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Credit bureaus help financial institutions to make the right financial decisions. This is because credit bureaus provide them with credit reports of customers. And the credit reports highlight the financial behaviours of individuals. Therefore, the financial institutions will decide reliable individuals they could lend their money to. Some individuals apply for personal loans or business loans even when they don’t have an excellent credit history. XDS DATA is one of the credit bureaus in Ghana. About XDS DATA, the products and services they offer are all-inclusive in this.

About XDS DATA

XDSDATA is an information solutions company that is in Accra, Ghana. In West Africa, they are the first to gain license as a credit reporting bureau. They set up the company to assist lenders in the critical areas of their operations. By the provision of timely and reliable credit information. They designed it to meet the needs of credit markets.

What are the products of XDS DATA?

XDS DATA offers services to financial institutions that operate in Ghana.

The following are the products of XDS DATA in Ghana:

1. OCRB

This product allows financial institutions to take control of their business’s credit report. Besides that, this will help them aid bank financing for their businesses.

The Ghana’s credit reporting Act, 2007 (Act 726) states that financial institutions must check your credit report. Especially before deciding to lend or refuse a loan to a business. More so, they must report your performance on the business loan to a licensed credit bureau monthly. And XDS DATA Ghana Limited is among those credit bureaus.

There are some situations whereby a bank may report credit information that does not belong to your business. Or the report may not contain updates that reflect your business loan performance.

You can access your business credit report with an introductory price of just Gh¢1.00  or less per day. 

Their team contact is +233(0)50-7186-922.

2. Batch report

This is where financial institutions manage their loan book with a batch report. It is also where they process large volumes of customer information simultaneously at database level.

They have the following under batch report:

1. Account management
2. Risk minimization
3. Strategy bound
4. Analytical dashboard
5. Cost reduction
6. Foresight
7. Cost saving
8. Full integration

3. Web services

They have web services that allow their clients to integrate their credit application engine directly with XDSDATA’s system. This will help their banking systems to access credit reports directly. Besides that, it allows them to generate reports faster and more conveniently than doing so from XDS DATA online portal. It reduces turnaround time for decision making, therefore; it saves time.

4. Consumer reports

They created this product in order to provide answers to the following questions that form their objectives:

1. Should they grant the Consumer Credit or not?
2. They should offer What Credit Limit?
3. They should offer What Interest Rate?

Having in mind the above objectives, the report therefore will carry the following information:

1. Personal details summary

In the personal details summary is where you will find the most recent personal information on the consumer from the Credit Providers.

2. Credit account summary table

This credit account summary table shows a summary of facilities that they take from credit provider(s). You get to see the list of the total amount of debt and monthly installments in major trading currencies.

3. Highest reported month in arrears

This comprises a listing of the highest number of consecutive payments they miss. And this cuts across all the accounts over the last 24 months.

4. Detailed credit facility table

The total number of facilities taken is what this table lists. Also, it bears the company with whom they took the facility, the initial credit limit they offered. It also contains the current balance, installment amount, and the last payment date.

5. Monthly payment behavior grid

This grid helps to evaluate a consumer’s payment behavior over the last 24 months. Each number on the grid represents the number of months in arrears. It helps them to determine how recent the information is. A grid with ‘#’ shows that they have submitted no data for that month.

Note: The grid also helps in determining the likelihood of default.

6. Business enquiry report

This product helps to cater for the following questions:

1. How long has the Business existed?
2. What are the Address and Contact Details of the Business?
3. How many Directors does the Business Contain?
4. Facility Behavior Summary
5. Should they grant Business Credit or not?
6. They should offer What Credit Limit?
7. They should offer What Interest Rate?

7. MobiXDS

Individual borrowers can easily access their credit information with their mobile phones. This is what the MobiXDS SMS service enables them to do.

8. Risk Analysis

This product offers a complete, innovative and accurate risk analysis of enterprises for valuation and other purposes.

A company’s basic risk rating requires the following information:

1. Company information
2. Tax information
3. Company structure
4. Trade references
5. Adverse information
6. Auditor’s information
7. Bank information
8. Director information, etc.

What are XDS Data contact details?

1. Address: 15 North St. Tesano – Accra, Ghana. P.O Box YK 895 Kanda Digital Address: GA-206-1314

2. Phone number: +233 202-013-057 | +233 278-858-255 | +233 269-830-192

3. Email address: info@xdsdata.com dispute@xdsdata.com

Conclusions

The role credit bureaus play is essential. This is because, without them, financial institutions could always lend money to individuals who cannot repay their loans. And this could unfortunately shutdown some financial institutions, especially the startups. XDS DATA Ghana Limited offers products and services that help financial institutions to thrive in their businesses. Therefore, the full utilization of these products and services will ultimately enable financial institutions to thrive in their businesses.

Read also:

How to improve your credit score in Ghana

Credit bureau in Ghana – Everything you should know

USSD loan codes in Ghana – What you should know

As long as you live, you will always need money to solve your needs. There are choices regarding ways you can get money. You can source for a quick loan, travel loan or even a debt consolidation loan from a bank. Besides that, getting money from a credit union could also be a good option to try out. The credit union offers some financial products and services that banks offer. The meaning of a credit union, common requirements, how they relate to banks, etc are all-inclusive in this article.

What is a Credit Union?

