POSB Zimbabwe has announced a new micro-loan facility for OneMoney account holders called Mobiloans. The loans resemble what Steward Bank and EcoCash did with their Kashagi loans which were reintroduced last year.
Dial *226# on your @NetOneCellular online now to apply for the Instant Mobiloan POSB to buy stationery and small groceries. The money is paid directly into your OneMoney account.
*Available for all assets @OneMoneyZw account holders.
What does POSB offer?
If you are a OneMoney mobile money account holder, POSB offers a maximum of ZWL$1,500 through its Mobiloans program. The loan is repayable in 30 days and we contacted the POSB contact center to find out the terms of the facility and were told:
- The interest rate is 7%
- Administration fee is 1%
- The self-insurance fee is 3.5%
We have been informed that if a person does not repay the loan within the stipulated 30 days, they will receive an additional penalty of 5% on the remaining balance. If the loan is not executed within 90 days, the POSB will blacklist that person with the credit bureau.
What are the use cases for these loans…
ZWL$1,500 isn’t a lot of money, it’s about US$12.00 at the bid rate and almost half that if you follow the floating sell rate. So if you’re in a bind and need the cash, that might be an option, but personally the interest rates and associated fees aren’t attractive.
But, if you’re in a tight spot, it might be a cost worth paying. I tried to try POSB Mobiloans on my own by dialing *226# and got an error that said:
So it looks like you need to have used your wallet in the last three months to qualify for POSB and OneMoney micro loans.
Also, it would be remiss of me not to go back to Kashagi’s comparison because it looks like OneMoney is trying to get people to use their service. However, unlike EcoCash, OneMoney does not have a sister company that is a full-fledged bank to back a credit facility.
It will be interesting to see if it works and if you applied for POSB’s Mobiloan install, let me know in the comments below.