KARACHI: Haaris Mahmood Chaudhary, CEO of Mobilink Microfinance Bank, highlighted the transformative impact of digital loans offered through JazzCash, emphasising their critical role in promoting financial inclusion and supporting microentrepreneurs, a statement said on Wednesday.
JazzCash issues over 140,000 loans daily. Notably, around 25 per cent of these loans are extended to women, underscoring the platform’s commitment to empowering underserved segments of the population. Explaining the unique nature of these products, Chaudhary said that digital loans are designed to offer short-term credit, ranging from just 1 day up to a maximum period of eight weeks, but these loans are usually for very short durations — sometimes only 5 to 7 days.
The loan comes with a low, non-compounding weekly fee, which remains unchanged throughout the 8-week period. Once the loan reaches the 8-week mark, the payable amount remains constant and unchanged. This means that customers must pay back the same amount regardless of how much time has passed. Through ReadyCash service, customers can confidently enjoy the benefits of a short-term loan without worrying about escalating costs. In partnership with EFU Life Assurance, JazzCash also offers free life and health insurance for nano-loan customers borrowing Rs6,000 or more. This initiative redefines responsible lending practices and ensures that individuals and families have access to essential protection, safeguarding their financial future. With complimentary life and health insurance, customers are covered for unforeseen macroeconomic shocks.
Chaudhary stressed that digital loans fill a crucial gap in the financial ecosystem. “Before these formal financial products, many individuals had to rely on informal lenders who were often not transparent with their terms and conditions.” He added that nano loans offered by credible digital financial service providers offer a dignified, respectful alternative. Borrowers can access quick credit through mobile apps, repay on time, and maintain their self-respect. This is true financial inclusion.
