As the cost of data in Nigeria hikes to the highest it has ever been, many users are turning to MTN and their XtraByte service, which allows customers to borrow data when they run out. While this service seems to be a lifesaver in times of desperation, what does it mean for regular borrowers in the long run?
A few factors must be considered to understand MTN’s XtarByte efficiency. These include a breakdown of the costs, hidden charges, and whether it’s a smart option for regular data users.
How MTN Data Loan Works
Firstly, what process does one undergo to get this data loan? MTN’s XtraByte service allows eligible customers to borrow data and pay it back on their next recharge.
However, the amount you are allowed to borrow is contingent on your usage history and how frequently you recharge. The available loan amounts are not much as they typically range from 25MB to 2GB. Any repayment is then automatically deducted from your next recharge.
The True Cost of Borrowing Data with MTN
While this service is convenient and seemingly speaks to the kindness of MTN, it comes at a cost. The data service company charges a 15% service fee on every data loan, meaning if you borrow 1GB (₦500), you’ll owe ₦575 when you next recharge. These extra charges may not seem like much, but they can add up quickly.
Considering people who regularly borrow data are those who already struggle to buy the data bundles, the high service fee may become another burden on their shoulders.
Therefore, making data loans is likely to be a more expensive option compared to simply buying a normal data plan.
Does MTN Take Hidden Charges?
While MTN does not take hidden charges, the service charge is deducted without any prior warning from the company. This means that if you borrow 1GB you’ll only receive 850MB. Many users only realize this after borrowing, leading to frustration when they run out of data faster than expected.
Moreover, once you owe MTN a loan, all your recharges will automatically deduct the amount to pay off your debt. This can be inconvenient if you are planning to use your airtime for something else.
Is It Worth It?
MTN’s data loan is useful for emergencies, such as when you need immediate internet access and can’t buy data right away. However, using this borrowing service regularly is both ineffective and expensive in the long run.
If you frequently run out of data, it would simply be better to buy larger, more cost-effective data bundles in advance.
For people who struggle with including data in their budget, the auto-renewal on data plans or using Wi-Fi where possible can help avoid the need for expensive data loans.
Conclusion
MTN’s XtraByte service is a handy immediate service, but banking on it for consistent use is not the best bet.
The high service fee and automatic deductions make it unnecessarily expensive in the long run. The best thing to do is plan and buy data in bulk to avoid the extra charges.
What do you think of this service? Let us know down below.
