As of April 1, 2020, Letshego Uganda rolled out a Repayment Holiday facility to its borrowers who are worst hit by the coronavirus pandemic that has gripped the world. A repayment holiday involves giving a customer a three-month moratorium – meaning they will not be required to pay their instalments during that duration.
Different Heads of States, in their response to the pandemic, have implored the business community to augment government initiatives to offer financial relief to their customers and specifically lenders to offer repayment holidays and loan restructuring to their customers. It is in this regard that Letshego Uganda; a subsidiary of Letshego Holdings, a premier financial services company based in Botswana and with a footprint in 11 African countries has adhered to the call.
“The Repayment Holiday allows you to take some time out from the financial burden of repayments. It is important, however, to note that this holiday mainly targets those customers whose businesses have been affected by government intervention measures during the current COVID-19 through business lockdown and closure, for example, those in sectors like education, tourism, transport, leisure and hospitality,” Aijukwe Giles, the CEO of Letshego elaborated.
The employees/clients that belong to these sectors will apply for the holiday and be approved based on the case presented. The biggest positive about a repayment holiday is that it relieves some pressure for a while. For a period of time, you have one less thing to worry about when considering outgoings.
“In line with their operational mandate, Letshego practices responsible lending and acts in a customer’s best interests, ensuring affordability, transparency of terms and conditions as well as supporting the borrower if they experience repayment difficulties. This means that by the time they have approved your loan application, they’ve made the effort to determine whether you can repay without substantial hardship,” Aijukwe affirmed.
Letshego has designed a simple application form to be signed by the customer; that will then be scanned and sent to the branch. Customers are also encouraged to use digital and online platforms (WhatsApp and web application forms) to apply for these holidays. Furthermore, the repayment holiday is not only being extended to those in Kampala only but countrywide where Letshego has a presence.
Aijukwe added, “A list of qualifying customers has been generated across our 45 branches countrywide and our branch teams are reaching out to them. Customers who are not yet contacted are encouraged to contact their respective branch managers and relationship officers to confirm if they qualify for the Repayment Holiday.”
Microfinance institutions were developed with the common purpose of contributing to the socio-economic changes of communities. As evidenced on numerous occasions, Microfinances have exponentially uplifted the economic status of people by providing credit to individuals and skill-based groups so that they are able to better their family and community stand.