CedisPay

Introduction

CedisPay is thrilled to introduce its groundbreaking Payroll-Linked Overdraft Product (PLOC). This revolutionary offering provides users with convenient access to overdraft facilities. This report offers a comprehensive insight into the product's features, requirements, and factors affecting credit scores for loan approval.

Requirements

3 Months Actives on Service Provider’s Payroll Software: Users need a history of at least 3 months of active payroll transactions with a service provider partnered with CedisPay. This requirement aligns with our rigorous risk assessment protocols
Ghana Card: A Ghana Card is essential to verify the user's identity and citizenship, ensuring strict regulatory compliance
3-Month Momo Statement for <3K and Bank Statement and Momo for More than 3K: Users must provide financial statements for a comprehensive assessment of their financial history and behavior
Proof of Address: Address verification is vital for precise communication and regulatory compliance

Product Features

Max Payback Time - 1 Month: Aligning with the transient nature of the PLOC, users have 1 month to repay the overdraft, promoting responsible lending
Interest Rate - 0%: This interest-free overdraft feature enhances the product's attractiveness to a broader user base
Processing Fee - 6% (Shared Between CedisPay and Its Service Provider for Deduction): A reasonable fee structure ensures fair compensation for all stakeholders
Amount Accessible - 40% of Net Salary Capped at 5K: Users can access up to 40% of their net salary, capped at 5K. This cap mitigates risk and offers flexibility based on the user's financial profile

How PLOC Works

A qualified PLOC customer is approved based on their 3-month financial activity
The approved PLOC is accessible for 3 months, with full repayment due in 30 days
Users can withdraw the entire amount or a portion as needed
Multiple withdrawals are allowed within the 30-day period
Access to the PLOC is renewed after 1 month if the previous amount is fully repaid
Users can benefit from the facility for up to 3 months
To maintain eligibility beyond 3 months, users must provide the latest 3 months of financial statements.
This cycle ensures continuous access to the credit line

Credit Score Factors

Scenario 1: Bank Statement Only (Loan Amount > 3K to 5K GHS):
- Average 3 Months Bank Statements/Account Balance Stability
- Income Source Consistency
- Bill Payments
- Debt-to-Income Ratio
- Number of Years with Current Employer
- Loan History
Scenario 2: Mobile Money Statement Only (Loan Amount <= 3K GHS):
- Transaction Frequency
- Transaction Size
- Debt-to-Income Ratio
- Number of Years with Current Employer
- Bill Payments
- Average 3 Months Mobile Money Balance
- Consistency in Using Mobile Money
- Loan History

Approval Decision

To ensure responsible lending practices, applicants must meet both the minimum credit score and Debt-to-Income (DTI) requirements:

Minimum Credit Score:
- Scenario 1 (Bank Statement Only, Loan Amount > 3K to 5K GHS): A minimum credit score of 70 or higher is required for approval
- Scenario 2 (Mobile Money Statement Only, Loan Amount <= 3K GHS): A minimum credit score of 50 or higher is necessary for approval
Explanation: A credit score is a numerical representation of an individual's creditworthiness. It considers factors like credit history, payment behavior, and financial responsibility. A higher credit score indicates a stronger track record of managing credit and meeting financial obligations. For loans with higher amounts (Scenario 1), we set a higher minimum credit score requirement to ensure that users requesting larger overdrafts have demonstrated a consistent history of responsible credit management
Debt-to-Income Ratio (DTI):
- The DTI should not exceed 35%. This means that the total debt expenses of the applicant, excluding the proposed overdraft, should not account for more than 35% of their total income
Explanation: The Debt-to-Income (DTI) ratio is a critical factor in assessing an applicant's ability to manage additional debt responsibly. It measures the proportion of an individual's monthly income that goes towards servicing debt obligations, including the new overdraft. A DTI exceeding 35% may indicate a higher risk of financial strain, making it essential for applicants to maintain a healthy balance between their income and debt commitments. To qualify for the CedisPay PLOC, applicants must meet both the minimum credit score requirement and ensure their DTI does not exceed 35%. This dual requirement guarantees that approved users not only have a history of responsible credit behavior but also possess the financial capacity to manage the proposed overdraft without undue financial stress.

Direct Application

Visit our website at CedisPay Website or submit your documents at document submission.

Application Through a Service Provider

Complete forms provided by the payroll service provider platform
Submit the Required Documents to your service provider
Your payroll service provider will submit your forms and documents to CedisPay
Loan Assessment: CedisPay will evaluate your eligibility based on the provided documents and your financial profile
Loan Approval: Upon approval, CedisPay will disburse funds to your designated account within 24 hours

Our Requirements

Your Ghana Card
3 months of bank statements and mobile money records
Proof of address, including your Ghana postal address
3 months' payslips for salaried loans

Eligibility Requirements

Stable Income Source
Solid Employment or Business History
Good Payment History
Have a payroll deduction service provider
Ghanaian Citizenship
Residency and Financial Stability Verification

Payroll-Linked Overdraft Product Report