Renmoney Launches Loan Initiative for MSMEs

Hamid Ayodeji

A new financial initiative that approves loans as much as N4 million to small and medium scale enterprises (SMEs) has been launched by Renmoney, a financial tech lending company.

The new financial technology loan initiative allows SMEs to apply for loans through the lender’s website; with interest rate as low as two per cent.

The company also said it offers market-leading rates on fixed deposits and savings accounts as it plays a role in solving credit challenges for medium and small scale enterprises.

The Chief Executive Officer, Renmoney, Oluwatobi Boshoro, disclosed this during a media briefing with journalists in Lagos.

Boshoro said: “We have tested and iterated this product extensively for almost six months, reviewed over thirty thousand applications and issued over six thousand loans.

“We are convinced this product will go a long way in making financial inclusion meaningful for these business owners, while contributing to the growth of Nigeria’s economy. ‘’

She also explained during the media briefing that the company’s core objective was to solve the credit challenges its customers face. This, she said had resulted to a 112 per cent increase in the value of loans approved for businesses, with a 38.5 percent representation of female customers.

Boshoro added: ‘’We have learnt a lot from this segment and used the knowledge to develop our score cards and algorithms, ensuring we continue to make responsible lending decisions.’’

On his part, the Chief Marketing Officer of the company, Khade Idogbo said, “Charging a fraction of the MSMEs earnings for its monthly repayment and as low as two percent interest rates; we look at the income history of the businesses before concluding on repayment rates.”