Shuga is a mobile-centric banking service offered to Mobile Money Rwanda Ltd customers by BANK OF
KIGALI through the Mobile Money Channel. Shuga is a suite of banking products offered to Mobile
Money Rwanda Ltd customers to enhance the Mobile Money Rwanda Ltd value proposition. Shuga
offers savings and Loan products that are convenient, reliable, and cost-effective for making micro
savings and taking micro-loans.

Following the successful rollout of Mokash, BANK OF KIGALI and Mobile Money Rwanda Ltd have
collaborated with a common goal to extend and deepen financial inclusion in Rwanda, with a rollout of a
similar digital deposit and credit product that is offered to all Mobile Money Rwanda Ltd customers.

• Be a registered MTN Subscriber.
• Be a registered Mobile Money Rwanda Ltd customer.
• Have an active Mobile Money Rwanda Ltd account/line for at least 6 months
• Hold any of the following identification documents: a Government ID or a Valid Passport.

A customer can save and earn interest, or take out a short-term loan (7, 14, or 30 days) with Shuga Loan.

• Convenience of mobile banking, i.e., you can transact from the comfort of your location.
• Paperless (mobile-centric), safe, and fast service.
• No minimum balance.
• No ledger fees.
• No transactional charges while moving money between MTN Shuga and Mobile Money
  Rwanda Ltd.
• Competitive interest rates.
• Access to micro credit facilities.

• Quick access to credit.
• Loan repayment periods are 7, 14, and 30 days.
• One-time processing fee of 9 % for the 30-day loan product,8% for the 14-day loan product, and
  7% for the 7-day loan product
• If the loan is not paid on time, the customer will incur a rollover fee of 8% for the 7-day loan, 9%
  for the 14-day loan, and 10% for the 30-day loan of the outstanding principal.
• The loan is disbursed directly to the customers’ Mobile Money Rwanda Ltd wallet.

To qualify for a loan, all a customer needs is to be a Mobile Money Rwanda Ltd subscriber for at least
three months, and actively use other MTN services such as voice, data, and MoMo.

• Transaction Charges
• Loan Request 0
• Repay Loan 0
• Loan Facility Fee 7,8 and 9%
• Rollover Fees (Applicable only if the loan remains unpaid by the due date) 8% ,9%, and 10%

Once enrolled in Shuga, the initial credit limit is determined by utilization on the following services:

• MTN Voice, MoMo, and Data. Limits are also influenced by how long the customer has been on
  the MTN network.
• Please note that, based on these parameters, a customer may fail to qualify for a limit.
• Subsequent limit reviews are based on loan performance, i.e., loan uptake and repayment.

Dial *182*5*5#, choose option (2) for Apply for a loan, and check your loan limit.

The customer will receive the full loan amount requested. The facility fee is an additional amount over
and above the principal amount. For example, if a request is made for a loan of Rwf 1,000, the customer
will receive the complete requested amount and will be required to pay back Rwf 1,090 (30-day loan).

• Minimum amount is RWF 500
• The maximum amount is RWF 1,000,000 but is subject to the customer’s credit limit (Your initial
  credit limit is computed based on your utilization of the following services: MTN Voice, MoMo
  Services, and Data, and is influenced by how long the customer has been on the MTN network.)

The loan can be repaid within 7, 14, or 30 days. However, you may choose to repay earlier than the due
date and borrow again. Early repayment increases a customer’s chances of growing their Shuga limit.
Please note that not all customers will see all loan options. Some customers may have visibility of
multiple options, while others will only see the loan amounts and tenors for which they are eligible.

Dial *182*5*5# and select:
i. Option (1) for Apply for a Loan
ii. Option (2) for Repay Loan
iii. Choose the option (2) whether you want to pay the loan in full or partially
iV. Enter the amount you wish to pay and confirm the transaction by entering your MoMoPIN.

• If a customer has a deposit balance in their Mobile Money account, the loan shall automatically
  be repaid from these accounts in that order.
• The customer will be given a one-day grace period if there are insufficient funds in their MoMo
  account, the loan will automatically enter a rollover period and a rollover fee (based on the
  original loan tenure) will be applied.
• Additionally, the customer risks losing their credit limit and being blocked from Shuga services
  and other related MTN services. The services include, but are not limited to, Savings
  withdrawals and access to subsequent Shuga Loans.
• Information related to a customer’s repayment history will be shared with other lenders,
  including Banks, through the credit reference bureaus licensed by the National Bank of Rwanda.
• The customer may consequently be denied loans by other lenders based on the negative credit
  history.
• The customer may be denied participation in future Shuga Promotions and rewards.

• If a customer has a non-performing loan with any other financial institution, they will be
  restricted from borrowing on Shuga until the loan is fully settled or the arrears are cleared.
• If a customer repays their Shuga Loan when it is > 61 days, their score card shall be reduced up
  to zero.
• On day 63 of the Shuga Loan, the credit limit is reduced to 80% of the current limit or the
  previous limit, whichever is lower.
• When a Shuga loan is 90 days old, the customer’s limit is reduced to 0; hence, even after the
  expiry of the 1-month restriction period, a customer is unable to access the credit service.

The transaction fails and the user gets notified why the transaction failed.

• The Shuga loan tenure options are displayed to a user based on the scorecard results.
• If they qualify for all loans tenure (such as 7-day, 14-day, and 30-day options), they will see all of
  them available to choose from.
• However, if they are only eligible for specific loan tenure, only those options will be shown. This
  ensures that the offers customers see are tailored to what they currently qualify for.