Jumia gives SMEs across Africa access to online loans
Not only do sellers on Jumia delight consumers every day with unique products, they are also generating valuable data: transaction history on sales, products, delivery speed and other useful information that can be used to secure loans.
“Jumia Lending” provides sellers access to loans from Financial institutions through a simple process. In fact, any seller with an average weekly sales of USD20 or more over the past six months is eligible with no hidden fees. Within 24-72 hours after submitting a quick application, sellers will be able to see which financial institutions have extended loan offers.
Small medium enterprises (SMEs) often find it difficult to access loans in Africa. Often, they don’t have easy access to the required materials, traditional application fees, or the types of traditional financial history necessary to complete the process.
Given the number of SMEs in Africa and their contribution to the continent's economy, this is a missed opportunity for further innovation and growth. Banks and Financial Institutions also struggle with retail lending to SMEs, as they have limited visibility into whether SMEs apply such loans to the proposed economic activity or divert them to consumption which impacts loan repayment. We solve this problem with a win-win solution for the seller and the lender.
With up-to-date information on sellers’ sales performance and loan repayment schedules, we can recommend adjustments or additional loan offers where needed. Many sellers are repeat borrowers who have successfully repaid their loans. In fact, some sellers are on their fifth loan, building a thriving business along the way.
Jumia Lending Service is operational in Nigeria, Kenya, Ghana, Egypt, and Ivory Coast in partnership with fintech lenders such as Lendigo and Phastmoney in Nigeria, Aman and Vitas in Egypt and Pezesha in Kenya.
What our sellers are saying about Jumia Lending
Boniface Kuria, a seller in Kenya, says he likes the quick application process and ability to use the loan to replenish inventory without collateral.
Rose Gakli in Kenya said, “Jumia Lending has been a great platform for my business so far. I started my business with some small savings and little knowledge on what to sell. I was able to access enough capital with Jumia Lending after selling for some time which helped me grow my business this far.” She also emphasized the no-collateral policy and flexibility from having minimal restrictions on the loans.
Through this lending service, our team contributes to an improved shopping experience; with access to loans, sellers can replenish their inventory faster, maintain product availability and diversify product listings. Learn more about the Jumia Lending Service here.
Loans and Collections Officer with Jumia Lending Team (Kenya)
I joined Jumia in 2018 as a Marketplace Intern and then moved to Jumia Lending as a Junior Loans and Collections Officer in January 2020. I interact with vendors on an almost day-to-day basis as I assist them to access our lending services as well as educating them about our services. I also maintain close relations with our financial partners to ensure they have a smooth process in the disbursement and collection of loans from Jumia vendors. I am an e-commerce enthusiast with a keen interest in assisting SMEs to grow into large companies.