A credit union is a form of financial institution, just like a bank. But the difference is that the members of the credit union own it. It operates as a nonprofit entity that aims to serve its members rather than seeking to earn a profit. Employees and people of the same interest usually come together to form a credit union. And this is for serving the best interest of its members.

A credit union often offers better savings rates, lower loan rates, and because of this, the fees are low. A credit union usually has requirements if someone wants to join them. 

What are common requirements to become a Credit Union member?

Before you can become a member of a credit union. There are some requirements you must meet and they vary depending on how they organise the credit union.

The following are the common requirements for a credit union:

1. The members must have something in common to join a credit union.
2. When you couldn’t meet any of their membership requirements. Some credit unions could require you to pay a small fee to become a member.

What are the Credit Unions in Ghana?

There are credit unions that exist in Ghana. However, we will look at the most prominent ones.

The following are the Credit Unions in Ghana:

1. Ashanti
2. Brong Ahafo
3. Central
4. Eastern
5. Greater Accra
6. Northern
7. Tema
8. Upper East
9. Upper West
10. Volta
11. Western

How do credit unions differ from banks?

Credit unions and banks relate, but they operate differently. And this difference sets them in worlds apart.

The following is how credit unions differ from banks:

1. Credit unions do not operate to make a profit. Whereas, the sole aim of banks’ existence is to make a profit.

2. Credit Unions would require you to become a member and co-own the credit union. Whereas banks do not need you to be a member of the stakeholders or co-own the bank.

3. The existence of credit unions is typically local (within a geographical area). Whereas the existence of banks is typically national.

4. The amount of product offerings from credit unions is usually not much. Whereas that of banks encompasses a wide variety.

What are the pros and cons Credit Unions have?

There are pros and cons of every phenomenon, and this helps us to get the bigger picture of that phenomenon. This bigger picture enables us to weigh the two sides of the coin. And then, we could decide whether it’s good for us to try out.

The following are the pros of Credit Unions:

1. Credit unions usually have decision makers close by. And this quickens the access to loans or other financial transactions for members.

2. They most times offer members higher interest rates on their savings accounts.

3. The fees they charge are typically lower than fees from other financial institutions.

4. Credit unions offer lower interest rates on loans that members get. Even if it’s a mortgage loan, car loan or personal loan you want.

The following are the cons of Credit Unions:

1. You must meet credit unions’ requirements before you can become a member.

2. The products and services credit unions offer are usually lower than the ones other financial institutions, especially banks, offer.

3. The credit unions do not exist in several locations like most financial institutions. Because of their structure, they typically exist in communities the credit unions serve.

Conclusion

Because a credit unions’ major goal is to serve their members. They do not prioritise profit over the full satisfaction of their members. They help their members with the money that would have been profit. Besides that, the members of credit unions enjoy better interest rates on their savings. And also, they have lower interest rates on the loans they get from their unions. So, if you’re looking for a community that focuses on their members. With better interest rates and lower fees, a credit union could be the best option for you to try out.

Other related articles:

How to get loans in Ghana without collateral

Emergency loans in Ghana: what you need to know

5 common reasons your loan may be rejected

Lack of cash flow usually brings people to the doorsteps of lenders or financial institutions. Needs are always insensitive to the cash you have at hand. Even unforeseen circumstances can happen at any moment. Because of this, quick loans, car loans, debt consolidation loans, etc can become a way out of lack of cash flow. Trying out Multi Credit Savings and Loans could be a cool thing to do. In this article, you will learn more about MultiCredit Savings and Loans, their products and services.

About Multi Credit Savings and Loans Ghana

They used to know Multi Credit savings and loans Ltd as ‘Garden City Savings & Loans Ltd’. They are a limited liability company and the Bank of Ghana gave them the license to carry on the business of savings and loans as number 0027. And this conforms to what the financial institution (PNDC) law provides. This allows them to collate deposits from the public and grant loans and other credit facilities to their customers.

What are the products and services of Multi Credit Savings and Loans Ghana?

Multi Credit Savings and Loans Ghana have some products and services they offer to their customers. 

The following are their products and services:

1. Savings Account

They offer savings accounts to their customers with the following features and requirements.

Features

1. Easy account opening procedure
2. Minimum opening balance is GHS5
3. Minimum operating balance is GHS10
4. The minimum balance to qualify for interest is GHS20
5. Attractive interest rates
6. They calculate interest daily and apply it monthly
7. Up to four withdrawals per month

Requirements

1. Valid ID Card
2. 1 passport picture
3. Utility bill within 3 months
4. A reference from a current account holder with a reputable Bank or Savings and Loans Company or Letter from employer
5. Resident permit (for foreign nationals)

2. SME Loans

They offer this type of loan to small and medium enterprise businesses. This loan has the following features and requirements.

Features

1. Less cumbersome procedure
2. The loan comes in flexible amounts to meet the needs of all levels of businesses
3. Quick Turnaround time
4. Term: Up to 60 months
5. Competitive interest rates
6. Flexible repayment terms

Requirements

1. Proof of address and identity of your directors or promoters
2. Identity and proof of address of entity
3. Board Resolution
4. Company Registration documents
5. Your financial statement (audited) for the last 3 years
6. They would require six (6) months’ bank statement for non-customers
7. They may require security

3. Fixed Deposit

They also offer fixed deposits to customers who need it. The following are the features and requirements of the fixed deposit they offer.

