Myloan Limited

In Lesotho's evolving financial landscape, Myloan Limited has emerged as a prominent digital lender, specifically designed to serve segments often overlooked by traditional banks. Since its establishment in 2018, this Maseru-headquartered company has focused on providing unsecured micro- and small-enterprise loans, leveraging a fully digital platform to reach clients across all ten districts of the Mountain Kingdom. As a financial expert reviewing options for Basotho, understanding Myloan Limited's offerings is crucial for those seeking accessible credit.

Understanding Myloan Limited: A Digital Lending Pioneer in Lesotho

Myloan Limited operates as a Tier-II, credit-only microfinance institution, a classification that signifies its role in providing credit without accepting deposits. The company is duly licensed under the Financial Institutions Act 2012 and the Financial Institutions (Credit Only and Deposit Taking Microfinance Institutions) (Amendment) Regulations 2018. This licensing ensures strict regulation by the Central Bank of Lesotho, providing a level of oversight for consumer protection. Headquartered in Maseru, Myloan Limited employs an estimated 11 to 50 individuals, contributing to local employment and economic activity. While specific ownership details are not publicly disclosed, the company maintains a strong leadership team, including Managing Director Tjale Maila and General Manager Seipati Blessing Lebatsi, who steer its strategic direction.

The core mission of Myloan Limited is to financially empower underserved populations. This includes a broad spectrum of clients: underbanked individuals and groups, public servants, private-sector employees, tertiary students, and small- and medium-sized enterprises (SMEs). By focusing on these segments, Myloan addresses a critical gap in financial inclusion, offering a path to credit for those who might otherwise struggle to access formal lending channels. Their business model prioritizes accessible and affordable credit through simplified digital application processes, a clear advantage in a country where physical banking infrastructure may not reach all remote areas.

Loan Products, Terms, and the Application Journey

Myloan Limited's primary offerings revolve around unsecured micro- and small-business loans. While specific product names and detailed parameters are regarded as proprietary and are not publicly disclosed on their website, the overarching aim is to cater to the diverse needs of their target market.

Loan Structure and Financial Details

• Loan Amounts: The exact loan amounts, whether in local Maloti (M) or equivalent, are not publicly specified. Potential borrowers will need to inquire directly or proceed with an application to determine eligibility and available amounts.
• Interest Rates and APR: Crucially, Myloan Limited does not publicly disclose its interest rates or Annual Percentage Rates (APR). For context, the average prime lending rate in Lesotho stood at 11.25% as of December 2024. While Myloan's rates are likely to be competitive within the microfinance sector, they remain unverified. Borrowers should always ask for a clear breakdown of all charges before committing to any loan agreement.
• Loan Terms and Repayment: For individual microloans, typical durations in the industry range from 3 to 12 months. Loans for SMEs may extend over longer periods. Repayment is structured through convenient monthly installments, which can be made via bank transfer or mobile money, reflecting the increasing adoption of digital payment solutions in Lesotho.
• Fees Structure: Details regarding origination fees, processing fees, or late payment penalties are also not publicly disclosed. It is imperative for applicants to obtain a comprehensive understanding of all potential costs associated with their loan.
• Collateral Requirements: A significant advantage for many borrowers is that Myloan Limited's loans are unsecured. This means no collateral is required, making credit more accessible for individuals and small businesses that may lack tangible assets to pledge.

The Application Process

Myloan Limited offers multiple channels for loan applications, blending digital convenience with a physical presence.

• Digital Channels: Applications can be initiated through their mobile-responsive website, myloan.co.ls. The company also plans to launch a dedicated client mobile application, which, when available on iOS and Android stores, will further enhance the digital experience.
• Physical Branch: For those who prefer in-person interactions or require assistance, Myloan Limited maintains a branch in Maseru, located at Kingsway Mall Arcade, Room 2.

Standard Know Your Customer (KYC) and onboarding requirements, in line with Central Bank of Lesotho regulations for microfinance institutions, include:

• A valid National ID or passport.
• Proof of residence.
• Verification of employment or income.

Myloan employs a proprietary risk model, integrated into its Musoni core banking system, for credit scoring and underwriting. This system combines both on-platform and off-platform data to assess creditworthiness efficiently, aiming for instant evaluations. Approved loan funds can be disbursed through various methods, including bank transfers to customer accounts, mobile money disbursements via local networks, or even cash disbursements directly at the Maseru branch.

For collections and recovery, Myloan utilizes automated repayment reminders via SMS or their app. Field officers visit accounts with overdue payments, supported by a Digital Field Application. In cases of non-performing loans, third-party recovery agents may be engaged, aligning with standard industry practices for debt recovery.

Myloan's Digital Edge and Market Standing

Myloan Limited has made significant strides in leveraging technology to enhance its operations and reach. In 2021, the company adopted Musoni System's cloud banking solution, which underpins its digital capabilities. This platform enables instant digital loan origination, boasts open APIs for seamless third-party integrations, and supports field operations through a mobile data collection application, allowing staff to serve clients effectively even in remote areas.

