Introduction

The Financial Well-Being Lending Model represents a pivotal integration within CedisPay's broader Financial Well-Being Model. It strategically merges financial well-being principles and habits into our lending approach, ensuring that our loan practices are aligned with the financial goals and aspirations of our valued customers.

• Financial Well-being Principles:
  • Responsible Lending Practices: We prioritize responsible lending by meticulously assessing your financial stability, ensuring that loan amounts are manageable and in harmony with your capacity to repay. Transparency and ethical practices are foundational to our approach
  • Flexible Payment Options: Recognizing the individual circumstances of each customer, we offer flexible repayment options tailored to your needs, empowering you to manage your loans effectively
  • Customized Financial Education: We provide personalized financial education programs to equip you with the knowledge and skills needed to make informed decisions and achieve lasting financial well-being
• Risk Management and Responsible Lending Principles:
  • Scoring and Eligibility Model: Our model evaluates your creditworthiness and financial stability, considering factors such as income, loan duration, and assets. Positive financial habits make you eligible for higher loan amounts
  • Evaluation Template: This practical tool ensures fairness and transparency in assessing your eligibility and loan amounts, aligning with our responsible lending principles
• Customer-Centric Principles:
  • We are committed to prioritizing your needs, offering responsive support and guidance every step of the way. Our services are personalized to cater to your specific requirements, ensuring a seamless and rewarding experience
• Sustainability and Operational Excellence Principles:
  • Our operations are built on sustainability and operational excellence, ensuring long-term viability and reliability in serving your financial needs. We prioritize simplicity, innovation, and efficiency to enhance your overall experience with CedisPay
• Financial Inclusion:
  • CedisPay is dedicated to promoting financial inclusion, ensuring that everyone has access to fair and transparent financial services, regardless of their background or financial status

Build-up of the Financial Well-Being Lending Model: Our Financial Well-Being Lending Model is meticulously designed to prioritize your financial stability and well-being. Here's a detailed breakdown of how it works:
• Assessing Your Income: We conduct a comprehensive analysis of your income sources, considering various factors such as income volatility and irregular earnings patterns
• Making Deductions: Deductions are meticulously calculated for essential expenses and debt obligations to determine a realistic loan amount that fits within your financial means
• Determining Available Income: After deducting essential expenses and debt obligations from your total income, we arrive at your available income, representing the amount you can allocate towards loan repayments
• Estimating Future Residual Income: We project your future residual income, considering anticipated changes in income, expenses, and financial commitments over the loan term.
• Present Value of Future Residual Income: We calculate the present value of your future residual income, adjusting for the time value of money to reflect its current value accurately
• Applying a Haircut for Emergencies: Finally, we apply an additional adjustment to account for unforeseen emergencies, providing you with a safety net to handle unexpected expenses without compromising your ability to meet loan repayments
By meticulously following these steps and incorporating advanced financial analysis techniques, the CedisPay Financial Well-Being Lending Model ensures that your loan amount is carefully tailored to your unique financial circumstances. This personalized approach promotes transparency, fairness, and responsible lending practices, ultimately contributing to your long-term financial well-being

Components of CedisPay's Financial Well-Being Lending Model
The responsible lending model of CedisPay comprises 12 essential components aimed at ensuring financial stability and well-being for our customers:
• Good Bills Payment Behavior
• Good Loan Payment Behavior
• Stable and Reliable Income
• Manageable Expenses
• Consistent Savings Habits
• Manageable Debt Levels (DTI)
• Stable Business or Employment
• Loan Mitigation Measures
• Insurance Behavior Review (not mandatory)
• Loans Above GHS10k Require Collateral
• Credit Score Above 50
• Customer Debt-to-Income (DTI) Ratio Below 30

Core Principles of the CedisPay's Financial Well-Being Lending Model
The Financial Well-Being Lending Model serves as the foundation of CedisPay's responsible lending practices. It comprises 12 core principles, each guiding our decision-making process and ensuring informed assessments:
• Bills Payment Behavior Review: Consistent payment of key bills demonstrates financial responsibility. Evidence required includes three months of bank statements, mobile money statements, or receipts and invoices of bill payment history.
• Loan Payment Behavior: Timely repayment of loans increases eligibility for future credit. Evidence includes three months of bank statements or mobile money statements demonstrating consistency in loan repayments
• Income Review: Stability and reliability of income are evaluated through three months' pay stubs or employment letters, along with bank or mobile money statements
• Expenses Review: Analysis of everyday expenses like rent, utilities, and fuel payments is conducted using three months of bank and mobile money statements
• Consistent Savings Habits: Evidence of three months' savings/pension tier 3 contributions and a savings/pension statement is required to demonstrate consistent saving behavior
• Manageable Debt Levels (DTI): Debt expenses should not exceed 35% of income, as assessed through bank statements and loan records
• Employment or Business Stability: Stability is demonstrated through employment with the same employer for at least three months or operating a business at a permanent location for a minimum of three months
• Trust and Mitigation Measures: Various mitigation measures such as non-cancelable debit agreements, employer verification letters, or utilization of pension assets as collateral are required to ensure loan feasibility
• Insurance Behavior Review (not mandatory): Maintaining appropriate insurance coverage may increase the eligible loan amount
• Loans Above GHS10k Require Collateral: Collateral such as a pension plan or savings is necessary for loans exceeding GHS10,000
• Credit Score Above 50: A credit score of 50 or above ensures a good credit history
• Customer Debt-to-Income (DTI) Ratio Below 30: DTI ratio should be below 30% to prevent overburdening with debt

What Evidence is Required for the Eligible Loan Model Core Elements (Loan Requirements)
To ensure responsible lending, evidence is required for various core elements of the eligible loan model:
• Valid Identification: Ghana Card or equivalent identification document
• Income Verification: Three months of bank statements and mobile money statements.
• Mitigation Measures: Non-cancelable debit agreements, employer verification letters, payroll deductions, utilization of pension assets as collateral, or evidence of investments or savings