Features

1. Less Cumbersome procedure
2. Minimum investment of GHS1,000
3. The terms they offer are; 30 days, 91 days, 182 days and 1 year
4. They issue a certificate of investment
5. Attractive interest rate
6. They calculate interest daily

Requirements

1. Valid ID Card
2. 1 passport picture
3. Get a utility bill within 3 months
4. Resident permit (for foreign nationals)

4. Susu Account

Multi credit savings and loans also offer Susu Accounts to customers.

Features

1. Less cumbersome account opening procedure
2. Minimum opening balance is GHS1
3. Access to a free Pass Book
4. Personal Field Banker
5. Unlimited withdrawals
6. Lower interest on susu loans
7. Instant Confirmation of daily deposit
8. Minimum daily contribution is GHS1
9. You need to contribute for a minimum of two (2) months to qualify
10. Minimum loan amount is GHS200
11. Loan maturity profile

Requirements

1. Valid ID Card
2. 1 passport picture
3. Provide a utility bill within 3 months

5. Current Account

They offer current accounts and they make it easy too. The following are the features and requirements of the current account.

Features

1. Less cumbersome account opening procedure
2. Minimum opening balance is GHS10
3. No minimum operating balance
4. Access to a cheque book
5. No Commission on Turnover (COT)

Requirements

1. Valid ID Card
2. 1 passport picture
3. Bring a utility bill within 3 months
4. Get a reference from a current account holder with a reputable Bank or Savings and Loans Company or Letter from employer
5. Resident permit (for foreign nationals)
6. Resolution from the Board
7. Business registration documents (Businesses only)

The following are the Services of MultiCredit Savings and Loans:

1. Prestige Susu
2. Yenmma Daakye Account
3. Multi Child Account
4. Employee Loans
5. Funeral Loans
6. Auto Loans

What are the contact details of Multi Credit Savings and Loans Ghana?

1. Address: Bantama High St, Kumasi, P.O.Box 1920. Adum.

2. Phone: (+233) 322-037-418

3. Mail: info@mcslghana.com

Conclusion

Loans are usually a reliable financial backup when you need cash flow. With loans, you can escape catastrophic consequences. Loans can help you make unforeseen expenses such as medical bills. However, repayment of these loans you get must be a top priority. This is because you may not get another loan if you do not repay the one you have. Besides that, it could affect your credit score, making access to any form of credit impossible.

Other related articles:

Progress Savings and Loans – What you should know

Direct Savings and Loans Review – What you should know

Debt financing – What you need to know

Is it possible to get a loan without your lender checking your credit score? The answer is ‘NO.’ You could need a debt consolidation loan, travel loan, business loan, etc. But you can’t get any of those loans without the lender checking your credit score. This shows how important your credit score is to the lender of any form of credit. Your credit score helps your lender to decide whether to give you the loan. You can improve your credit score and the sooner you do it, the faster it will go up. Meaning of a credit score, how to improve your credit score, and so on are all-inclusive in this article.

What is a credit score?

The credit bureaus collect information relating to the credit ratings of individuals. Then they use the information they collect to create a credit score for each individual. 

A credit score is a three-digit number, which helps lenders make loan decisions. It helps them know how likely they’ll get back the loan they give you on time. A credit score is a very important factor in your financial life. A higher credit score can enable you to qualify for loans and credit cards with more favorable terms. And this will definitely save you money. The credit bureaus calculate the credit scores of borrowers. 

Note: There is no particular algorithm that all lenders or other financial companies used to compute the scores. However, some credit scoring models are very common, such as; the FICO Score, which ranges from 300 to 850.

What are the factors credit bureaus used to calculate my credit score?

In order to know how you can improve your credit score. You should know the factors that credit bureaus use to calculate it. Therefore, if you play in line with the demands of those factors. You will be on the right path to improving your credit score.

The following are the factors credit bureaus use to calculate credit score:

1. Your credit payment history
2. The current debts you have
3. Time length of your credit history
4. The credit type mix
5. How often you make applications for new credit.

How can I improve my credit score?

Having seen the factors credit bureaus use to calculate your credit score. You can now see how you can improve your credit score.

The following is how you can improve your credit score:

1. Avoid applying for too much new credit

If you apply for too much new credit, it will cause multiple inquiries on your credit score. And this will reduce your credit score.

Your credit limit can increase by opening a new credit card. But applying for credit creates a hard inquiry on your credit report. This is because lenders would always want to know if you can repay the loans they will give you. And ultimately, many hard inquiries can affect your credit score negatively. You can actually improve your credit score. But a hard inquiry on your credit score will remain on your credit report for 2 years.

2. You can dispute any inaccuracy on your credit reports

To be on the safer side, ensure you check your credit reports to spot inaccuracies. This is because there could be an error from the credit bureau that can affect your credit score. Once you spot an error in your credit report. Dispute it right away and ensure that the credit bureau corrects it immediately. Therefore, monitor your credit report regularly. It will help you spot inaccuracies before they can do damage to your credit score.

3. Do not close unused credit cards

It is better to keep your unused credit cards open than closing them. This is because you’ll not lose anything if you keep it open without it costing you annual fees. However, if you close them, it will increase your credit utilization ratio. 

