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ECONET Wireless said yesterday it is working on a scheme to allow subscribers signed up to its banking facility, EcoCashSave, to borrow money from partner banks. The facility would be run under the name EcoCashCredit. Barely two months old, EcoCashSave is a new facility under Econet’s money transfer product EcoCash, which allows subscribers to open and save money through a bank account operated by banking subsidiary, Steward Bank.
Launched in early October, EcoCashSave – at 900 000 users – already has more accounts than the entire banking sector, which has around 850 000 accounts.
The overwhelming response has been due to the “no bank accounts charges and a four percent interest per annum on deposits” policy which EcoCashSave is offering to account holders.
Econet Wireless boss Douglas Mboweni said the institution was working on a scheme that would allow account holders to borrow money. “EcoCashSave account holders will soon be able to also borrow money, just like ordinary bank account holders. This is part of what will be called EcoCashCredit that Econet is planning to roll out early in the New Year,” he said.
While finer details on the amounts of money that will be offered for borrowing and interest rates under EcoCashCredit are not yet known, Mboweni said the credit facilities would be for paying school fees, housing loans and other commitments.
He said the borrowing will be done through partner banks, including Steward Bank.
Most bank account holders in the country are struggling to get loans from banks owing to the prevailing cash crunch.
High interest rates have also prevented account holders from borrowing and it is still to be seen if EcoCashCredit will provide an alternative. – New Ziana.
Online Reporter