Aposhashamura

Frequently Asked Questions (FAQ)

What is CONETFIL?

CONETFIL is an acronym for the words- Corporate Network of Financiers, Investors & Lenders. It is a service designed by Aposhashamura Finance Limited, owner of Aposhashamura® loan platform.

  • It is an innovation that is developed primarily for one of the Aposhashamura market segment categories- The Sophisticated Opportunist (TSO)
  • It is running on a sub-platform of the Aposhashamura Loan Platform, referred to as Aposhashamura Tenant Board (ATB). Use this link https://tenantportal.aposhashamura.com
  • ATB is designed to host TSO as Money Lenders under a tenancy arrangement

This service was created;

  • To create a platform for TSO who are willing to start a journey into the FinTech Industry Space.
  • To provide an investment platform for TSO who are willing to participate in the loan service market but are not ready to undergo the technicality & the manageability of setting up & managing the day-to-day activities of a loan service platform
  • To encourage TSO who are willing to promote financial inclusion have a quick start at granting borrowers’ quick loans
  • To provide a platform where TSO can manage and grow their personal finance/wealth while they service the under-served loan service market
  • To provide an investment theme for TSO to earn Returns on Investment (ROI)

Who is a TSO?

sophisticated person is intelligent and knows a lot, so that they can understand complicated situations while an Opportunist is a person who sees a chance to gain some advantage from a situation, often at the expense of ethics or morals. An opportunist seizes every opportunity to improve things for himself!

A Sophisticated Opportunist:

  • is an average age person & a reasonable income earner with clear investment goals
  • is very knowledgeable about Banking System and Finance.
  • is the most satisfied with their Primary Financial Institution
  • makes right investment decisions & always on the look out for Investment opportunities
  • is patient & willing to watch an investment makes the highest yield
  • is Risk Averse

With the above knowledge, Aposhashamura innovated this service called CONETFIL-Corporate Network of Financiers, Investors & Lenders. Aposhashamura Finance Limited is providing TSO with right tools to allow them to delve into the FinTech space as a Money Lender

Who is a Tenant?

A Tenant is any TSO who has signed up on the Aposhashamura Tenant Board as a Money Lender.

Who can sign up as a Tenant on the Aposhashamura Loan Platform as a Tenant?

Anyone who is interested in participating & investing in the loan service market. The party can either be a Business Starter (BS), or a Business Owner (BO).

Business Starter (BS)

Business Owner (BO)

 

A Business Starter may or may not have a Registered Business Name

 

A Business Owner must obtain a Registered Business Name from Corporate Affairs Commission (CAC).

·Business Account must be a Limited Liability Company with at least, two members constituting the Board of Directors.

·Memorandum & Articles of Association (MEMART) must reflect categorically that business is into money lending

 

A Business Starter do not have to establish a business relationship/secure an account with Aposhashamura Payment Aggregator- Paystack Payments Limited

A Business Owner must establish a business relationship with Aposhashamura Payment Aggregator- Paystack Payments Limited.

 

Aposhashamura Money Lending License covers for a Business Starter because of their modus operandi that leverages on a defined transactional structure which complies with CBN regulation

A Business Owner must comply with CBN regulations by obtaining Lagos State Money Lending License

REQUIREMENT FOR THE PROCESSING OF MONEY LENDERS’ LICENSE

  1. A cover letter / Application letter
  2. Application Form -Ten Thousand Naira (NGN 10,000.00)

LIST OF DOCUMENTS TO BE ATTACHED

  1. A Money Lender Ordinance (Form B 1938 Magistrate Court)
  2. Duly completed and endorsed Form C- Chief Magistrate Court
  3. Police Report from Commissioner of Police– Showing the Finger print of Resident Directors/Board of Trustees/Applicants
  4. 3 Years Income Tax Clearance Certificate (Including current year)/Development Levy for Individual Applicant.
  5. Pay-As-You-Earn (P.A.Y.E) Certificate, Tax Clearance Certificate of at least two (2) of its Resident Directors and evidence of payment of Company Tax
  6. Certificate of Incorporation of Company from Corporate Affairs Commission; Articles of Association to reflect Moneylenders’ Business
  7. Evidence of payment of Application Fee to the Lagos State Government Account.
  8. Inspection of the premises by Officials of the Ministry of Home Affairs.
  9. Reference Letter from Banker
  10. Issuance/Registration of Money lenders’ License – N 50,000.00

*   Yearly License Renewal Cost – NGN 25,000

** Bank Account details to be supplied   by the Account Department

NB: Aposhashamura Legal Team provides assisted service of procuring a Money Lending License for interested Business Owners at a cost of N450,000 (Four Hundred & Fifty Thousand Naira only) at a duration of 8-12 weeks for businesses provided they can make available Tax clearance certificates of two members of the board of directors. Businesses without tax clearance certificates is billed NGN700,000 (Seven Hundred Thousand Naira only)

Interested BO should contact [email protected] 

All loans are disbursed to Borrowers using Aposhashamura Business Name

A Business Owner may choose to use its Business Name to disburse loans to borrowers. The transactions will simply be routed  on the Aposhashamura platform but carries the name of the Business Owner

How can a TSO on-board the Aposhashamura Tenant Board?