4. Only open new credit accounts that you need

Unnecessary credit will most likely harm your credit score in so many ways. This is because it opens doors for so many hard inquiries on your credit report. Again, it can tempt you to overspend and incur debts.

5. Pay your bills promptly

Lenders are always looking out for borrowers who pay their debts promptly. If you could switch positions with lenders. Would you lend your money to borrowers who do not repay their debts? The answer is ‘No.’ Therefore, prompt repayments of debts ultimately increase your chances of getting credit. This is because the history of your payment will help them predict your future payment.

However, you can influence your credit score by clearing all your debts on time. Especially just as you and the lender agreed. To be on the safer side, ensure you pay all other bills. Bills such as; rent, utilities, phone bill, electricity bill, etc. But if you can’t pay on time, it will keep affecting your credit score.

Conclusion

A good credit score makes access to loans a lot easier for you. With it, you can easily qualify for the best interest rates and terms of loans from lenders. Besides that, it can also influence how much you pay for life insurance. However, some landlords would also consider your credit score before they can let you in. It is essential to ensure that your credit score is in an excellent condition, bearing in mind all these benefits.

Other related articles:

Loan requests and how it affects your credit score

Type of loans in Ghana you should know

Government programmes for agric loans in Ghana

In order to avoid disputes in the future, both the landlord (lessor) and the tenant (lessee) must sign a contract. It could be impossible for two people to embark on a journey together without agreement. This agreement goes a long way in ensuring that they don’t step on each other’s toes. Read on to find out more about a lease agreement.

What is Lease?

Lease is a contract that states the terms of agreement between and among parties. Especially the terms whereby one party agrees to rent the other party’s property.

It is usually between a landlord and a tenant. Here, the landlord guarantees the tenant’s properties. Whereas the tenant guarantees the landlord prompt payments for a period. However, consequences await both the landlord and tenant, if they cannot keep to the terms of their contract.

What should I understand about Lease?

Apart from the spheres of landlord and tenant. Overall, it is a legal contract that directs the terms of agreements. And these pertain to rental agreements in real estate and personal property.

In the lease contract, each party learns their duties in order to maintain their agreements. And also to entire it if need be, should any of them default.

What are the things a residential property includes?

In property agreements, there are several items they carry. But the following are what a residential property lease includes.

They are:

1. Address of the property
2. Landlord responsibilities
3. Tenant responsibilities
4. The rent amount
5. Security deposit
6. Rent due date
7. Consequences for breach of contract
8. Duration of the lease
9. Pet policies, etc.

They do not design all leases the same way. The most important thing is that both the owner of the property (landlord) and the tenant must have an agreement. And this should occur before the tenant occupies the property.

But for commercial lease, they usually negotiate it according to a specific lessee (tenant). And this could run from 1 to 10 years and could also have longer and complex lease agreements.

Having this in mind, both the landlord and tenant, because of necessity, must possess a copy of the lease. This will help them whenever disputes arise.

How do I break a Lease?

At some point, having endured so much and you need a breath of fresh air. Breaking out of a lease could be what you’re looking at. That’s especially if you have a better property to lease or if you have purchased your own house. However, some consequences could await you just as you break it. These consequences could be mild or even catastrophic. But this depends on the circumstances under which you broke the lease.

Case Study

If a tenant breaks a lease without negotiating it ahead of time with the landlord. Such a tenant could face a civil lawsuit and have a negative remark on his or her credit report. Because of this, the tenant might have difficulty in renting a new residence.

Read also letter of credit – meaning and how it works in Ghana

However, if you need to break your lease, seek legal counsel or negotiate with your landlord. Breaking this agreement sometimes wouldn’t mean much to the landlord. Especially when they already have a new tenant who can replace you. Because of this, you won’t have to worry about any consequence. Some leases have early termination clauses in them. This allows tenants to end their contracts when their landlord defaults the contractual obligations.

What are 4 common types of leases?

There are so many types, however, we will only look at 4 of them.

The following are the most common types of leases:

1. Absolute Net Lease

This type of lease typically works in single-tenant systems. Where the landlord builds the house to suit the tenant’s needs. And the tenant takes care of all the burdens, which include insurance, taxes, and maintenance. Therefore, the tenants are usually large businesses who know what the term is all about. And because of this, the landlord usually demands low monthly rates.

2. Triple Net Lease

There are three expense categories that come with this type of lease. They are; maintenance, insurance, and real property taxes. The landlord usually passes these expenses to the tenant as rent excesses. So they also call it a ‘pass-through or operating lease.’ In this type, the tenants contribute money for the maintenance of the building. 

3. Modified Gross Lease

Here, the landlord bears all the burdens alone. Including payment of all the taxes, maintenance and insurance that are within the terms. Except for interior maintenance costs, utility and so on the tenants will cater for. However, the landlord is usually responsible for expenses regarding roof and other structural aspects of the building. And because of this, the monthly rates are higher when you compare it to other types.

4. Full Service Lease

In this type of lease, the full service lease takes care of the cost of operating a building. Except for data and telephone costs, whereas the landlord will care for the rest. Which includes; taxes, interior, insurance, utility, maintenance and costs for the janitors. And because of this, the monthly rate will be slightly high. This is usually the case where you can’t partition the building into smaller spaces. Many people prefer this type because they can decide how they would like the building to look. 

