Post Bank shakes up small loans business

MASERU – THE Lesotho Post Bank will this week launch a mobile wallet application that gives customers access to small interest-free loans.
Known as Khetsi, the application allows users to borrow a maximum of M500 from a facility called Nano loans.

The bank said customers will only pay a nominal administration fee.
Molefi Leqhaoe, the bank’s managing director, said Khetsi will promote financial inclusion, access to finance and financial literacy.
The Lesotho Post Bank was established by the government to cater for people without access to financial services, the same group targeted by Khetsi.

Leqhaoe said apart from helping the bank fulfill its legal mandate to provide financial services to the low-income group, the application will also enhance customer experience.
He said even those who don’t have accounts with the bank can get the loan as long as they have the Khetsi App.
Leqhaoe said the application’s main objective is to help people running small businesses and those in remote areas get loans.

“It can be used to withdraw money from an agent, branch or ATM without a card, pay bills, merchants, save and secure loans of up to M500,” he said.
He said the bank is aware that sometimes individuals find themselves in emergencies and in need of money hence most end up going to loan sharks to get it.

“So with the Nano loans we are trying to decrease the rate at which individuals approach loan sharks for loans that are paid with high interests.”
Leqhaoe said he believes the application could be a “game changer” for vendors.
“Sometimes all they want to do is to buy a box of apples and pay back the loan in the evening so this facility will allow them to get money for their stock and return it without interest.”

Staff Reporter