It is simple. Visit https://tenantportal.aposhashamura.com & click the Sign-up button

What is the Subscription Fee & the Minimum Amount a Lender should have before onboarding?

At the beginning of each tenancy, a subscription fee applies and renewal fee in subsequent Tenancy years. The signup fee varies per Tier of Investment. Each Tier of Investment is characterized by a monthly trading limit & number of pre-approved loans a Tenant can disburse per day as shown in table.

TRADING TIER

SIGNUP FEE PER TIER

ANNUAL RENEWAL FEE @ (SUBSEQUENT YEARS)

LOANS ALLOCATED DAILY

Tier 1:
₦100,000 — 1,999,000

 

NGN 12,500

NGN 6,250

5

Tier 2:
₦2,000,000 — 4,999,000

 

NGN 50,000

NGN 25,000

10

Tier 3:
₦5,000,000 — 19,999,000

 

NGN 125,000

NGN 62,500

25

Tier 4:
₦20,000,000 — 49,999,000

 

NGN 500,000

NGN 250,000

50

Tier 5:
₦50,000,000 — 99,999,000

 

NGN 1,250,000

NGN 625,000

100

How do I get Borrowers to Lend to?

Each Tier of Investment is characterized by a monthly trading limit & number of pre-approved loans a Tenant can disburse per day. Aposhashamura provides Tenant with Pre-approved Loans daily.

Must I disburse all the loans I receive daily?

No. Aposhashamura provides loan that has been duly scrutinized. You may accept or reject a loan offer.

Will I get another loan to replace any loan I reject?

No. You will wait for the next day allocation

What Information does Aposhashamura provides of a Borrower to a Lender?

  • Can view Approved Loans on queue awaiting action to be taken by the Tenant
  • Can view borrower’s Personal Information except Phone no. & Email Address, Banking Information except BVN, Employment Information, Guarantor Information except phone no. & email address and Past Loans, if any.
  • Can view System or Paystack Account Balance available to grant loans.
  • Have Access to ‘Grant’ or ‘Reject’ an Approved loan that has been checked for credit worthiness and meets eligibility requirements
  • Can view real-time transaction history of their investment including deductions and balance of either the System or Paystack balance as disbursements are executed periodically.
  • Can view Loan Repayments on Due or Overdue Payable with date.
  • Cash view daily Cash Payouts as borrowers repay their loan with interest
  • Can view Loan Due Dates
  • Can view Payouts on daily basis
  • Can view history of all transactions made

What types of Loan are available on the ATB & how long?

Aposhashamura offers loan in 3 categories- Mini, Midi & Maxi Loans.

  • Mini Loan – NGN5, 000 – NGN 50,000. This loan runs for a minimum Tenor of 30 days & maximum Tenor of 180 days
  • Midi Loan- NGN51,000- NGN 250,000; This loan runs for a minimum Tenor of 60 days & maximum Tenor of 180 days
  • Maxi Loan- NGN 251,000-NGN 1,000,000; This loan will run minimum Tenor of 90 days & maximum Tenor of 180 days

Interest rate on all loans vary between 0.005-1% daily

What Loan Products are serviced with the Loan Types?

Loan Product Desciption Transaction Dynamics
Unsecured Personal Loans (UPL) Aposhashamura UPL allows customers to borrow our MINI Loan ONLY without any form of collateral. However, eligible candidates must have & meet the following requirements respectively:
  • Bank Verification Number (BVN)
  • Bank Account No.
  • A valid form of Identification
  • At least 1 bank debit card
  • High Credit Score
  • Must provide Guarantor Details
  • Must Provide Employment Details
  • All details must be validated through accredited Service Providers
Download the Aposhashamura App on Google Playstore to proceed
Secured Personal Loans (SPL) Aposhashamura SML Loan allow customers have access to Aposhashamura MIDI & MAXI loan using a form of easily realizable asset as collateral- Motor Vehicles, Jewelries, Banker’s Cheque etc.

