PostBank Uganda Ltd and MoMo from MTN UG have introduced XtraCash, a digital micro-lending solution that provides short-term loans to MTN mobile money subscribers in Uganda.
The initiative is designed to offer financial assistance to approximately 13 million mobile wallet holders nationwide, addressing the growing demand for accessible credit, particularly among underserved and unbanked communities.
XtraCash allows eligible MTN MoMo users to quickly check their maximum loan limit through the MTN MoMo App or dial 1655#. Individuals must be active MTN MoMo users for at least six months and over 18 years old to qualify.
This collaboration builds on the previous success of Wendi, a mobile wallet introduced by PostBank and MTN MoMo to facilitate government fund disbursements. With only 10% of Ugandans having bank accounts while 53% use mobile money, initiatives like XtraCash are crucial in bridging the gap between traditional banking services and most unbanked individuals.
Julius Kakeeto, Managing Director of PostBank Uganda, emphasised the importance of partnerships in achieving their vision of fostering prosperity for Ugandans through financial inclusion. Richard Yego, Chief Executive of MTN MoMo, highlighted the product's potential to improve livelihoods and support businesses by making micro-loans easily accessible.
