TNM Mpamba Ltd, a subsidiary of TNM Plc, has pioneered mobile wallet-based cash loans in Malawi, marking a significant milestone for the country’s telecom sector. General Manager Christopher Sukasuka announced the move, revealing that TNM Mpamba has become the first mobile telecom network provider in Malawi to offer this service.
Under the new initiative, customers can access loans via their mobile wallets, with an interest rate of 6% per month, along with a 0.5% penalty for exceeding a 30-day repayment period and a 10% access fee for delayed repayments. The initial loan limit is K20,000, and the cap is set to rise in the future.
Named “TNM Mpamba Kankhe,” this financial service allows customers to withdraw cash or conduct transactions equivalent to the value of their TNM Mpamba wallets. The offering extends to various payment categories, encompassing utilities, merchant payments, satellite TV subscriptions, airtime and bundle recharges, and Person-to-Person (P2P) transfers.
This initiative aims to bolster financial inclusion, particularly for customers who have used Mpamba for 90 days, aligning with Know Your Customer (KYC) requirements. TNM Mpamba Kankhe’s safety features include PIN encryption and privacy settings.
The development underscores TNM’s commitment to utilizing mobile telecom technology to contribute to economic growth and financial inclusion. The collaboration between TNM and technology partner Huawei aims to bring transformative innovations to the telecom landscape, improving access to credit and financial services for Malawi’s citizens.