Knowledge

Author: Ollen Machimbirike

Category:

Date: 1 August 2016

RenMoney Introduces new Education Loan

renmoney
RenMoney, a leading Nigerian inclusive lender, is launching a new education loan product, specifically tailored to fund school fees payments by their customers. The education loan product will deploy funding raised by Verdant Capital, as well as RenMoney’s existing resources.
RenMoney, like many unsecured lenders in Africa, is aware that a significant part of its customer base use their loans for purposes of school fees, such is the importance placed on education by parents across the continent. The tailored school fees product will go one step further: the loans will be repayable by parents but will be disbursed directly to the schools who have signed up to the scheme. The overall initiative has a number of benefits including:

  • schools will direct parents who need credit to RenMoney,
  • the designated use of proceeds, and the increase in client contact through the school will reduce the credit losses, and this will be passed on to the parents in the form of lower interest rates, and
  • the designated use of the proceeds is expected to help RenMoney raise the additional funding for this purpose.

RenMoney is headed by Graham Lee (former Head of Credit Risk and Operations of Capitec) and was established in late 2012. It is licenced by the Central Bank of Nigeria as a microfinance bank and it has a total balance sheet in excess of NGN 3 billion, making it one of the largest unsecured lending institutions in Nigeria.

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