Overview

Pension loan is a type of personal loan designed to cater to the short-term financial needs and emergencies of salaried workers who have good credit habits, consistent savings habits, stable employment, proof of residence and pension assets.

Pension Loan Categories: Borrowers can access up to 3.5× their monthly income or 70% of their available Tier 3 pension assets or liquid savings/investments, subject to a GHS 20,000 cap.

Accepted Collateral Types: To secure pension-backed loans, we accept a variety of collateral types, including:

• Investment Portfolio: Encompassing T3 Pension assets, stocks, bonds, mutual funds, and various financial instruments.
• Savings Accounts: Covering fixed deposits, savings bonds, and secure savings avenues.

Loan Terms:
• Borrowers can access up to 3.5× their monthly income or 70% of their available Tier 3 pension assets or liquid savings/investments, subject to a GHS 20,000 cap.
• Debt-to-Income Ratio (DTI): Not exceeding an 90% DTI to ensure sustainable loan repayment capacity.
• Interest Rate: The interest rate for CedisPay is based on five components: the cost of funds, cost of operation, cost of credit risk, customer-specific risk premium, and desired profit margin. This approach ensures that the interest rate charged is fair and reflects the borrower's risk profile
• Loan term is 12 months

The Loan Application Process and Requirements:

The loan application process is designed for efficiency and convenience:
• Application Submission: Customers submit their loan application online through the CedisPay platform.
• Documentation: Applicants provide essential documentation, including a valid Ghana Card, 3 months of bank statements and mobile money records, proof of address, and relevant pension and investment contribution details.
• Form A Completion: A completed Form A by the customer, pension trustee, and employer, outlining pension contribution details, vested amount, secured account, contribution portion utilization, pension balance, and authority for the pension trustee in case of default.
• Collateral Submission: Collateral information, including investment portfolios and savings accounts, is shared to secure the loan.

Value Proposition for the Customer

At CedisPay, our commitment to enhancing your financial journey includes several vital aspects:
• Tax Advantage: Choosing a CedisPay loan over pension Tier 3 withdrawal offers a crucial tax advantage. While pension withdrawals before ten years and not for a mortgage attract a 15% tax rate, our loan option provides tax relief on contributions. Preserve your savings and benefit from tax-efficient borrowing with CedisPay.
• Competitive Interest Rates: CedisPay offers a salary loan backed by pension at a highly competitive interest rate of 2.5% per month. This interest rate is often significantly lower than the returns you may earn by keeping your savings invested in Tier 3. By opting for a loan from CedisPay, you can access the funds you need while potentially saving money on interest compared to the growth you would expect from your pension savings.
• Preservation of Retirement Savings: By choosing to borrow from CedisPay, you can preserve your hard-earned pension Tier 3 savings. Leaving your savings intact allows them to continue growing and benefitting from potential market gains. Preserving your retirement savings ensures a stronger financial foundation for your future and helps secure a comfortable retirement
• Financial Well-being: We are devoted to helping you cultivate sound financial habits and attain your goals, supporting individuals from all walks of life in improving their financial circumstances.
• Financial Identity: Our unique approach involves building a comprehensive financial identity for our customers that transcends traditional credit history. By incorporating various parameters such as Average Pension Contribution per month within the last 12 months, Pension Contribution History (in Years), Pension Balance, Age and Retirement Proximity, Pension Type and Vesting, and Employer Contributions, we establish a holistic financial profile. This identity empowers access to the broader financial services sector, granting opportunities for borrowing, saving, and investment, even for those without a credit bureau credit history.

Streamlined Convenience: Your Ease is Our Priority

Our commitment to convenience is evident across our processes:
• Smart Information Utilization: We leverage technology to simplify the journey by analyzing bank and mobile money statements, expediting the process while ensuring precision.
• Employer Partnership: Collaborating with employers streamlines the process further, requiring minimal documentation such as Employer Confirmation and 3 Months' Payslips, optimizing your time.
• Direct Loan Repayment Agreements: Our direct salary deductions simplify loan repayment, eliminating manual transfers and ensuring a seamless experience.
• Effortless Investment and Pension Transactions: Partnerships with investment companies and pension trustees facilitate simple transaction submissions, removing unnecessary complexities.

