An Introduction to Cash Loans

November 28, 2023

In our latest series, ‘An introduction to’, we’re lifting the lid on the products that are powering access to credit across emerging markets. Today, cash loans. 

If you have yet to integrate lending products into your suite, cash loans are an ideal first step. But what do they do? How can they empower your customers, whilst also benefiting your business? And what value-added benefits can Ezra’s Cash Loans solution provide? Read on to learn more. 

What is a cash loan?

Cash loans – or nano loans – are a type of short-term lending option designed to provide quick access to funds for individuals and small businesses (SMEs). They can then pay back the borrowed amount, most often with interest, over a specified period.

Cash loans are typically unsecured, and intended for small-medium borrowing amounts.

What types of businesses can integrate Cash Loans?

Financial Institutions and Mobile Wallet Operators. 

What are the end benefits of a cash loan to the provider?

  • Drive acquisition and retention: Cash loans can be designed with short tenures, to better align with the income cycles of your customers, for greater convenience.
  • Future-focused: Because cash loans are an ideal first step, they also help to lay the foundations for expansion into further lending products. 
  • Increase liquidity with future-focused solutions: Cash Loans enable you to benefit from more direct and indirect revenue streams, such as transaction fees.

What are the benefits of a cash loan to the end user?

  • Greater financial inclusion: Cash loans are the ideal introductory lending product for customers in emerging markets. They are also an ideal way to prepare financially underserved customers for more advanced loan products and services – even in regions where financial literacy is an issue – thanks to their simple pricing structure. 
  • Greater peace of mind: From application to approval and disbursement, the cash loan process is fast and straightforward. Help your customers to cover unexpected costs, with instant payouts when they need them the most.
  • Less collateral, less hassle: With cash loans, minimal KYC and paperwork are required. This means less bureaucracy and fewer delays, but with the security of a traditional loan - read on below to find out how. 

Why partner with Ezra?

  • Greater market penetration, for better reach: Because we leverage alternative data in our scoring, we can accurately profile more people in more places - whether or not they have a credit history. This helps more people to access fast and secure lending, and helps you to hit your financial inclusion goals.
  • Proprietary scoring, for better results: Our robust scoring engine harnesses the combined power of this alternative data and machine learning, to adapt to the shifting financial landscape and consumer behaviour.
  • Simple customer journey, for a better user experience: Build customer trust lending products designed to be simple and transparent. We ensure that our Cash Loans follow simple pricing structures so that your customers know exactly how much they’re borrowing, what the interest rate is, and when payment is due.
  • Streamlined delivery: Our straightforward design, development, and launch process means that our products are ready to launch in as little as 12 weeks.
  • Fully bespoke solutions, tailored to your business: Expand market penetration, boost acquisition, and increase liquidity, with straightforward solutions which can be adapted to your customers' needs. 
  • Low-risk, high-reward: At <3%, Ezra has one of the lowest bad debt rates in the industry. We can also carry the risk - so, more opportunities for you, with less headaches.

What does this look like in practice?

We have partnered with some of the world’s leading Financial Institutions and Mobile Wallet Operators, to bring Cash Loans solutions to their customers. Take a look at our work with MPesa here

When it comes to speed, convenience, and flexibility, cash loans are the ideal lending solution to incorporate into your suite. And a partnership with Ezra allows you to build fully bespoke products which seamlessly and securely meet the needs of your consumers - whenever and wherever they are. 

This ultimately means more financial opportunities for your customers, and more growth opportunities for your business.

To learn more about our Cash Loans solution, visit our dedicated page. 

If you would like to speak to a member of our team about our lending products and solutions, please contact us today. 

Speak to our partnership team