However, eligible candidates must have & meet the following requirements respectively:

  • Bank Verification Number (BVN)
  • Bank Account No.
  • A valid form of Identification
  • At least 1 bank debit card
  • High Credit Score
  • Must provide Guarantor Details
  • Must Provide Employment Details
  • All details must be validated through accredited Service Providers
  • Collateral
Download the Aposhashamura App on Google Playstore to proceed
Asset Finance (*new) Aposhashamura Asset Finance is a type of Lending that gives Borrowers access to Business Assets such as Equipment, Machinery and Vehicles or enables us to release cash for assets that are already owned while using the same asset as collateral.  Customer initiates an Asset Finance request through the App. If request is approved:
  • Customer uploads a Proforma Invoice from an accredited vendor
  • Customer makes a 30% down payment
  • A loan is set for the customer while the Vendor Account is credited with the Invoice value
  • Vendor generates an Invoice & forward to the Insurance company who insures the Asset stating Aposhashamura as First Loss Payee
  • Upon receipt of Insurance cover, Aposhashamura issues a pick-up slip to the Customer for Asset pick-up
HMO Finance (*new) Aposhashamura HMO Finance (*new) is one of our newest initiatives. This product is designed for consumers:
  1. who are in need of basic healthcare services & seeking for a chance at survival but cannot afford one-time payment of HMO Insurance Premiums
  2. who are not willing to make outright payments for their HMO Insurance Premiums

Aposhashamura has been able to exemplify an established emotional connect & psychological balance associated with perception of Healthcare as luxury, instead of basic necessity of life, among some classes of consumers.

The HMO Insurance Premium Finance is a strategic innovation that will accommodate all classes of consumers but unique to its projections are the low-income earners who earn daily, but in piece meal & have seen healthcare as 'not affordable'. This product will cause another disrupt in the HealthCare Sector as it will help Nigerians overcome the daunting mindset of 'Healthcare is not affordable' & embrace the fact that 'Healthcare is a basic necessity of life' with the help of Aposhashamura HMO Insurance Premium Finance.

  • Customer initiates an HMO Finance request through the App. If request is approved:
  • Customer uploads a Proforma Invoice from an accredited HMO Agent
  • Customer makes a 30% down payment
  • A loan is set for the customer while the Vendor Account is credited with the Invoice value
  • Vendor generates an Invoice & forward Aposhashamura
  • Upon receipt of Invoice, Aposhashamura issues a pick-up slip to the Customer for HMO card pick-up

What are the STRENGTH, WEAKNESSES, OPPORTUNITIES & THREATS of the Loan Service Market? What are my risks & mitigants?

Strength

  1. Technology or Innovation has come to disrupt the traditional ways of conducting financial transactions. Technology has disrupted the usual rigor of endless loan processes involved with the conventional loan approval processes; people want access to quick personal loan to meet their immediate and emergency needs. Aposhashamura knows that technology is evolving and there are continuous improvement opportunities. Such a good opportunity is the Peer-to-Peer Lending system. Aposhashamura is positioned to constantly implement and scaleup its technological needs in tandem with these forgoing changes. We know what it takes to build an upscale web and mobile applications that can provide excellent Peer-to-Peer Lending service delivery. We have identified the market needs, understands the Peer-to-Peer Lending Platform technology and tactically positioned ourselves to build a service platform that brings the two together.
  2. Enabling Government Policies. Financial regulators and policy makers are generally interested in promoting technology companies and solutions. Regulations in this context refer to the processes and procedures adopted within this segment of the financial industry in Nigeria, in order to oversee, regulate, monitor or control its activities. They define certain parameters within which FinTech should operate and subjects us to certain requirements, guidelines and/or restrictions aimed at promoting transparency between us and our customers, among others, while allowing for continuous innovation in the absence of a direct, harmonized, and cohesive regulation on FinTech in Nigeria.

    CBN and NIBBS launched a regulatory sandbox for small companies titled 'Financial Industry Sandbox' to be coordinated by Financial Services Innovation Association of Nigeria under their supervision. The purpose of the sandbox is to enable innovation by allowing for experimentation and rapid cycles of adjustments in a contained environment without full compliance with all regulations. The Sandbox is empowering small companies, which we refer to as start-ups, innovators, technology companies and young Nigerians that have great ideas operate.
  3. Adequate Data Analysis. There are different third-party systems within the Financial Services Industry that validates information provided by a borrowers such as Credit Registry Bureaus who provide Credit History, Rating & Scoring, etc. Information provided by these systems are mostly enough to determine a borrower’s credit worthiness status & make a loan decision.
  4. User friendly Web & Mobile Application. 
    1. Customer Experience
      Our web portal and mobile application are user friendly; simple to use, fast, easy, secure, powerful and responsive. The site and mobile app are developed with tailor-made business processes that give our customers an amazing loan application experience on any device- phones, note pads, palm top, even desktop. The web and mobile App are fully secured against fraud & illegal entries.
    2. Investors Experience
      The Aposhashamura Tenant Board (ATB), https://tenanportal.aposhashamura.com, is designed to exemplify seamless business process, with simple transparent transactional processes.

