A local microfinance company has developed a loan-referencing application, known as Lora, aimed at improving transparency in Zambia’s lending ecosystem.
SIKEM Microfinance Limited Operations Manager Kennedy Sikombe said the App was designed to help money lenders and borrowers manage loans and track transactions more efficiently.
Mr Sikombe said in an interview that the App would enable lenders to view a borrower’s active loans in real time, allowing them to determine whether the borrower had obtained loans from multiple sources using the same payslip.
He explained that the App would help prevent situations where borrowers obtained multiple loans without lenders being aware of their existing financial obligations.
Mr Sikombe said the initiative was aimed at addressing the growing debt burden among Zambians resulting from multiple sources of borrowing.
“The App will play a key role in helping to prevent civil servants and other borrowers from over-borrowing due to financial pressure by restricting loans when sufficient payslip space is not available,” he said.
He said the innovation would also help combat fraud, which remained a challenge in the financial sector.
Mr Sikombe explained that fraudsters were using fake credentials and altering national registration cards to obtain loans.
“The App stores users’ details and passport-sized photographs, allowing lenders to verify identities and protect against scammers using fake credentials or altered national registration cards,” he said.
Mr Sikombe said the App would further contribute to financial inclusion by making its services accessible to users across various districts in the country, including Shangombo, Mumbwa and Nakonde, among others.
He said the App to be officially launched soon was already active and accessible to the public on the website.
