Diamond Trust Bank (DTB) has partnered with Safaricom to offer loans to SMEs that use Lipa na M-PESA to accept payments.
The new product is called Taasi Till Loans and it will enable merchants with Safaricom till numbers to access business loans. Taasi Till is a business loan that offers short-term loans that range between Ksh. 1,500 to Ksh. 250,000 depending on eligibility.
To be eligible for credit for a Taasi Till loan, businesses have to have Lipa na M-PESA accounts for more than six months. After approval, funds are deposited directly into the user’s M-PESA wallet with a repayments period of 14 days.
Businesses will be able to repay their loans recovered when there’s inflow on the till to allow business continuity. The loans are available through the M-PESA Business App or USSD *234#.
DTB Managing Director and CEO Murali Natarajan said: “At DTB, we are keen to play our part in unlocking the development of MSMEs across the country. Through this partnership, we aim to extend a much-needed credit line to these small businesses, which often need quick and short-term credit as the lifeline of their daily operations.”
The product has gone through a pilot phase with various Lipa na M-Pesa merchants, where over 23,000 merchants have opted into the credit facility with over Ksh. 135 million borrowed at an average of Ksh.17,500 per customer.
“Businesses play a pivotal role in Kenya’s economy and make a significant impact in our communities. Leveraging the power of technology Taasi, will offer convenience and access to credit for MSMEs, allowing them to focus on scaling their businesses,” said Dr. Peter Ndegwa, Group CEO, Safaricom PLC.
Safaricom simultaneously launched other loan products for SMEs in partnership with KCB Group and Sidian Bank. Fuliza Biashara will enable businesses using Lipa na M-PESA to access multiple loans from a minimum of Ksh. 1,000 to Ksh. 400,000 based on their limit. For businesses using Pochi la Biashara, Taasi Pochi will offer loans ranging from Ksh. 1,000 to Ksh. 250,000.