MOMO loan not free money — BoG

From the moment mobile money (MOMO) credit was introduced by the telecom organizations (telecoms), a portion of their clients enjoy taken unjustifiable benefit of the opportunity.

While some have taken the credits to begin or reinvest in their organizations, others have gotten to the assets and abused them, consequently their inability to pay.

To keep the telcos from following them, they have quit usage of their SIM cards in their mission to stay away from recognition.

It isn’t yet clear how much the telcos are owed yet sources say it is in a large amount of Ghana cedis.

The Bank of Ghana (BoG) has therefore prompted the people who have defaulted on their moble money credits to try to compensate to their benefit.

The bank said the vast majority were of the view that they could pull off the mobile money loan by disposing of their SIM card after taking the credits.


The Head of Credit Reporting Unit of BoG, Godfred Cudjoe, said every one of those owing mobile money credits had their details with the Credit Reference Bureau “and this could affect you in the future when you badly need a loan.”

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He said individuals shouldn’t believe that a mobile money loan was free cash and that they could move away by getting and discarding their SIM cards.

As per him, any individual who took a mobile money loan has their data with the Credit Reference Bureau which tracks individuals’ credit value.

Talking at a financial literacy workshop coordinated for staff of the Ghana Immigration Service in Kumasi, Mr. Cudjoe said every one of the banks does its investigation at the Credit Reference Bureau on their clients prior to extending a loan term.

This, he said, was to guarantee that the individual taking the credit didn’t have a record of defaulting in installment.

He said assuming it was noticed that one had defaulted in the reimbursement of their past loans, this could influence one’s capacity to get new credits.

On investment, Mr. Cudjoe requested that the members conduct thorough background while putting away their cash with any monetary establishment and not to be influenced by what he depicted as the mouth-watering returns being presented by those organizations.

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He requested that they be careful about any speculation organization that would offer returns higher than the market normal or the Treasury bill rate.

“The higher the returns, the riskier the investment,” he said.

He said the training has become essential following the protests got by the bank throughout the long term.

As indicated by him, the insights showed that security organizations have been the victims of most Ponzi conspires and said that it may be expected due to their absence of information about the financial area.

The workshop was to teach the attendees the different sorts of banks and furthermore to introduce the staff to their freedoms as well as certain limitations while dealing with monetary organizations.

He spoke to the members and Ghanaians, to attempt to argue their premium on their loans as a way of cutting down the loan cost in the country.

As per him, clients reserve the option to negotiate the interest rate and trusted that in the event that clients began practicing this right, it could drive loan costs down.

The Ashanti Regional Accountant of the GIS, Chief Superintendent Joshua Mensah Ayettey, was appreciative to the national bank for coordinating the workshop for them.

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He said the training has been a revelation for them as it had shown them new things and explained some of the practices in the financial area to them.

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