MPOWA finance is a loan product and online lender of MPOWA. MPOWA was created in 2012 in a deal between South African FNB Bank and UK International Powa Technologies Group PLC. It was supposed to introduce a cashless debit and credit card paying system. The system uses mobile phones connected to a system provided by Powa Technologies.
MPOWA Finance is the company’s online platform that offers unsecured loans to salaried South Africans. It can be accessed using the MPOWA Finance website or the MPOWA Finance app. In case you find yourself in need of a quick loan before your next payday, then you should consider getting MPOWA loans. Find out more about these payday loans here.
Qualifying Criteria for MPOWA Loans
There are two types of MPOWA loans. These are, secured loans and unsecured loans. Secured loans are given by lenders using your assets as collateral. They use the value of the assets to determine whether or not you are eligible for the loan. The company gives a loan of up to 75% of the estimated value of the collateral asset. Unsecured loans, on the other hand, are offered by lenders dependent on your financial situation and using your affordability to decide whether or not to give you the loan. If they do, the amount is also determined by this assessment.
MPOWA Finance provides an unsecured short-term loan online. The lender uses your personal details to decide your eligibility for the loan. Since it is an online only cash loan, you must first have access to the internet. You also must be a citizen of South Africa. Lastly, you must pass the affordability assessment administered by the MPOWA loans.
Documents and Affordability Criteria
Since MPOWA Finance loans operate only in South Africa, it is only available for South African citizens who are 18 years and above. You must prove that you are a South African citizen. Ensure you have your National Identification card or booklet. They will ask for the number as well as other contact details like a cell phone number and email. So ensure you have those ready.
Affordability assessments depend on your monthly salary, outstanding loan repayments and expenses. You will be asked to state how much gets into your bank account after deductions (net salary). After which you will be asked to state the total amount you spend each month on rent, food, groceries, clothing and school fees. The terms and conditions state that the information you supply should be “true, correct and complete.” If you apply using bank statements, they should be for at least three months bank statements prior to the day you apply. So ensure you have those downloaded, scanned, or in your email.
After you state your monthly salary, the lender will require you to provide information about the amount you spend every month to repay any outstanding loans, including debit orders. Your outstanding balance after all these deductions, usually determines the loan and the principal amount you’re given. If you have a high amount left, you will qualify for higher loan amounts and vice versa.
How to Apply for MPOWA Loans
MPOWA Finance loans are only available via an online loan application. All the steps you take in the loan application process are taken online. Fill in the online application form for an instant decision on how much you can borrow. They will then perform a credit check, looking at your credit history and credit rating. If you want to get the loan on the same day, ensure you submit the application before 3:00 pm.
- A loan contract will be emailed to you instantly. Ensure you read and understand the contract and repayment terms before you sign it.
- Sign all the required documents online by following the instructions on site or the app.
- Upload your latest three months payslips or salary bank’s bank statements.
- Record the details of your contract on a cell phone call. You will get a call from MPOWA Finance to complete this step.
- Authorise the DebiCheck payment request from your bank. You must do this, otherwise you will not get the loan. In order to receive the loan on the same day, authorise the request before 4.00 pm on weekdays. For weekends, you must authorise it before 11.00 am on Saturdays to get it on the same day. To get it the next day, authorise the request before 8.00 pm on weekdays.
Get the money in your account on the same day (at around 5.00pm) if you applied before 3.00 pm on weekdays.
Cost of MPOWA Finance Loans
MPOWA Finance only offers short-term loans of up to 6 months. The maximum capital amount you can get on the loan is R 8,000. The minimum you should apply for is R500. An MPOWA Finance loan will cost you:
- An initiation fee charged at 16.5% of the capital amount for the first R1,000 with additional VAT,
- 10% initiation fee levied on the next capital amount above R1,000 with additional VAT,
- R 60 monthly service fee plus additional VAT, and
- An initial interest rate of 5% per month on the first loan then 3% per month for the loans you take after that.
For more details or to get clarification on the costs for MPOWA Finance loans, contact MPOWA Finance personally.
Advantages of MPOWA Loans
- MPOWA Loans are instant cash loans. You can get them on the same day, with instant approval, if you apply before 3.00 pm on weekdays or 11.00 pm on Saturdays.
- They are also convenient for anyone with access to the internet. The application, authentication, processing and loan deposit are all done online.
- Third, the lender lets you borrow at 3% monthly interest within a year after your first loan application. Your previous loan with them in must be repaid in full. This first initial loan is given at 5% monthly interest.
- MPOWA service delivery is good. It has improved overtime to getting good reviews on Hellopeter as opposed to bad ones they used to get a few years ago.
- MPOWA is secure. The lender has SSL certification with VeriSign, which ensures the connection you are on is encrypted. It is registered with the NCR (National Credit Regulator). It uses two pacts to seal the loan contract deal, an online signature and a voice cell phone recording. And then upon getting into a loan contract, the repayment is made using DebiCheck, the new secure debit order system.
Disadvantages of MPOWA Loans
- The loan is only accessible online. Which means the customer base is limited. Anyone who does not have internet access or prefers brick and mortar finance services may not use take out this loan.
- Secondly, the monthly service cost is expensive and pointless for a one month loan. Which is the most sort after short term unsecured loan.
- Lastly, failed debit orders can have a bad impact on your credit score and cost you extra punitive charges from your bank. In case there is a change in the bank account or employment, you are supposed to inform MPOWA Finance so that they renew the terms of your contract to avoid a situation like this.
In Summary
MPOWA Finance Loans are online short term unsecured loans. They have a term lasting for a minimum of 1 month and a maximum 6 months. The capital amounts for these loans are anywhere between R500 and R8,000. The interest rate is 5% for the first loan and 3% for any loan within 12 months after that. There is a R60 per month service fee. There is an initiation fee, 16.5% of the capital amount for the first R1000 then 10% for any amount above that plus additional VAT. These are the charges you should expect if you take out the MPOWA Finance loan.
To qualify for the loan, you must pass an affordability assessment that ensures you are able to make monthly repayments for the loan you need. For this, MPOWA requires that you provide your bank statements or payslips for the latest three months as well as the total amount of your monthly expenses. You are also supposed to be a South African citizen of 18 years old and above. For contacts, the bank will require your email and cell phone number. You should prepare the documents with these information or the state recognised numbers for them.
Before you decide on the loan, look at its advantages and compare that to its disadvantages. Although loans are good things for pressing needs, the wrong loan might leave you in a worse off financial state than you could be. Look at the price for the loan and make sure you do your calculations to find out how much more you’ll pay in the long run. Although MPOWA Finance does currently not have a loan calculator but there are several third-party loan calculators you can use in case you don’t know how to calculate the cost of a loan.
While applying for the loan, ensure you read all through the contract and understand it. Also ensure that you have provided truthful, correct and complete information. Any false information may lead MPOWA Finance to deny your loan application.
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