The Loan Application Process and Requirements

We have meticulously designed the loan application process to ensure efficiency and convenience:

Key Requirements for Salaried Workers:
• Your Ghana Card
• 3 months of bank statements & mobile money records.
• Proof of address, including your Ghana postal address
• 3 months payslips
• Form A - Completed by the customer, pension trustee, and customer employer providing pension contributions details, vested amount, account for securing the loan, portion of contribution to be utilized, pension balance, and consent confirming authority for the pension trustee to pay the loan provider from vested Tier 3/Savings Booster/investment in case of default.

Key Requirements for Non-Salaried Workers:
• Your Ghana Card
• 3 months of bank statements & mobile money records.
• Proof of address, including your Ghana postal address
• Form A - Completed by the customer, pension trustee, and customer employer providing pension contributions details, vested amount, account for securing the loan, portion of contribution to be utilized, pension balance, and consent confirming authority for the pension trustee to pay the loan provider from vested Tier 3/Savings Booster/investment in case of default.

For non-salaried workers, our income verification process is modified. We leverage your pension/investment contributions as your monthly income. This is based on the assurance that the Pension Trustee has already conducted due diligence on the source of your contributions during the opening of your pension asset.

How to Apply

Personal Information

GhanaCard Number

Mobile Money Number

Email Address

Location -- select option -- Agbogbloshie Odorna - Industrial Area - Accra Central Accra Central Madina Mallam Gbawe Odorkor Darkuman Ablekuma Omandjor Bortianor Spintex Tema Oyarifa Dome Other Accra places Kasoa Kumasi Koforidua Other parts of Ghana

Digital Address

Are you employed with current employer for at least a year -- select option -- Yes No

Employment Status -- select option -- Full Time Part-time Unemployed Self Employed Contract

Is your monthly income equal to or greater than GHS2,000 per month? -- select option -- Yes No

Sorry, this particular product is exclusively available for full-time employees. For contract staff, kindly apply for a CedisCredit loan instead.

Sorry, this particular product is specifically designed for customers with a monthly income exceeding GHS2,000. For individuals with salaries below GHS2,000, kindly apply for a CedisCredit loan instead.

Income Information

Are you currently employed? -- choose an option -- Yes No

Do you receive regular monthly income (Employment income & other income) -- choose an option -- Yes No

Provide your monthly regular income

Monthly Debt Expenses

Are your loan payments automated? -- choose option -- Yes No

If you answered "Yes," please indicate the system you currently use to automate your loan payments -- select option -- Standing order with the bank Employer direct deduction Mobile money auto deduction Direct debit None

Current pension (Investment/Savings balance)

What is your pension balance? -- select option -- Above GHC 20,000 GHC 10,001 to GHC 20,000 GHC 5,001 to GHC 10,000 GHC 2,000 to GHC 5,000

What is your pension contribution history (In years) -- select option -- Above 10 Years 5 - 10 Years 1 - 5 Years Below 1 Year

What is your pension contribution history (Within one year) -- select option -- Regular and consistent monthly contributions Regular and consistent quarterly contributions Regular and consistent contributions every six months Occasional gaps in contributions but mostly consistent throughout the year Inconsistent contributions with significant periods of no contributions

Average pension contribution per month -- select option -- Above GHC 1,000 GHC 500 to GHC 1,000 Below 500

What type of pension assets are you using for this loan? -- choose option -- Petra Opportunity Pension Schema (Investment backed) Savings Booster (Savings backed)

Scoring Information

Number of years with current employer Above 10 years 5 - 10 Years 1 - 5 Years Below 1 Year

Name of Employer

Which of the following category of sector does your employment fall under -- select option -- Agriculture Industry Trade, Repair of Vehicles, Household Goods Hotels and Restaurants Transport and Storage Information and Communication Financial and Insurance Activities Real Estate Professional, Administrative and Support Service activities Public Administration, Defense and Social Security Education Health and Social Work Other Personal Service Activities

Credit Behaviour Information

Do you currently have any outstanding debts or loans? -- choose an option -- Yes No

