Wegagen Bank, in partnership with Kifiya Financial Technology, has launched a new digital loan service, ‘Efoyta.’ Powered by Kifiya’s Qena, an intelligent financial services platform, ‘Efoyta’ aims to address the working capital needs of MSMEs.
The announcement was made on July 22, 2024, during a formal launch event held at the Planet Hotel in Mekelle, Tigray region, where Wegagen has a strong presence and plans to deploy the majority of its allocated digital lending capital.
The Efoyta digital loan service will offer loans ranging from 5,000 to 50,000 birr. Currently, two types of loans are active on the app. Efoyta Wase offers loan amounts from 500 to 15,000 birr, with a repayment period of up to one month. A 2% access fee and a daily interest fee of 0.95% are attached to the terms. These loans are open to every Wegagen customer.
Meanwhile, Efoyta Melegna targets women informal sector workers and offers amounts up to 5,000 birr. It has a duration of one month with no access fee. This loan type has an interest rate of 3.75%.
While Shega was unable to receive a formal response, it has learned that the high interest rates for Efoyta Wase, which could reach up to 28% per month are due to the bank just entering the digital lending scene and that these rates could change over time.
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