Conclusion

Lease ensures that both the landlord and the tenant have an agreement they must follow to avoid misunderstanding in the future. And because of this, types of leases above will help you know the one you’d prefer. Ensure you keep to the terms of the lease you sign with your landlord. This will save you some consequences which could also affect your credit score.

Other related articles:

• Rent loans in Ghana – Where and how to apply
• How to get a mortgage loan from Republic Bank Ghana
• Types of loans in Ghana – Meaning and advantages

Credit cards help customers to use funds more securely. It curbs the chances of loss of cash and encourages cashless financial transactions. Large hotels and restaurants in Ghana accept payments with credit cards. You can also buy bitcoins with credit cards. Although the credit cards that are rampant in Ghana are Visa card, Mastercard and American Express. However, the use of credit cards in Ghana is still at an infant stage especially when you compare it to advanced countries.

What you should know about credit cards and how you can get it are all-inclusive in this article.

What is a Credit card?

A credit card is a short-term financing option that a commercial bank issues. This allows holders to borrow money at the automated teller machine (ATM). Besides that, they can pay for goods and services at a point of sale device using the credit card. The issuing bank of the credit card determines the limit a customer can borrow. However, before they issue the credit card, they assess the customer’s creditworthiness. 

Tips on how I can get a credit card in Ghana?

You can apply for a credit card from any of the issuing banks. But before you do that, ensure you meet the following criteria:

1. Have an active bank account with them

If you do not have a bank account with them, they would require you to open one. Thereafter, they would require you to run that account for at least a six month period. With that, they can watch your earnings and cash flow more closely.

2. Have a good relationship with the bank

Most times, the banks in Ghana rely a lot on the relationship clients have with them. And this relationship comes in when they make certain decisions.

3. Good credit history

Your credit history is essential in determining whether they’ll grant your credit card request. Once you have a track record of repaying your loans or credits with their interests promptly. They will not relent to grant your credit card request.

4. Employment

Before banks issue credit cards, they usually look out for customers who are employed. They could require information about what you do, if you are self-employed. Besides that, they could also want to know how you generate your income.

For salaried workers, they could require your employer to sign an undertaking. And your employer has to promise to always pay your salary through that bank.

What are the banks that issue credit cards in Ghana?

The knowledge of the banks that issue credit cards in Ghana will enable you to know where to apply for one.

The following are the banks that issue credit card in Ghana:

1. Ecobank Ghana
2. Barclays Bank Ghana
3. Stanbic Bank Ghana

Note: Only the credit card Barclays Bank issue caters for the needs of low and middle-income earners.

Ecobank has the following two types of credit cards:

• Advantage Gold Credit Card
• Premier Platinum Credit Card

You can apply for the two cards on an Advantage Current Account or a Premier Current Account.

Stanbic Bank also offers credit cards for high income earners, just like Ecobank. In order to know the card, which is the best for you, know the requirements by each issuing bank. When you know the requirements, then measure them with your income level. Besides that, if you feel you need more clarifications. You can visit any of their branches or call their customer service centers.

What are the advantages of getting a credit card?

Credit cards help customers to use funds more securely. Besides that there are other benefits of getting a credit card.

The following are some advantages of using a credit card:

1. A credit card can enhance living conditions

It can enhance your living conditions, as it provides a short-term financing option that you can access. Besides that, the short-term financing comes with flexible payback terms.

2. You can get discounts with some credit cards

You could also get discounts with some credit cards at partner shops and some retail centers. And this discount could be up to whooping 50% on all purchases at the issuing bank’s partners.

3. You can block the credit card if you lose it

This is one reason it’s better to use a credit card than cash. This is because when you lose your credit card, you do not lose your money. You can easily block it by informing your issuing bank immediately. And also you can easily replace it with a new one immediately.

4. They accept it worldwide

You can pay for goods and services with credit cards worldwide. Because of this, you do not need to have cash on you all the time to make payments.

What are credit card fees I might pay in Ghana?

There are some fees the issuing banks of the credit cards require you to pay in Ghana. These fees help them to keep the services of the credit card up and running.

The following are the usual credit card fees you can incur in Ghana:

1. Foreign transaction fees

On the amount of each foreign transaction, you could pay up to a 3% transaction fee.

2. Currency conversion fees

If you pay in foreign currency (especially the US dollars), they could charge you a currency conversion fee. Making such payments attracts a Dynamic Currency Conversion (DCC).

Conclusion

In Ghana, you can freely use a Visa credit card. However, you could also use Mastercard and American Express. But there’s a high probability of not accessing an ATM that uses them outside of Accra. This is because a cash withdrawal from ATMs can help you make payments at places that don’t accept credit cards. Although it could cost you additional fees. Ensure you do not overspend when you get your credit card.

Other related articles:

Debentures- Everything you should know

What is the difference between loans and debts

Debt consolidation loan: Debt consolidation in Ghana explained

Borrowing money these days is no longer a big deal. You can just borrow any amount of money you need from a lender through your mobile phone. Gone are the days you’d have to visit traditional banks before you can access loans. Besides that, the terribly long queues and disappointments are now things of the past. So there are money lending apps that offer you loan options. However, these loan options differ across lenders. But if you assess them, you’ll find the one that offers the best option that suits you. This article explains the meaning and some money lending apps in Ghana.

What is a money lending app?