Please provide us the following:

• Maturity dates on the loan
• Outstanding loans
• Most recent three (3) monthly payments and provide us with your loan agreement

Have you taken a loan from any financial institution -- choose an option -- Yes No

What is the length of history of your credit/loan borrowing or payment history? -- select option -- Above 4 years 2 years - 4 years 3 months - 2 years Less than 3 months No payment history

Have you ever defaulted on or missed a loan payment? -- choose an option -- Yes No

How many times have you missed payment on your loan/credit in your borrowing history? -- select option -- No missed payments 1 missed payment 2 missed payments More than 2 missed payments No payment history

Bills Payment Information

What are the bills that you are responsible for paying? -- select one -- Rent Payments Electricity bills Water bills Postpaid mobile phone bills Postpaid TV subscription bills Postpaid internet subscription Tax installment payment Due-paying association Other goods and services paid on an installment basis None of the above

What is the length of history of your Bills payment history -- select option -- Above 4 years 2 years - 4 years 3 months - 2 years Less than 3 months No payment history

How many times have you missed payments on your bills in your payment history? -- select option -- No missed payments 1 missed payment 2 missed payments More than 2 missed payments No payment history

Do you have recent 3 months loan payment history -- select option -- Yes No

Do you have recent 3 months bills payment history -- select option -- Yes No

Savings Habit Information

Do you have a savings account held with a financial institution, pension or investment company that you can use for emergencies, such as sickness or job loss? Please note that regular savings and checking accounts may not meet this requirement Choose an option Yes No

If yes, provide 3 recent savings contributions

Month 1

Month 2

Month 3

If you have appropriate insurance coverage, please indicate which of the following you have? -- choose an option -- Employer - Sponsored Insurance Funeral Insurance for Relatives Job Loss Insurance Disability Insurance Comprehensive Property Insurance for Business None

Do you regularly save a minimum of 5% of your monthly income for emergency purposes or future financial goals? -- choose an option -- Yes No

Eligibility Information

Do you have an active pension fund? -- choose an option -- Yes No

Relationship history with CedisPay or Relationship history with Pension Trustee / Payroll service provider? -- choose an option -- 6 months or more Less than 6 months Not applicable

Have you been in full compliance with all terms and conditions of your previous loans with CedisPay? -- choose an option -- Yes No

Loan Information

Amount Requested

Purpose of the loan -- select option -- Business Expansion Home Improvement Education Professional Development Medical Expenses Debt Consolidation Investment Opportunity Asset Acquisition Travel and Vacation Emergency Funds Other

Desired payment plan -- select option -- Weekly Every 2 weeks Monthly

Desired loan payment duration (months) -- select option -- 1 2 3 4 5 6 7 8 9 10 11 12

Source of income for repayment of loan

Frequency of Income -- select option -- Regular Irregular

Please select your preferred automatic loan repayment method for your CedisPay loan -- select option -- Standing Order from a bank Employer payroll deduction Mobile Money Auto-Deduction

Is the loan a secure or unsecured loan? -- select option -- Secured loan Unsecured Loan

Type of Loan -- select option -- Normal Pension Pension Promo

Next of Kin Information

Full Name

Phone Number

Relationship to Next of Kin / Contact Person

Physical Address (GhanaPostGPS)

This information will be kept strictly confidential and will only be used for the purpose of contacting your designated person in the event of any unforeseen circumstances.

Note: The purpose of collecting this information is to ensure the well-being and financial security of our valued customers. In case of any unfortunate event, such as illness or unexpected circumstances, we want to be able to support you and your loved ones during difficult times.

Social Media Information

Please select the social media platform you frequently use -- select option -- Facebook X (formerly Twitter) Instagram LinkedIn Other

Please enter your username or profile URL for the selected social media platform

Credit Bureau Information

First Name

Last Name

Date of Birth

Voter's ID Number or GhanaCard Number

Select the CedisPay Contact for this application -- select option -- Mark Doris Augustina

Submit

Please do have your GhanaCard, 3 months Bank or Momo statements and an Employee signed MOU (Memorandum of Understanding) ready to complete the process