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Credit life that covers more than the loan
Reducing portfolio at risk and improving financial security of MSMEs
900+
Contexte
In sub-Saharan Africa, less than 2% of all MSMEs have any form of insurance, yet they account for over 80% of the jobs and over 50% of the GDP. MFIs, who lend to MSMEs, typically reduce their portfolio at risk via a credit life policy, which covers their outstanding loans in case of death or disability of the borrower. However, this cover is insufficient.
La solution
Enhanced credit linked insurance cover was embedded into Real People’s loans. It covers outstanding loans in the event of loss of life, disability, hospital admission and destruction of business property by fire, burglary and floods.
Les résultats
- 900+
- MSMEs insured in 9 months
- $22,000
- Claims paid
- 10%
- Increase in direct revenue for Real People