Weakness

  1. A huge capital investment is needed to meet the ever-increasing market demands
  2. Risk factor associated with online loan services. Online loan services are challenged by two familiar risks.
    1. Risk of loan defaulters; usually, there is tendency of 1 out of every 10 loans go bad occasionally. However, Aposhashamura has devised a workable means and strategies to mitigate such frequent occurrences such as:
      1. Implement pre-approval credit checks on every customer before disposal to militate against unsuspected online fraudsters and their menace
      2. Loan is not availed to applicant with negative credit report or history report, no employment history, no phone no. or home address history on credit report, no loan.
      3. Borrowers who supply incoherent data that does not match data obtained during BVN checks are automatically declined
      4. Allowing borrower to climb the growth curve steadily. Loan offer increases as borrower repays previous loan as at when due
      5. Obtain applicant’s debit cards with not less than 9-month validity; Paystack Charge Authorization feature is programmed to check borrower’s bank account, minimum of four times daily, for availability of funds. Anytime the bank account is funded, the debit/credit card is automatically charged
      6. Scheduled reminder. Aposhashamura’s system initiates SMS & email reminders 7 days to loan expiration to prepare a borrower to fulfil obligations on loan due date
      7. Due Payables repaid in instalments. To reduce any borrower’s exposure to Aposhashamura per time, ‘Charge Authorization’ is programmed to ensure to deduct as low as N250 from a borrower’s bank account if the ‘Due Payable’ is not available in the borrower’s bank account at the time it checks. Infact, our system is built to check for 100%, 50%, 25%, 10%, and 5%, NGN500 or NGN250, of the due Payable, in that order.
      8. Apply ban. If a borrower defaults on the previous loan, the system only applies a 2 -day grace period & penalize the borrower based on the no. of days after due date. For example, if a borrower overdue on repayment by 10 days, the system takes 2 days off, the borrower will not be eligible to make a loan application, until 8 days after
      9. Inform borrower’s guarantor, sometimes Employer in cases of defaults. During sign up, borrower provides Aposhashamura with guarantor/employment information. Most loan recovery processes were successful because of the intervention of the guarantor/employer
      10. List loan defaulters on Credit Bureau Registry. The fear of tagging a person as defaulter on Credit Bureau Registry, which consequently have an adverse effect on credit reports/rating influences a borrower’s mindset to repay loan, even if it not immediately, but eventually
      11. If a borrower dies. The loan automatically becomes a bad loan
    2. Cybercrime. Technologically-based products are prone to cybercrime. Working out strategies to militate cyber related crimes is key, hence security is priority for Aposhashamura   operations as online loan service business is a virtual venture where there are unsuspected dubious individuals. Aposhashamura will constantly scaleup its security infrastructure to curb and control this menace. The security features of the Aposhashamura system remains a trade secret which is necessary to avoid attacks.
  3. A dependence on third-party technology. Aposhashamura Payment Process & Data Validation Process is technologically dependent on the efficient service delivery of several third-party systems. This implies that any downtime or capacity issues experienced by these third parties will have great effect on the business and result in slow turn-around time and inconsistence business cycle. However, efforts are being made by Aposhashamura to make critical processes independent. Foe example, Aposhashamura is looking at becoming its own payment processor. This is one of development strategy, which we hope to achieve in nearest time possible.

Opportunities

  1. The Advantage that Financial Technology will increase efficiencies behind the scenes. Investment in financial technology has since recorded increase in recent years. Much of these technologies lend itself to the path of financial institutions. Online lending platforms available today incorporate not only the ability to attract clients online, but also the capacity to quickly route applications to the appropriate person within an organization. They also allow for much greater efficiency in managing deal workflow, lender pipelines, and incoming financial data from business clients thereby facilitating quick application process. These tools significantly shorten loan turnaround time without sacrificing unique ability to customize each request to local market conditions and local credit approval.

  2. Search Engine Optimization (SEO) targets Fin-Techs. While working online, if a search for “small personal loans” is conducted, it is very likely one will not see a Community Bank or Credit Union until page three or later. This is an area where alternative money lenders have taken over. In fact, Fin-Techs are capturing much of the business. To absorb our share of the market, Aposhashamura is enhancing its own market its Peer-to-Peer Lending.

