Payroll-Linked Overdraft Product Report


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.

    To access the CedisPay PLOC, users must meet these essential 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
    The CedisPay PLOC offers the following standout 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
    The PLOC credit line operates transparently and flexibly:
  • 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
    Credit scores are vital for determining loan approval. Factors affecting credit scores vary depending on the user's financial history. Here are the key 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
    Our requirements include:
  • 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
    To be eligible for PLOC, you must satisfy these six fundamental criteria:
  • Stable Income Source
  • Solid Employment or Business History
  • Good Payment History
  • Have a payroll deduction service provider
  • Ghanaian Citizenship
  • Residency and Financial Stability Verification

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