Money lending apps are mobile tools that let you apply for a loan wherever you are. With this app in your mobile phone, you wouldn’t need to visit a bank for a loan application. Lenders who have the money lending apps usually make them available for download. Android users can download them from Google play store. Whereas iOS device users can download them on the App store. Most lenders let you apply and manage the loan on the mobile lending app. Whereas some lenders can only allow you to do that on their website.L

What are the money lending apps in Ghana?

In Ghana, these money lending apps will only give you access to the cash range. And this depends on the loan amount you need to start with.

The following are the money lending apps in Ghana:

1. KiaKia Loan App

KiaKia Loan app is one of the recent money lending apps in Ghana. It offers Ghanaians short-term loans which will help them cater for unforeseen expenses or urgent need of money.

With Kiakia you can apply for a loan 24 hours a day and seven days a week. This application involves a quick application process that will help you know your status within minutes. Besides that, the app offers loans without collateral and it is simple and fast.

2. Aella Credit Loan App

They introduced the Aella Credit Loan app for company employees who want to access cash anywhere at the most affordable rates. But overtime it has now become one of Ghana’s finest mobile money lending apps in Ghana.

Because of this, people can now turn to Aella Credit to seek fast loans to meet their emergency needs.

2. FairMoney Loan App

Fairmoney is one of the new easy money lending apps in Ghana. This app offers quick cash for the borrowers. And it comes as personal finance, vehicle maintenance, health emergencies, etc.

Fairmoney Loan app accepts loan applications in 5 minutes. And within that time, you can get an immediate reply with funds into your bank account. They also offer business loans to small business owners who want to expand their businesses.

3. Carbon Loan App

With few prompts alone, you can control your finances from the app. And you can send and receive money. Besides that, you can get short-term loans to solve your urgent needs. Also, you can invest money with the app to earn prime interest and pay for services.

Carbon Loan app lets you store money securely in your wallet. You wouldn’t have to pay any fee for that and they will pay you monthly interest. You can also get instant loans 24/7.

Carbon Loan app gives their customers a cashback when they repay on time. And they also give them loan top-ups. They do not allow late fees. You can make a free funds transfer to any Ghanaian bank account. When you invest with them, you can earn up to 16% interest. Besides that, you can pay your bills, recharge airtime or buy data for free.

4. Branch Loans App

In Ghana, the Branch Loan app is one of the best in money lending. It allows the borrowers to apply for credit on the go without collateral, and it also works 24/7.

They know it as one of the fastest loan apps in Ghana. Within seconds you can complete your loan application and get your loan directly into your bank account. The Branch Loan app is comfortable and reliable for its users.

Conclusion

Your creditworthiness is the overall criteria that determines whether you’ll get any type of loan from any platform. With the availability of various money lending apps in Ghana, don’t exploit these apps with many loan requests. This is because it could affect your credit score and could make you unable to access loans in the future. Besides that, ensure you repay any loan you get from the money lending apps on time. It will help you stay out of debt. However, it’s cool to stay away from debts, but it is also cool to meet your financial goals with debts. But this depends on your discipline to balance both. And ultimately get out of that debt in the end without affecting your credit score.

Related articles:

Best loan apps in Ghana 2021

How to get a quick loan in Ghana

Quick loans in Ghana – Everything you should know

Most people will first reach for their mobile phones once an emergency occurs. This is not because they are in love with their mobile phones. But because they need to reach out to their loved ones, probably either to get or render help if need be. However, you can’t make calls without credit (airtime). MTN offers credit that their customers who need them can borrow. The MTN package that borrows credit, how you can borrow and more are all-inclusive in this article.

What MTN package lends customers credit?

You must know the MTN package that lends customers credit in Ghana before you can get it. With this knowledge, you’ll therefore know you can borrow the credit whenever you wish and pay back in your convenience.

The MTN XTRATIME is the service that lends credit to customers in Ghana. With this service, subscribers who qualify can borrow and use the airtime. The duration of this credit subscribers borrow depends on how long they have been using the MTN mobile services. Besides that, MTN also considers how often these subscribers have been recharging their respective MTN lines.

How do MTN deal with the overdraft amount of customers in Ghana?

There are ways communication networks deal with overdraft amounts their subscribers use. This could be different across all communication networks. But for MTN XTRATIME service, they deduct it from the amount in the airtime top-up that the customer makes.

They make this feature available for both prepaid and postpaid subscribers of MTN subscribers.

How can I use the MTN XTRATIME service?

There is always a way into various services that communication networks offer. And MTN is not in exclusion. For you to use the MTN XTRATIME service, use the code for MTN ‘borrow me credit.’ When you enroll in the service, you can now access the range of the amount of credit you qualify for. Thereafter, it will now be in your own interest to choose the option of credit you can repay promptly. You cannot use the same short code you get to borrow credit from MTN for other MTN services. Except for the MTN XTRATIME service.

How can I borrow credit on MTN in Ghana?

You can borrow credit on MTN in Ghana conveniently. The MTN Ghana mobile network arranged a straightforward way for their subscribers to access credit of their choice and repay. You can borrow from 0.50 pesewas even up to GHS 10 to make calls, SMS, or even browse the web. Thereafter, you can pay back the credit. However, this depends on how frequently you purchase airtime before requesting to borrow the credit.

