Following a successful launch of ExpressCredit Botswana on Mintos, ExpressCredit now offers you investment opportunities from Zambia as well, through its local company YesCash Zambia Limited. Now you can invest in its Zambia-issued personal loans and enjoy returns of up to 14%.
ExpressCredit prides itself on its customer service and endeavours to give its clients a personal approach through its seven branches and two sales offices in Zambia, with more branches to be opened in 2018. It was incorporated on May 11, 2016, and obtained a non-deposit taking microfinance institution licence on December 23, 2016, from the regulatory governing body, the Bank of Zambia. Some of the equity investors in ExpressCredit and Mintos overlap.
Currently, ExpressCredit primarily offers short-term loans to its customers and matches the repayment dates of the loan to their salaries. It also offers instalment loans to employees of institutions from the Government of Zambia. The company has received a PERMIC code from the Office of the President under the Public Service Management division which allows the company to directly debit repayments from the borrower’s salary. For borrowers who are not employed by the Government, the repayments are directly debited from their bank account. As a result, ExpressCredit loans from Zambia have one of the lowest default rates on Mintos. Initially, the loan originator will place its short-term loans for investment on Mintos, which it issues to non-Government employees.
“ExpressCredit is pleased to expand our presence on the best marketplace for loans in the world. Our mission is to deliver accessible and affordable financial solutions through superior customer service and technological innovation to become one of the top microfinance organisations in Zambia. Our partnership with Mintos and continuous investments in technology, branch network and people will ensure that we follow our mission,” says Chilufya Mutale, CEO of ExpressCredit.
The average Zambia-issued short-term loan from ExpressCredit is around EUR 137 and you can expect a net annual return of up to 14%. Borrowers repay the loan in a single instalment after 30 days.
All loans from ExpressCredit on Mintos are secured with a buyback guarantee and will be bought back by the company if it becomes delinquent for more than 60 days. In addition, the company will maintain 15% of each loan placed on the marketplace on its balance sheet as its skin in the game.
As of February 2018, ExpressCredit had a total loan book size of more than EUR 3.6 million. After its business launch in the fourth quarter of 2016, the company reached its first positive EBITDA in November 2017, while recording its first net profits after tax in February 2018. The company achieved EUR 164 thousand of total profits in its first two months of operations in 2018. The company is continually looking at opportunities for innovation and increasing its ability to cater for all of its customer’s needs.