UNIFI, a South African microfinance company, has officially launched its services in Uganda, joining a list of 950 registered companies offering financial services in the country.
Michael Boden, the Country Manager Unifi, says they hope to change the future of credit in Uganda, by cutting down on the long process and queues associated with getting loans.
Unifi currently operates in South Africa, Zambia and Tanzania. So far, there are 950 institutions giving loans to Ugandans.
The institution has introduced instant and online unsecured loans to the Ugandan market to support individuals affected by COVID-19.
Boden adds that they intend to have a fast, and easy application online in as quick as 20 minutes.
Boden also said they will provide flexible repayment plans with an affordable interest rate of 16 per cent for first-time borrowers, and as low as 8 per cent for clients with good credit history per year.
The loan facility is intended to help Ugandans struggling during the COVID-19 access credit, but also for workers to get advances and complete businesses.
Several Ugandans have been affected by the COVID-19 lockdown measures and have relied on support from microfinance institutions and banks among others to rescue their business.
Speaking at the launch of UNIFI, Rachel Vanesa N. Muhwezi, the Manager Microfinance Institutions, Uganda Microfinance Regulatory Authority, asked financial institutions to provide fast and unsecured loans to individuals affected by the Covid-19 lockdown.
She says that small lenders play a big role in bringing numerous benefits and access to business opportunities and services especially instant loans without security.
The outbreak of the pandemic and the ensuing lockdown of movement and operations led to a drop in both the demand and supply of goods and services.
In turn, this has negatively affected the revenues of businesses and individuals and their ability to service their loans.