Risk-Based Scoring, Guarantors, and Responsible Lending Explained
At CedisPay, our credit model is built on a risk-based approach, utilizing both traditional and alternative data to determine creditworthiness. Our unique credit scoring system assigns a passing credit score of 80, with specific adjustments for different scenarios.
Security-Based Scoring
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Lower Passing Score with Security: If you have a security like a Tier 3 pension asset or investment to back your loan, the passing credit score drops to 50. This allows you to qualify for a loan with a lower credit score when you provide security.
Guarantor Requirements
If you don't have a pension or investment to secure your loan, you'll need one of the following guarantors to qualify:
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Non-cancelable debit agreement.
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Employer letter verifying employment status.
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Payroll deductions set up.
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Evidence of assigned receivables (for business owners).
These guarantors serve as a form of security, reducing the risk of default
Guarantor Responsibilities
If you're asked to guarantee someone's loan, it means the borrower's risk of default is high. As a guarantor, you should ensure:
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You have a better credit profile than the borrower.
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You earn more than the borrower.
Being a guarantor means taking on significant financial responsibility
Alternative Guarantors
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Employer Letter.
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Payroll Deductions.
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Non-cancelable Debit Agreement.
These alternative guarantors provide security from your employer, payroll company, or bank, essentially acting as a guarantee
Transparency and Responsible Lending
At CedisPay, we believe in transparency and responsible lending. Understand our credit model to make informed decisions about your financial future.
Next Steps
For further assistance with our key products:
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Responsible Loans.
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Empowerment Programs.
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Financial Education.
Access Funds at:
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4% monthly with Payroll Deduction Loans.
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1.8% per month with loans secured against pension assets.
Let's work together towards financial well-being! #CedisPay #CreditModel #RiskBasedScoring #Guarantors #ResponsibleLending
