Digital lending or alternative lending is a catalyst to inclusive financial services for segments that are not a key target for traditional financial institutions. The use of AI-powered decisioning systems for evaluating individual credit eligibility by digital lending platforms has now become critical for micro, small and medium enterprises (MSMEs) to access much needed financing that was not previously available to them. MSMEs are the backbone of the African economy making up about 80% of all African businesses. Unfortunately, MSMEs are still grossly underserved, according to World Bank, an annual credit gap of US$340 billion exists in Sub-Saharan Africa.
It is therefore imperative to allow these crucial drivers of the African economy, to access capital and by so doing , African businesses will have the chance to expand and create better domestic opportunities for production towards capital growth and employment creation.
MSMEs in Sub-Saharan Africa require affordable, formal credit which in turn encourages small businesses to manage their finances and create flourishing businesses which can then create a improved credit worthiness. Asante Financial Services Group is a key driver in the provision of bridging finance and working capital that has seen to the increase in revenue for MSMEs in the regions it serves.
To meet this need, Asante Financial Services creates strategic partnerships that meet the MSMEs at their point of need. One such partnership is with AC Group; A Rwanda Based operator of Greater Kigali City Mass Transit System through a product called Umurabyo Loan powered by Asante Financial Services Group.
How is Umurabyo Loan powered by Asante Financial Services Group beneficial to bus company owners?
Working capital financing from Umurabyo Loan has been specifically tailored for bus company owners who need fast access to funds to support their day-to-day operations. With real-time availability of capital, a bus company can access loan sizes depending on repayment patterns and business growth. What's more, Asante Financial Services Group is offering competitive financing options, so the bus companies get the best rate possible when compared to other loan offers in the financial market. And with no collateral or security needed for this loan, bus company owners can access their finances quickly and easily without having to worry about paperwork or other hassles.
What are the key features of Umurabyo Loan?
This loan product is designed to meet working capital needs of all bus companies. With a low minimum loan amount of RWF 1,000,000 and a maximum loan amount of RWF 15,000,000, a bus company can choose the amount that best fits their budget and needs. The interest rates are competitively priced. Asante FSG rollover provision of 3 days to give the bus company owners some extra flexibility.. With Asante’s automated credit decisioning and easy repayment plans, it is easy for the bus companies to get the funds they need when they need them most; from Application to Disbursement is in <60 seconds.
The product features are tailored to make sure that bus companies get the best deal possible when it comes to taking out a loan.
The medium term plan is to extend asset finance to the companies and we are exploring discussions with both DFIs and Vehicle Manufacturers on a sustainable proposition.
Applying for an Umurabyo Loan is fast and simple:
The application process is simple, quick and convenient - all a bus company owner needs to do is download Pronto App from Asante Financial Services on Google Play Store, register and link the business with the customer code provided by AC group. After that, they can apply for the loan and make sure to repay it on time in order to avoid any overdue charges.
The goals for this partnership include:
To serve bus companies with tailor-made short-term loans.
Bus companies accessing funds to attend to business operations and overall increase in cash flow.
To give bus companies room for operation while still attending to emergency business issues.
To provide a swift solution for access to funds for bus companies.
To provide a self-service and un-collateralized funding for bus companies.
In conclusion, Asante Financial Service Group's partnership with AC Group through their client base is truly impressive. By offering access to affordable credit and working capital financing, they are helping businesses stay afloat during financially challenging times. This move not only allows the bus companies to remain operational but also helps them to grow and expand their operations. The partnership will continue to create more job opportunities, improve the economy, and ensure a better quality of life for everyone living in Rwanda. The support provided by AC Group to Asante Financial Service Group is an example of how powerful collaborations between different entities can positively impact local communities. Moreover, it serves as a reminder that when we work together towards a common goal, the possibilities are limitless.
About Asante Financial Services Group
Asante Financial Services Group’s purpose is to advance the financial Independence and well-being of Africans by empowering African entrepreneurs with the right resources for economic growth.
Asante Financial Services (Rwanda) Limited is regulated by the National Bank of Rwanda.