Qwikloan Disbursements Record Circa 500% Surge to GHS 2.8bn in First Half of 2024
Letshego Ghana has reported a substantial surge in its mobile loan disbursements (Qwikloan), reaching GHS 2.8 billion in the first half of 2024.
This represents an extraordinary 498% (approximately 500%) increase compared to the GHS 476.5 million disbursed in the corresponding period of 2023.
This was disclosed by Sam Donkor, Chief Commercial Officer of Letshego Ghana during the company’s half-year performance presentation at the Ghana Stock Exchange’s (GSE) Facts Behind The Figures event on Wednesday, July 31, 2024.
The significant growth in disbursements, which benefited over 6.5 million customers, underscores the expanding reach of Letshego’s Qwikloan product.
The breakdown of loan utilization reveals that 37% of borrowers directed funds toward business activities, 24% for tuition fees, 15% for emergency situations, and 8% each for bill payments and medical expenses.
Mr. Donkor emphasized the dual impact of the Qwikloan product, highlighting both shareholder value and substantial contributions to financial inclusion.
He pointed out that additional access to cheaper funding sources would further enhance the product’s reach, particularly in rural areas that remain underserved by the formal financial sector.
“The Qwikloan product is not only providing value for shareholders but is also impacting and touching lives and if the company were to get cheaper funding sources, it would really be helpful and impactful for customers in rural areas who are mostly excluded from the country’s formal financial sector,” he quipped.
Cumulatively, Letshego’s Qwikloan product has disbursed GHS 18.8 billion to date. The Qwikloan constitutes 60% of Letshego Ghana’s portfolio mix, with the remaining 40% accounted for by Deduction-At-Source (DAS) loans.
Available via MTN Ghana’s mobile money platform, Qwikloan facilitates easy access to short-term, small-scale credit, empowering customers to build credit histories through responsible loan repayment practices. This approach aligns with Letshego’s commitment to enhancing financial inclusion and supporting sustainable economic ventures in Ghana.
Customers who demonstrate responsible loan repayments, unlock access to more capital, ultimately enabling Ghanaians to fund more productive and sustainable ventures.
