Kenya’s Airtel and Faulu launch a phone-based loan app

Faulu Kenya, a micro finance institution in Kenya has partnered with Airtel, a mobile telephone company, to launch a new service called Kopa Chapaa aimed at advancing loan facilities via mobile phone.

John Mwara, managing director of Faulu Deposit Taking Microfinance, said the firm, being a mass market targeted financial institution, has been a leader in financial solutions and innovation that deliver value to the Kenyan population.

“We seek to adopt the latest technologies through innovative financial products. We are therefore seeking and engaging with partners who are like minded and we are grateful that Airtel believed in us and partnered on what is the onset of next generation credit offering,” he added.

Speaking during the launch of the service in Nairobi on Thursday, Airtel Kenya managing director, Mr. Shivan Bhargava said the launch marked a great milestones since Kenya witnessed two key factors in the country’s economy set to push the mobile commerce standards higher in the market.

“This partnership clearly demonstrates of our efforts towards achieving our vision of delivering relevant and innovative mobile solutions,” he added.

The service that targets the microfinance institution’s customers will allow users to borrow short-term loans with a repay period of 10 to 30 days. It will cost a member KSh 5 to access the service.

Users would need an active Airtel line to use the service. To access the loan menu, they would have to dial *305#.

Over the past few years, mobile telephone companies have seen a reduction in their revenue from voice calls and more avenues are being sought by the companies to buffer their profits.

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