Enhancing Financial Well-being for Tier 3 Pension Contributors in Ghana

CedisPay My Financial Wellbeing Customer’s Newsletter – November 9, 2023

Enhancing Financial Well-being for Tier 3 Pension Contributors in Ghana

Introduction:

CedisPay's purpose is to connect individuals to their financial goals by offering friendly, reliable, low-cost, and fast financial services such as loans in a responsible manner, accompanied by flexible terms and support for the development of healthy financial habits, ultimately fostering financial well-being. In this newsletter, we explore how CedisPay's mission aligns with our commitment to empower the underserved, particularly Tier 3 pension contributors in Ghana.

Challenges Faced by Tier 3 Pension Contributors in Ghana:

Tier 3 pension contributors in Ghana represent a diligent and financially prudent demographic, known for their dedication to saving for a secure retirement. While participation in Tier 3 pensions is voluntary, many contributors face a significant predicament. They are hesitant to withdraw their savings due to potential tax implications, even when faced with pressing financial emergencies.

The Tier 3 pension withdrawal process offers a vital tax advantage, with early withdrawals within ten years incurring a 15% tax rate, making contributors think twice about utilizing their savings.

Contributors often find themselves in urgent need of financial services, particularly in the form of loans. Unfortunately, the current financial landscape presents several challenges, including:

1. High Fees: Contributors encounter financial institutions that impose substantial fees, adding to the overall cost of borrowing, making loans less accessible and affordable.
2. Exorbitant Interest Rates: Excessive interest rates disproportionately burden borrowers, deterring them from seeking loans even in times of financial need.
3. Limited Convenience: Traditional lending processes lack the desired convenience, particularly during emergencies, forcing contributors to navigate complex and time-consuming procedures.
4. Slow Processing Times: Lengthy loan processing times exacerbate the challenges faced by contributors, who require swift access to funds in critical moments.
5. Unsatisfactory Customer Experience: Conventional financial institutions often fall short of meeting contributors' expectations, leading to frustration and dissatisfaction with the overall customer experience.

Addressing these multifaceted challenges is imperative to ensure that Tier 3 pension contributors in Ghana can access loans conveniently, affordably, and quickly during emergencies, thereby enhancing their financial well-being and security.

Solution Statement: Introducing the Pension Backed Loan:

?In our relentless pursuit of enhanced financial well-being and access for all, CedisPay is proud to introduce the Pension Backed Loan—a groundbreaking solution designed to combat high fees, exorbitant interest rates, limited convenience, slow processing times, and an unsatisfactory customer experience.

What is CedisPay Pension Backed Loan

CedisPay Pension Backed Loan opens the door for tier 3 pension contributors with:

???????? Budget-friendly financing boasting low interest rates

???????? Friendly service that's as warm as your favorite cup of cocoa

???????? Reliable support to make your financial journey a breeze

???????? A seamless, smile-inducing customer experience, backed by your pension assets.

CedisPay Pension Backed Loan connects tier 3 pension contributors to their financial goals through an affordable loan solution, featuring low interest rates, friendly service, reliability, and a swift, satisfying customer experience for their financial needs. ?

Key Features of the Pension Backed Loan:

1. Remarkably Low-Interest Rates: This innovative loan offers an exceptionally low-interest rate of 2.5%, annually at a mere 30%, significantly lower than Ghana's reference rate of 32%. At CedisPay, your financial stability is our top priority, and this favorable rate reflects our commitment to your financial well-being.
2. Convenient Application Process: Recognizing the importance of convenience, we've designed a streamlined application process, allowing you to apply from the comfort of your home. We've simplified the journey to provide quick access to the funds you need during critical moments.
3. Financial Well-being: Cultivating Sound Financial Habits and Goals: We are unwavering in our mission to help individuals from all walks of life improve their financial circumstances. Our commitment extends to supporting you in cultivating sound financial habits and achieving your goals.
4. Comprehensive Financial Identity: Beyond Traditional Credit History: Our unique approach transcends traditional credit history, offering a comprehensive financial identity. We consider various parameters to establish a holistic financial profile, empowering access to the broader financial services sector, even for those without a credit bureau credit history.

At CedisPay, we are dedicated to empowering you with the financial tools and resources you need to thrive. Your financial well-being is at the heart of everything we do, and the Pension Backed Loan is just one of the many ways we're working to transform the financial landscape for the better.

The Need for Collaboration between CedisPay and Pension Trustees: At the core of this groundbreaking product is the necessity for collaboration between CedisPay and Pension Trustees in Ghana. These trustees, serving the contributors, are poised to take on crucial responsibilities to facilitate the successful operation of the Pension Backed Loan program, including:

1. Referral of Customers: Secure Pensions Trustee plays a pivotal role as a referral partner for our Pension Backed Loan program, guiding eligible customers toward this innovative financial solution, collectively enhancing their financial well-being.
2. Custodianship: Our vision incorporates Secure Pensions Trustee into a critical role as a custodian, ensuring the utmost security and integrity of pension assets utilized as collateral for the loans.
3. Collateral Management: In addition to the above, Secure Pensions Trustee will manage and, if necessary, liquidate the collateral held as cash in case a customer defaults. This added responsibility ensures the financial security and seamless operation of the program.

Requirements for Your Application:

To apply for the Pension Backed Loan, you will need to provide the following:

1. Ghana Card: Proof of your identity.
2. 3 Months Bank and Mobile Money Statements: To verify your financial history.
3. Proof of Current Address: To confirm your residential details.
4. Proof of Full-Time Employment: Demonstrating your commitment to stable employment.
5. 3 Months Payslip: Providing your income details.
6. 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

Our innovative product is designed to empower you with financial possibilities like never before.

Loan Terms to Know:

?? Interest Rate: A competitive 3 percent per month.

? Loan Term: A comfortable 12 months.

?? Loan Amount: Determined by the lower of 3.5 times your monthly income minus debt expenses or 80 percent of your pension asset value and a maximum of GHS 20,000.

? Processing Fee: A modest 2 percent.

Apply for Pension Backed Loan today.

We invite you to explore the financial opportunities that await you with CedisPay's innovative loan offering. Here's how to get started:

1. Visit our website here- https://cedispay.com.gh/
2. On the homepage, select "Pension Backed Loans" as your preferred loan type.
3. Choose your Tier-3 Pension Contribution Company from the list.
4. Follow the application process, and our dedicated team will guide you through every step to ensure a seamless and convenient experience.

We extend our heartfelt gratitude for your trust and support as we advance our mission to empower the underserved.

Emmanuel Akrong CEO, CedisPay