  3. Attract more customers through Education. Prospects ask for financing without really knowing what type of financing is needed. While we have had to decline many such loans because borrowers hardly understand why and what conditions would have to be in order to become credit-worthy. Our P2P Lending Platform has a unique opportunity to spend a little extra time with prospective clients through its many features. Help the borrowers to understand the conditions that exists per finance. Help them to understand our analysis and how it impacts loan decisions. We harness tools available to financial institutions today which allows us to help educate our market without crossing the line of offering consulting services. Most small borrowers, whether they realize it or not, have an informal advisory team.

  4. Enabling Government Policies. Loosened Regulations could increase earnings for Aposhashamura & its Financiers, Investors & Lenders in the present and future. The CBN and NIBSS have a regulatory sandbox. While allowing for continuous innovation in the absence of a direct, harmonized, and cohesive regulation on FinTech in Nigeria, the purpose of the sandbox is to enable innovation by allowing for experimentation and rapid cycles of adjustments in a contained environment without full compliance with all regulations

Threats

  1. The Sheer Market Presence of Larger Institutions. Each quarter, we see more banks with over 10 billion Naira in assets and fewer below that number venturing into the online and mobile loan platform. This trend has been influenced by the boom in the loan service market activity since the recession. The largest five banks in Nigeria awakened to the online loan service industry assets. With those increase, it is easy to see how small scale per capital organizations can feel like David up against several Goliaths. Small-Scale Loan Service Company, however, maintain a very important role in the financial services industry in that it is closer & also interacts with the lower end of the market segment better. It’s just that the sheer gravitational pull of these giants can impact everything from pending regulations, to rates and services, etc.
  2. Alternative Lenders still impacting the market for small business loans. While a few of the alternative lenders took their punches during 2013 when the Fin-Techs market began to boom, the emerging industry is not going away. Regulatory scrutiny will, no doubt, have an impact in the years to come but online lenders will continue to thrive. Aposhashamura will soon open the small business loan category, known as Midi-Loan between 51,000 and 250,000 and creates products for different market segments regularly. We are a well-structured organization, with a robust technology system. We will outlast such regulatory scrutiny, since we have obtained and continually positioned to obtain more licenses and required approval from Accredited and Authorized Regulatory Institutions.

How does a Tenant (Business Starter) cash-out repayment made by borrowers?

  1. All Repayments taken from a borrower’s Bank Account by Paystack are updated real-time and simultaneously on the Aposhashamura’s account with Paystack, Aposhashamura backend system and dashboard of the Tenant that grants the loan. Paystack then prepares the receivables for settlement into Aposhashamura’s designated Bank Account depending on time the borrower’s bank account is charged.
    • All collections completed during the weekday is settled into Aposhashamura’s designated bank account the next weekday
    • All collections completed on weekends (i.e. Friday-Sunday) is settled into Aposhashamura’s designated bank account on Mondays
    • All collections completed on a public holiday is settled into Aposhashamura’s designated bank account on the next workday
  2. Aposhashamura Tenant Board is enabled to permit two easy cash-out processes for Business Starters
    1. Transfer to System Balance (TSB): The Payout balance is transferred to Tenant’s System Balance making the fund available to grant loans
    2. Payout to Bank: This process will initiate a cash deposit to the Tenant’s designated Bank Account. Tenants are eligible to make withdrawals 3 months after the initial sign-up date. Then, subsequently, 3 months after the previous cash out date

How does a Tenant (Business Owner) cash-out repayment made by borrowers?

All Repayments taken from a borrower’s Bank Account by Paystack are updated real-time and simultaneously on Aposhashamura’s account with Paystack, Aposhashamura backend system and dashboard of the Tenant that grants the loan. Paystack then prepares the receivables for settlement, using the ‘split payment’ feature on Paystack into the Tenant’s designated Bank Account & Aposhashamura designated bank account accordingly; depending on time the borrower’s bank account is charged.

  • All collections completed during the weekday is settled into Aposhashamura’s designated bank account the next weekday
  • All collections completed on weekends (i.e. Friday-Sunday) is settled into Aposhashamura’s designated bank account on Mondays
  • All collections completed on a public holiday is settled into Aposhashamura’s designated bank account on the next workday

How often can I cash out to the Bank as a Business Owner?

Anytime

For more information, please Contact Us

All rights reserved. Aposhashamura Finance Limited is a State Licensed Money Lender with License Number 0000220. Aposhashamura Finance Limited is incorporated in Nigeria (RC 150927).