The following are the steps to borrow MTN airtime in Ghana:

1. Dial Dial *506#
2. Choose the amount of airtime you prefer from the options they give you
3. Choose 1 to confirm it
4. You can select the option ‘4’ to explore more (advanced) options

How can I check the info of the credit I borrowed?

It is cool to always check the info of the credit you borrowed. It will help you know how much left and when it could expire.

The following are how to check the info of the credit you borrowed:

1. Dial *506#
2. Select ‘6’ (Menu)
3. Choose option ‘2’ (Info)

How can I borrow MTN data bundles in Ghana?

You can use your data bundles to browse the web, download music and videos of your choice. Besides that, there are many things you can do with your data bundle on the internet.

The following are how you can borrow data bundles from MTN in Ghana:

1. Dial *506#
2. Choose 5. Then request a data advance
3. Choose any option from the data bundle you prefer
4. Confirm it by choosing 1.

How can I check for my outstanding credit?

If you think that you have an outstanding credit as a subscriber. It is important to know the amount you have as an outstanding.

The following is how to check for your outstanding credit:

1. Dial *506#
2. Choose the option ‘6’ (Menu)
3. Select the option ‘3’ (Outstanding credit)

How can I check my borrowed credit history?

While borrowing credits, always know that you have a credit history with MTN. The credit history will show your behaviour regarding borrowing and repaying overtime.

The following are how to check your borrowed credit history:

1. Dial *506#
2. Select the option ‘6’ (Menu)
3. Choose option ‘4’ (History)
4. Immediately, you will receive an SMS about your borrowed credit history.

Note: Have an active MTN SIM in use for 3 months or more to qualify for the credit. Besides that, they will charge you up to 10% of the credit you borrowed during repayment.

Conclusion

Airtime links people and their loved ones. Besides that, airtime can help you deliver a life saving message to someone. Because of the lack of airtime subscribers experience for some constraints. MTN offers credits to customers who qualify for them. And thereafter require them to pay back later. This is a cool initiative by MTN, isn’t it?

Other related articles:

MTN Xtratime in Ghana- How it works

MTN Qwik loan Review – What you should know

https://loanspot.io/gh/how-to-borrow-data-from-vodafone

Vodafone Cash Loan in Ghana

Have you ever dabbled into the debate of loan versus line of credit? Businesses and people can borrow money from lenders in two ways: loans and lines of credit. Therefore, as a lender, it’s always advisable to get the cash flow that best suits your needs. Therefore, read through this article to learn more about loan versus line of credit. 

What Is a Loan?

A loan has a set amount that the borrower’s need and creditworthiness determine. Just like other non-revolving credit products, they give a loan, like other non-revolving credit products, as a lump sum for onetime usage, therefore, unlike a credit card, you cannot use the credit advance repeatedly.

Loans are of two types; secured or unsecured. In most circumstances, some type of collateral, which is usually the same item that is used to secure the loan backs secured loans. For example, borrowers secure their car loan by the vehicle. If the borrower cannot meet their financial obligations and defaults on the loan, the lender has the option to seize the vehicle, sell it, and apply the revenues to the outstanding loan sum. If there is a balance due, they may allow the lender to pursue the borrower for the remaining balance.

Unsecured loans have no collateral to back them up. In most situations, they approve entirely these loans because of a borrower’s credit history, and they typically grant them for smaller sums and at higher interest rates than secured loans.

Because of the low risk involved with secured loans, they usually have lower interest rates. Because most borrowers do not want to give up their collateral, they are more likely to make their payments on time, and even if they do not repay the loan, the collateral keeps most of its value for the lender. Borrowers who take out unsecured loans pay much higher interest rates. The sort of loan an individual or corporation takes out determines the rate.

Types of Loans

The following are a few examples of common sorts of loans that lenders provide to borrowers:

1. Mortgage loan

A mortgage is a type of loan that is used to buy a house or other type of property and is secured by the property in question. A borrower must meet the lender’s minimum credit and income requirements in order to qualify. The lender pays for the property once they approve it. Then the borrowers make regular principal and interest payments until they pay off the loan fully.

2. Car loan

Car loans, like mortgages, are secured. The vehicle in question is the collateral in this case. The lender pays the seller the full purchase price minus any down payments given by the borrower. Borrower must follow the loan’s terms, which include making timely payments until they pay the debt off in full.

3. Debt consolidation loan

Consumers who apply for a debt consolidation loan can combine all of their bills into one. The bank pays off all existing debts if they grant the loan. Instead of making many payments, it simply requires the borrower to make one regular payment to the new lender. Unsecured debt consolidation loans are the most common type of debt consolidation loan.

4. Home improvement loan

You can get these loans with or without collateral. If a homeowner needs to make repairs to their property, they can apply for a home renovation loan from a bank or other financial organization.

5. Student loan

This is a frequent type of student loan that is used to pay for eligible educational expenditures. Student loans, often known as educational loans, are available through both government and commercial financing programs. They frequently rely on the student’s parents’ earnings and credit scores rather than the student’s own, although the student is ultimately liable for repayment.

6. Business loan

Commercial loans are another name for these types of loans. Business loans are specialized credit solutions offered to small, medium, and big enterprises to assist them buy additional merchandise, hire employees, continue day-to-day operations, or when they simply want a financial infusion.

What Is a Line of Credit?

