importance the Government had placed on digital financial services and as such believed that such partnerships were important to foster sustainable financial growth in society, therefore the unveiling of the new product with ZED FIN symbolized the Company’s commitment to continue championing the agenda as prescribed in the 8th National Development Plan.
“Government has time and again reminded us of how powerful digital financial services can be not only to institutions but to individuals and this is why when credit is used responsibly it can be used to pay for important things such as school fees as well as provide a lifeline in case of health emergencies,” Chuma said.
To qualify for a loan from the Na Sova ZED FIN service, one needs to be an active Airtel Money customer for at least six months and regularly transact on Airtel Money. They will also need to have paid up any other loans taken through Airtel Money.
The partnership between ZED-FIN Financial Services and Airtel Mobile Commerce Ltd is a significant step towards transforming loan accessibility in Zambia. With their combined efforts, they aim to provide a lifeline to those who need it the most and foster sustainable financial growth in society.