Technology and Reach

While a fully-fledged client mobile app is currently in development via the Musoni client banking app module and not yet available on public app stores, Myloan maintains a robust digital presence through its website (myloan.co.ls), which serves as an application portal. The company is also active on social media platforms like X (formerly Twitter) under @MyloanLimitedx and has a presence on LinkedIn. Although its physical branch is in Maseru, the digital channels ensure that Myloan can extend its services across all ten districts of Lesotho, making financial services more accessible nationwide. Myloan is estimated to serve several thousand active borrowers by 2024, with growth primarily driven by its efficient digital onboarding processes.

Regulatory Compliance and Market Position

As a Tier-II Credit-Only Microfinance Institution, Myloan Limited operates under the stringent oversight of the Central Bank of Lesotho. The company is fully compliant with the Financial Institutions Act 2012. There are no public records of any regulatory penalties or enforcement actions against Myloan as of 2025, suggesting a strong adherence to regulatory standards. Furthermore, Myloan complies with consumer protection regulations, which encompass disclosure requirements, adherence to maximum interest caps, and fair debt collection practices, all designed to safeguard borrowers' interests.

In the competitive landscape of Lesotho's financial sector, Myloan faces competition from established players such as Express Credit, Standard Lesotho Bank, Lesotho PostBank (with its Nano loans), and other commercial banks offering micro- and small-business financing. Myloan differentiates itself through several key factors:

• 100% Digital Origination: Its reliance on the Musoni platform for fully digital loan origination sets it apart.
• Focus on Underbanked Micro-entrepreneurs: A dedicated focus on segments often underserved by larger institutions.
• Award-Winning Service: Myloan has received recognition, including Diamond Arrow Awards in both 2020 and 2021, affirming its commitment to service quality.

The company actively engages in strategic partnerships, such as its sponsorship of Lesotho Football Association referees, a three-year commitment valued at M120,000, to boost brand visibility. Ongoing API partnerships for mobile money and other integrations further solidify its market position and operational efficiency.

Customer Experience and Performance

Without a public app store presence, customer feedback for Myloan Limited primarily comes through word-of-mouth and direct surveys conducted by field officers. While there are anecdotal reports of occasional disbursement delays during periods of high application volumes, these remain unverified. Myloan provides customer support through a dedicated call center and relationship officers based at its Maseru branch. The company cites success stories where micro-entrepreneurs, financed by Myloan, have successfully expanded small retail and agricultural operations, contributing positively to local economic empowerment.

Financial performance details, including revenue, profitability, and loan portfolio size, are not publicly disclosed, typical for a private microfinance institution. No external equity or debt investors are identified, though its technology partnership with Musoni represents a significant in-kind fintech investment. Myloan’s asset quality and default rates are likely to align with the broader Lesotho banking sector, which reported a non-performing loan rate of 3.86% in September 2024, though specific data for Myloan are unpublished.

Navigating Your Options: Advice for Potential Borrowers

For Basotho considering Myloan Limited for their financial needs, it is important to approach the process with diligence and a clear understanding of the implications. Myloan offers a valuable service, especially for those in the underbanked categories, but as with any financial commitment, informed decision-making is paramount.

Here is practical advice for potential borrowers:

1. Inquire About All Costs Upfront: Since Myloan Limited does not publicly disclose its interest rates, APR, origination fees, processing fees, or late payment penalties, it is absolutely essential to ask for a full breakdown of all charges before signing any agreement. Ensure you understand the total cost of the loan, not just the principal amount.
2. Understand Repayment Terms: Clarify your monthly repayment amount, the exact due date, and the total number of installments. Understand the implications of missing a payment and any associated penalties.
3. Assess Your Repayment Capacity: Before applying, honestly evaluate your ability to repay the loan comfortably. Do not borrow more than you can realistically afford to pay back, as defaulting can have negative consequences for your credit history.
4. Prepare Required Documents: Have your National ID or passport, proof of residence, and employment/income verification documents ready to streamline the application process.
5. Utilize Digital Channels Wisely: If applying online, ensure you have a stable internet connection and are familiar with the digital application portal. Keep records of your application and any communication.
6. Leverage the Maseru Branch: If you are near Maseru and have questions or prefer a face-to-face discussion, visit the branch to get personalized assistance and clarify any uncertainties.
7. Compare Options: While Myloan offers specific advantages, especially its digital approach and focus on underserved segments, it is always wise to compare their offerings with other microfinance institutions and commercial banks in Lesotho to ensure you are getting the best terms for your specific needs.
8. Understand Unsecured Nature: Remember that these are unsecured loans. While this means no collateral is required, it also often implies higher interest rates compared to secured loans due to the increased risk for the lender.

Myloan Limited represents a modern approach to microfinance in Lesotho, making credit more accessible through its digital platform and focused target market. By following the advice above, Basotho can make well-informed decisions and leverage Myloan’s services to support their personal and business growth effectively.