A line of credit is not the same as a loan. When a borrower is allowed for a line of credit, the bank or financial institution gives them a specific credit limit, which they can spend in full or in part repeatedly. This results in a revolving credit limit, which is a far more flexible borrowing option. Credit lines, unlike loans, can be used for anything from routine purchases to exceptional requirements like vacations, small repairs, or paying off high-interest debt.

Note: They approve both loans and lines of credit based on your credit rating and financial history. Besides that, your relationship with the lender is also important.

Read more on Line of Credit and its types

What is the major difference between a loan and a line of credit?

If you aren’t too sure about the major difference between a loan and line of credit. This spot of this article will clarify that. Here it is:

Non-revolving credit limits apply to loans, which means borrowers can only access the amount they borrowed once. Besides that, they must make principal and interest payments until they pay off the debt. Whereas a line of credit functions differently. Like a credit card, they give borrowers a credit limit in which they must make regular payments. And this includes both principal and interest to pay it off. 

Conclusion

Having seen the difference between a loan and line of credit, you can now choose which best suits your financial needs. Hopefully, this article has cleared the air regarding the misunderstanding you might have had about a loan and line of credit.

Other related articles

Types of loans in Ghana – Meaning and advantages.

Debt consolidation loan in Ghana explained

SME loans in Ghana- What you should know

Loan syndication is a potent source of funding for business organizations and also an important revenue earner for banks. You could imagine what could become of business organizations without lump sum loans to expand their businesses for a higher profit. So, a lender who can’t risk lending an enormous loan amount can share it with other lenders (syndication). Therefore, this is one reason there is loan syndication.

As you read along, you’ll understand loan syndication, its agent and more.

What Is Loan Syndication?

Enlisting a variety of lenders in funding various portions of a loan for a single borrower is what they call loan syndication. When a borrower seeks a loan amount that is too high for a single lender to provide, or when the loan is outside the boundaries of a lender’s risk exposure thresholds, loan syndication is most common. Because of this, they form a syndicate of lenders to give the money to the borrower.

Understanding Loan Syndication

In corporate finance, they commonly use loan syndication. They use corporate loans for several businesses, including mergers, acquisitions, buyouts, and other capital expenditure initiatives. These types of capital projects sometimes cause enormous sums of money, which are typically beyond the resources or underwriting ability of a single lender.

Because they share the risks with several lenders, loan syndication allows any one lender to issue a large loan. While keeping a more responsible and controllable credit exposure. It restricts the obligation of each lender to their proportionate part of the loan interest. Except for collateral requirements, most terms are the same between lenders. For each lender, they usually assign collateral assignments to distinct assets of the borrower. Typically, a single loan arrangement covers the entire syndicate.

To avoid misunderstandings and enforce contractual responsibilities, lending parties and loan beneficiaries’ a corporate risk manager frequently supervises the agreements. The primary lender performs most due diligence, although insufficient oversight can increase company costs. A company’s legal counsel may also enforce loan agreements and lender requirements.

LSTA is the acronym for The Loan Syndications and Trading Association. It is a well-established organization that aims to give resources on loan syndications to the corporate loan market. It facilitates the gathering of loan market participants, conducts market research, and takes part in the development of compliance procedures and industry laws.

Loan Syndicate Agent

In most loan syndications, a lead financial institution coordinates the transaction. The syndicate agent is the name given to the major financial institution. This agent is frequently in charge of the original transaction, fees, compliance reports, loan repayments during the life of the loan, loan monitoring, and overall reporting for all lending parties.

To assist with various parts of reporting and monitoring, they may hire a third party or additional specialists at various points. And this is usually during the loan syndication or repayment process. Because of the extensive reporting and coordination it requires completing and maintain loan processing, loan syndications frequently charge significant fees. Fees might amount to 10% of the loan balance.

Case Study of a Loan Syndication

Company XY wants to purchase an airport the owners abandoned and convert it into a large development. Which includes a sports stadium, multiple apartment complexes, and a mall. It is looking for a loan in the size of GH₵1 billion.

Company XY heads to VinFinance to discuss getting a loan, which VinFinance agrees to, but because the loan is such a gigantic size and greater than VinFinance’s risk tolerance. Therefore, the bank forms a loan syndicate to provide the loan to Company XY.

VinFinance acts as the lead agent on the syndicated loan, bringing together other banks to take part. It contracts the Bank of Ghana, Absa, CalBank, and UBA banks to take part in the loan. VinFinance contributes GH₵300 million to the loan, and they share the remaining GH₵700 million between the remaining members of the syndicate. Bank of Ghana lends out GH₵200 million, Absa GH₵100 million, CalBank GH₵250 million, and UBA GH₵150 million.

Conclusion

In loan syndication, they do not require the borrower to deal with different banks. Because of this, the management of loans becomes more efficient. After negotiation of terms and conditions with the borrower, the arranger handles syndicate formation. They only require the borrower to deal with the facility agent in favour of all lenders regarding drawdown and repayment. Besides that, loan syndication has a high flexibility in structure and currency. So, with this information in your mind, you’d rather seek a lump sum loan with more management efficiency. That sounds cool, doesn’t it?

Other related articles

Corporate loan- Meaning and what you need to know

Debt financing – What you need to know

How to get a loan from Consolidated Bank Ghana

Letter of credit – Meaning and how it works in Ghana