KAMPALA, UGANDA – Furaha, a financial technology company, has launched a groundbreaking platform that enables parents to access loans to pay for their children’s school fees.
In partnership with School Pay and financial supporting institutions like credit reference bureaus, Furaha’s platform uses data analytics to build a profile of customers’ creditworthiness and determine their credit score.
“We’re excited to provide a convenient and flexible solution for parents to pay for their children’s education,” said Denis Musinguzi, CEO of Furaha. “Our platform is designed to make it easy and accessible for everyone.”
The process is quick and easy, with customers simply needing to provide their national ID number, take a scan of it, and take a selfie. Furaha then provides a credit limit, which can be used to pay for school fees in weekly or monthly installments.
Furaha’s platform also offers a competitive interest rate of 5% per month, valid for three months, and a loan processing fee of 3% of the loan value. There are no penalties for early repayment, and customers can pay back the loan in installments.
“Education is key to unlocking opportunities, and we’re committed to making it more accessible to everyone,” Musinguzi said.
Ian Fernandes, Founder of Furaha told reporters that partnership aims to provide parents with easy access to loans to pay for their children’s education, eliminating the need for lengthy paperwork and cumbersome payment processes.
“We’re not just about providing loans; we’re about transforming the lending process into a joyful experience. We’re committed to putting our customers first and making education more accessible to everyone,” he said.
Furaha’s mission is to “enable positive education outcomes for 10 million children across Africa over the next five years.”
According to Osbert Muganga, General Manager of School Pay, the impact of unpaid school fees is far-reaching, affecting not only the child’s education but also the school’s survival and the entire economy.
“When a child is sent home from school due to unpaid fees, it has a ripple effect on the entire economy,” Muganga said. “The child’s education is disrupted, and they may underperform in exams. The emotional torture of being sent home can also affect their self-esteem and motivation.”
The partnership between School Pay and Furaha aims to address this issue by providing financing options for parents, enabling them to pay school fees on time and keep their children in school.
“By providing financing options for parents, we can help keep children in school and ensure that they receive the education they deserve,” Muganga said. “When a child stays in school, they are more likely to succeed and contribute to the economy in the long run.”
The partnership is expected to benefit millions of students across Africa, particularly in Uganda, where School Pay has already enabled digital payments for over 14,000 schools.
