MoMo Advance, complete mobile transactions with insufficient funds

MoMoAdvance is an overdraft facility introduced by MTN Uganda in partnership with NCBA bank, to allow MTN Mobile Money users to complete transactions regardless of having insufficient funds.

MoMo Advance, complete mobile transactions with insufficient funds

Users will be able to use MoMoAdvance to send money, buy goods and services, pay bills, airtime and bundle purchases.

How long has the service been active?

MTN rolled out a pilot scheme for MoMoAdvance in December 2020 which to date turned out to be successful after acquiring 135,000 subscribers.

MTN has officially launched the service which will extend the transaction capability of its predecessor MTN MoMo.


“MTN MoMoAdvance is a product that we have been working on for some time with our partners from NCBA Bank. We are happy to finally roll it out to all our customers and we believe that it will give them the convenience to transact seamlessly beyond their wallet balances during times of need then pay back later,”  

Stephen Mutana - General Manager, MTN Mobile Financial Services.


Are there requirements for using MoMoAdvance?

You must:

  • be an active MTN MoMo user.
  • have used MTN Mobile Money for a minimum period of 6 months.
  • pass credit scoring based on usage of MTN services.


How does it work?

  1. Register for MoMoAdvance service by dialing *165*5*3# or through the My MTN app.
  2. Choose YES to accept the terms and conditions.
  3. Enter the MTN Mobile money PIN.
  4. Now you can access the credit limits of your account.

Unsuccessful registration means you have to keep using MTN services until your credit score improves.

Charges when you using MoMoAdvance?

MoMoAdvance users are charged a:

-  one-off access fee equivalent to 2.75% of the amount overdraft used.

-  daily interest of 0.5% on any outstanding balance.

Key things to note as an MTN MoMoAdvance user

1. The increase of credit available for usage depends on whether you’ve met the following conditions -

     - CRB ratings

     - Consistent repayment performance

     - The provision of correct information during the registration process.

2. The daily interest shall be charged at the end of each day that the overdraft is outstanding up to a maximum of 45 days.

3. No maintenance fee is charged if the outstanding overdraft amount is settled within the first day.

4. No additional fee shall be charged beyond 30 days.

5. Normal MTN Mobile Money transaction charges apply for other transactions done.

6. You will not have access to your MoMo Advance limit if you do not make any deposits to your MoMoAdvance for a period of 45 days.

In Conclusion

MoMoAdvance is one of many services in Africa that aim to improve financial inclusion in the region. As the service continues to mature my only hope is that they would continue to provide fair and affordable services to their users.

Sources: MTN Uganda