CedisPay's Credit Builder Loan: An Introduction

CedisPay is a financial institution that has recently launched a Credit Builder Loan to assist individuals with no credit history in establishing a good credit history in a responsible way. This loan is designed to help people gain access to credit and build a solid credit history, especially for those who are unbanked.

Objective of CedisPay's Credit Builder Loan

The objective of CedisPay's Credit Builder Loan is to assist the unbanked in establishing a good credit history in a responsible manner. It aims to assist individuals who have no credit history in gaining access to credit, which will enable them to build a good credit history.

CedisPay Credit Model Approval Process

CedisPay's credit model approves a customer only if the customer meets two conditions:

1. The first condition is that the customer must have a credit score of 60 or above to ensure that they have a good credit history
2. The second condition is that the customer's debt-to-income (DTI) ratio must be below 80% to ensure that they are not overburdened with debt

In case a customer is rejected for not meeting the above conditions, CedisPay approves the customer for a credit builder loan.

Within a three-month period, if the customer meets the above minimum requirements, the approved loan is disbursed to the customer. In essence, the CedisPay credit builder loan approves a customer for an instant loan when the customer is rejected. However, the loan can only be disbursed if the customer meets the two conditions mentioned above.

How CedisPay Credit Builder Loan Works

CedisPay's Credit Builder Loan operates differently from traditional loans. Instead of receiving the loan amount upfront and paying it back in installments, borrowers build their CedisPay credit score within three months by demonstrating the specified conditions. The loan amount is tied to the borrower's current mobile money balance or bank account balance, with a limit that increases over time. The CedisPay credit builder loan approves a customer for an instant loan when the customer is rejected. However, the loan can only be disbursed if the customer meets the two conditions mentioned above.

Below are the steps involved in the process

1. Apply for a Credit Builder Loan with CedisPay, and the loan amount will be approved based on your current mobile money balance or bank account balance, with a limit that grows over time.
2. Demonstrate a consistent pattern of usage and bill payments with your mobile money account or bank account
3. Use your mobile money account or bank account to pay for business and personal expenses, including loan repayments, bills, and savings
4. Within three months of consistent habits and improvement of CedisPay credit score up to 60 at least, CedisPay will use your recent three months' mobile money statements and approve you for a maximum of GHS 5K for three (3) months

Conditions

The CedisPay loan amount is valid for three months from the date of customer application, and the following requirements must still be met:

1. Use your mobile money account or bank account to pay for your business expenses, such as inventory, utilities, and rent
2. Deposit your business income on a daily basis or if not possible on a weekly basis on your mobile money account or bank account
3. Use your mobile money account or bank account to pay for loan repayments
4. Use your mobile money account or bank account to pay for your family commitments, such as school fees, rent, and utilities
5. Use your mobile money account or bank account to pay for goods or services used on a credit basis, such as Postpaid mobile phone bills, Postpaid TV subscription bills, Postpaid internet subscription, retail or wholesale goods and services paid on an installment basis, tax installments
6. Use your mobile money account or bank account for savings and insurance habits

During this three-month period, CedisPay will reach out to assess your progress towards meeting the conditions specified in this letter. Note that a customer may achieve the CedisPay minimum credit score of 60 and a debt-to-income ratio of less than 80% in less than three months. CedisPay will assist such customers by checking up on them each week to assess

When you can withdrawal the approved amount

Within three months, you will need to submit your mobile money account for evaluation, and your loan amount will be determined using the CedisPay eligible loan model, and you will withdraw the amount immediately.

Benefits of CedisPay Credit Builder Loan

By submitting your mobile money account or bank account, you will enjoy the following benefits:

1. Guaranteed instant approval from CedisPay
2. Monthly updates on your CedisPay credit score
3. Timely reporting to credit bureaus
4. Lowest interest rate in the market
5. Flexible payment terms
6. Second chance to establish or repair your credit history
7. No collateral
8. No money down needed

Conclusion

CedisPay’s Credit Builder Loan is designed to help those without credit history establish a good credit history in the right way. By making regular payments towards the loan for three months and submitting your mobile money account or bank account for evaluation, you will enjoy guaranteed instant approval, monthly updates on your CedisPay credit score, and flexible payment terms, among other benefits. This loan offers individuals a second chance to establish or repair their credit history with no collateral or money down needed.