According to the World Bank, financial inclusion is one of the critical drivers of poverty reduction and economic growth in emerging markets and developing economies as identified by the G20.
Studies indicate that a lack of adequate government support is hindering the development of the country’s MSME sector.
Since 2000, microfinance has been a main support system for low-income earners, especially those in the informal sector in Africa.
Despite its importance, the informal sector, mostly made up of small businesses, struggles to get the money they need to grow. In Kenya, these small businesses find it hard to get financing because of tough business and regulatory environments.
They also struggle with internal issues like talent shortages, lack of entrepreneurial skills, and weak management abilities.
Such is common, leading MSMEs to concentrate on activities that require minimal resources, including low capital, skills, and financing.
The International Monetary Fund (IMF) states that mainstream financial systems find low-income people and MSMEs unattractive. This is customarily correct, since they are seen as uneconomical to serve or too hard to reach.
Without access to financial tools, these vulnerable groups can’t progress financially or improve their economic situation.
Timiza by Absa has enabled many underbanked customers, especially the youth, women, and persons with disabilities, to acquire a range of products and services for business and personal use.
Items include solar lanterns, solar home systems, solar inverters, motorbikes, tuk-tuks, mobile phones, cars, and other business assets.
Unlike traditional lenders, the Timiza App offers friendly terms without demanding collateral.
Timiza App has replaced many conventional financial services the banking and financial sectors offer. These services help low earners get credit more easily by letting them buy products right away and pay in small, flexible instalments.
Absa’s digital lending app has improved the payments and security processes by lowering costs and enabling direct business-to-business transactions, eliminating the need for traditional intermediaries.
It offers fast and easy loans to all mobile phone users, including the marginalized, remotely located, and unbanked.
The facility allows both Absa and non-Absa customers to access higher loan limits and enjoy the most affordable facility fee of 5% compared to the market price and interest fee of 2.96% per month.
Timiza giving personal accident cover of up to Sh. 100,000 for only Sh42 per month
”Timiza loan attracts an interest charge of 2.47% per month with a negotiation fee of 5% charged on the cost of processing the loan. A 20% excise duty on the negotiation fee applies, this is deducted upfront from your requested loan amount upon disbursement into your Timiza wallet,’’ Absa Bank states.
Customers can access up to Sh. 150,000 repayable in 30 days. Â The more one transacts the more they grow and improve their Timiza credit limit. In addition, one gets discounts and loan limit growth on early repayment.
To qualify for loans, one must be an active M-Pesa subscriber for at least 6 months before the date of application of the Loan.
In addition, borrowers must have been actively using other Safaricom services such as data, voice, and M-Pesa services before the loan application.
Digital lending on the Timiza App has allowed youth and women-led MSMEs to grow and compete, even during tough times like the current economic downturn. It has also helped boost human capital by making the labour force more productive.
Click the link below to start enjoying the benefits of using Timiza App: