Boda boda financing empowers thousands
Some of the beneficiaries of motorcycle loans in Kampala. PHOTO/COURTESY
What you need to know:
- Motorcycle financing offers riders the opportunity to become owners of their motorcycles; to own assets that they would normally rent for indefinite periods of time.
A number of unbanked and underserved Ugandans are increasingly getting boda boda (motorcycle) loans to acquire motorcycles to generate an income.
They repay the loan using money generated by the same motorcycle they get from some financial institutions and organisations such as Watu, Tugende and World Vision, among others, that are focusing on empowering youth and Ugandans with limited access to financial services. Mr Nathan Kakaire, a businessman in Jinja District, says he got a motorcycle on loan from Watu Credit Uganda a couple of years ago and has since acquired three motorcycles that earn him some good daily income.
“From my first loan up to the current active loan, I have never been harassed. Even when I am in arrears, the customer care people have always spoken to me in a nice way and have been patient with me all through. They give me a lot of attention whenever I have some issues and they handle them very well and understand my problems,” Mr Kakaire said at the weekend.
He adds that from his motorcycle loans, he has been able to purchase land. He is currently constructing a residential house in his home village.
“I recommend a lot of boda boda riders to Watu because of the simplicity in the loan processing system that allows them to acquire a loan on the very day they come to the branch,” he added.
Motorcycle financing offers riders the opportunity to become owners of their motorcycles; to own assets that they would normally rent for indefinite periods of time.
The Covid-19 pandemic led to increased unemployment and getting a motorcycle on loan gave people the opportunity to earn a daily income and provide for themselves and their families.
With a minimum down payment of Shs900,000, one can get a boda boda on loan from Watu within just 2 hours. They also offer flexible payment terms of up to 24 months and the loan also includes comprehensive insurance coverage for the first year.
Many riders are able to earn an income from boda boda that allows them to improve their overall quality of life by building homes, paying school fees and so on, while others use the boda boda earnings to start additional businesses and increase their total income.
Mr Jospeh Sseguya, another boda boda rider in Jinja, adds: “Boda financing has helped me to grow and expand my businesses further because it is the bikes I acquired on loan that help to ease transportation of my eggs to the different points of sale. I have been able to open up multiple shops through the loans and I even employ people in my businesses.”
