Why Pay Later Gives Loan To People Who Can Pay-Uku

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Why Pay Later Gives Loan To People Who Can Pay- Uku
By Josh Babatunde
Product Manager of Pay Later,Henry  Uku disclosed that Pay Later , a mobile application for mobile lending service only gives out loan to those that can repay it.
He explained that the app provides loan from seven thousand Naira to a million naira across Nigeria seven days a week.
Speaking to Gtechnews recently, Uku explained that the platform lends small money to people as the case may be.
“What we do is offer small loans to people for their businesses, pay fees,rents among other payments. We are also planning to reach out to more Nigerians  through what the Small and Medium Enterprise ,SME is providing on Facebook for us to scale through among different markets.
On synergy between government and the private sector to develop SME, he disclosed that it boils down to regulation.
“With us, we are being regulated by the Central Bank of Nigeria (CBN) who have also put in a lot of policies to help our business. An example is the BVN to help us identify people, prevent fraud and it helps the business to grow. The synergy between government and the private sector provides encouragement to the Government that changes with the way we do business. When you have Government that are receptive to that and regulation that are friendly and i think it would help everybody.
“Our service is quite simple,you download the pay Later application from the Google playstore, register and fill out an application that takes between three to five  minutes, we make an instant loan decision in 15 seconds if you are approved you get funds in your account  within a minute”.
Uku also pointed out that there is a partnership between Pay Later and interswitch on short code.
“Interswitch started the lending with us as a loan provider and users can dial these shortcodes:   *565# or *322*6# to access paylater through interswitch.
“On loan repayment,the first thing that we do actually when we give out loans, our systems are able in real time to detect likelihood if the person is capable to repay or not and that decides our lending decision. In most cases,we give out loan to those we are significantly sure of them repaying. We also give out financial study if you are unable to payback the loan”.
However, a reviewer ,Philip Odum said that despite the hype, the app has not functioned optimally as expected, while disclosing that it recently had its challenges of down time.
“I filled all online applications and deliberately applied for N20,000, only for the system decison to highlight N7,500 as what it would pay and an extra of over N1,000 as interest. It shows, they are not ready for business, “he said.

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