The process of obtaining a loan is filled with paperwork and back and forth to the bank or microfinance institute. eShagi is a fintech that promises instant loans made through a 100% online process.
What is eShagi?
eShagi is a Fintech that claims to be different from banks and microfinance companies. How? ‘Or’ What? They offer “a hassle-free way to access affordable credit and the freedom to spend when and where they want”.
The eShagi websites indicate that the service is currently available in 4 countries; Zimbabwe, Zambia, Malawi and South Africa.
eShagi currently offers 3 separate credit services;
- EShagi Salary Loan – This loan has an interest rate of 12% per month and a term of 1 to 24 months. The minimum amount you can borrow is ZW $ 1,000 with an unlimited maximum amount (determined by your creditworthiness of course);
- EShagi store credit – Interest rates, terms and amounts are similar to salary loan. The difference between loan and store credit is that store credit can be used at a specific store across the country. eShagi says the credit can be used up to $ 1,000 locally.
- EShagi recharge credit – You can borrow for ZW 100-1000 prepaid electricity or airtime and pay later. The loan has an interest rate of 15%, with a term of 7 to 30 days and
To be eligible for these loans, you need the following;
- Over 18 years old and resident of Zimbabwe.
- Full-time employment in the public or private sector.
- Receive salary or other income through a bank account.
- Not on an active blacklist, bankruptcy, or the like.
The loan application process looks pretty straightforward if we follow the instructions on their site. You can apply on the site or via WhatsApp (text Hi Thandie to 0715069167). You will need to share your ID, payslip, and payment information. Once this process is complete, eShagi says you will get pre-approved in under 30 minutes.
Once you have passed the final approvals phase (the website does not specify how long this takes) then you will receive a payment to your bank account. We asked the founder of eShagi, Mr. Munyaradzi Gwatidzo, how the 30-minute pre-approval differs from the final approval.
Pre-approvals mean KYC documents can be checked and approved before someone applies for a loan, while final approval occurs when a customer’s creditworthiness is assessed, credit limit, and loan application. are met.
While with “30 minute approvals,” the reality is that you probably won’t have any money in your bank account in that time slot.
In our discussions with Munyaradzi we also talked about their traction since launch and he said that to date they have registered 50,000 clients with a 10% loan conversion and an average loan size of 20,000. ZW $ and US $ 500 in other markets.
Mr. Gwatidzo also shared that eShagi is currently recruiting 1,000 merchants, which will give people the option to apply for loans at these stores or through the web or WhatsApp.