By Damalie Nankya
Asking family and friends remains the preferred way for most people to get quick cash, rather than go through the lengthy process of applying for a bank loan.
Much of this credit is for emergencies that require quick money, including medical bills, school fees and utilities among other personal needs.
Usually processing a bank loan can take between one and six weeks for a bank to evaluate and decide on a client’s application. Some banks may take a shorter period depending on the kind of facility the client wants.
However, in desperate time’s borrowers resort to money lenders which isn’t the wisest option. They are unregulated and this also means they can charge exorbitant rates which may cripple the borrower and in the long run leads to them losing their collateral.
Stanbic Bank’s Instant cash
Stanbic Bank Uganda recently carried out a survey that confirmed customers most often require money to pay for a pressing domestic expenditure.
From these findings, the bank has come up with the Instant Cash Advance solution that can be accessed physically from Stanbic Bank’s Mobile and Online Banking platforms or from any of their branches.
The Instant Cash Advance is a 30-day short-term cash overdraft offered to Stanbic Bank customers available on Online Banking and Mobile Banking(*290#).
The money can be used for emergency personal expenses like, paying school fees, urgent medical bills, car repairs, fuel and the like.
The product allows customers to access a pre-approved limit of between Ugx. 140,000 and Ugx. 2 million.
The bank does not charge an interest rate, but rather a service fee of 7% is deducted upfront and the loan is repayable within 30 days.
The writer is the Head of Lending products at Stanbic Bank Uganda