Fido is shaking up the financial landscape in Uganda and Ghana with its innovative approach to digital lending. As part of the ongoing #40Days40FinTechs initiative, Fido has emerged as a beacon of hope for individuals and businesses struggling to access affordable credit.
Access to credit has long been a significant hurdle for many, with formal institutions often imposing stringent requirements like collateral and guarantors that leave countless potential borrowers in the lurch. This gap typically forces them to rely on traditional money lenders, known for their exploitative practices.
However, Fido is leveraging technology to bridge this gap, providing a more inclusive and accessible solution.
Robert Muhumuza, the deputy CEO of Fido Credit, elaborates on the company’s mission: “Fido is inspired by its customers who are striving to make a difference in their daily lives. Fido is on a mission to empower individuals and entrepreneurs to take charge of their future by providing financial services that are inclusive, instant, and easily accessible through Fido’s innovative digital products.”
Fido Credit, regulated by the Uganda Microfinance Regulatory Authority (UMRA), offers personal loans of up to UGX 1.4 million and business loans of up to UGX 2.5 million. The application process is streamlined and user-friendly.
For personal loans, customers simply submit their Know Your Customer (KYC) details, after which a credit score is generated that determines their loan eligibility.
“For personal loans, we start from UGX 60,000 to UGX 1.4 million shillings. Once your loan has been approved as per your credit score, it is disbursed and received on your mobile money number within 5 minutes,” Muhumuza explains. “A customer can choose to select the 10 days or 30 days repayment period. Interest is charged on a daily basis, so the earlier you pay, the less interest you pay.”
Business loans follow a similar process, requiring the submission of Know Your Business (KYB) details. Business owners must provide documentation that proves ownership, such as a certificate of incorporation and a trading license.
“Business loans are disbursed instantly, so if you have all the documents, you are able to get a loan within 5 minutes. The minimum amount is UGX 400,000 and the maximum for business loans is UGX 2.5 million,” he notes.
Since its inception, Fido has already served over 700,000 customers, disbursing billions in loans. This impressive track record underscores the growing demand for accessible financial services in Africa, particularly among underserved communities.
Fido’s recent success is further amplified by its recent $10 million Series B funding round, aimed at expanding its operations and enhancing its loan offerings. This investment, led by MASSIF, a financial inclusion fund managed by the Dutch entrepreneurial development bank FMO, is set to enhance Fido’s ability to support micro, small, and medium-sized enterprises (MSMEs) across the continent.
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