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MISTER CASH GROUP FINANCE Lending Policy

Purpose:

To establish clear and responsible lending practices to minimize risk while providing financial support through payday loans, pension loans, and emergency loans to pensioners, disadvantaged people, and workers in South Africa.

A. Minimum Loan Requirements (in accordance with the National Credit Act)

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To qualify for a loan with Mister Cash Group Finance, you must meet all of the following:

1. Age – Must be 18 years or older.

2. Valid Identification – South African ID or valid foreign passport with a legal permit.

3. Proof of Income – Must show regular, verifiable income for the last 3 months.

4. Bank Account – Active South African bank account in your own name.

5. Affordability – Disposable income after all expenses must be enough to cover instalments (as per the National Credit Act affordability assessment).

6. Credit History – No excessive defaults, judgments, or listings that indicate high credit risk.

7. Debt-to-Income Ratio – Your total monthly debt repayments should generally not exceed 30–40% of your gross monthly income.

8. Required Documents –

   • Valid ID or passport with permit

   • 3 months’ recent payslips or proof of pension/grant income

   • 3 months’ recent bank statements

   • Proof of residence (not older than 3 months)

9. Compliance with the NCA – We can only grant loans if it will not be classified as reckless lending under the National Credit Act.

B. Income Verification:

Income will be verified through official documents reflecting consistent and reliable earnings.

Clients with irregular income must submit at least three months of bank statements to determine the average monthly income.



C. Loan Caps:

Loan amounts are capped based on the client’s risk profile as follows:

Low-Risk Clients (Stable Income/Pensioners): From 10% Up to 25% of verified net monthly income.

Medium-Risk Clients (Disadvantaged/Challenged): From 10% Up to 20% of verified net monthly income.

High-Risk Clients (Irregular or Unstable Income): From 5% Up to 10% of average net monthly income.


Calculation:

> Loan Cap = Net Monthly Income × Loan Percentage



Example:
If a worker earns R10,000 per month and falls under the low-risk category, the maximum loan amount will be:

> R10,000 × 25% = R2,500




D. Interest Rates and Fees:

Interest rates vary based on the client’s risk profile and loan type.



F. Repayment Methods:

All repayments are conducted via DebiCheck debit order to ensure secure and automatic payments.

Repayment terms are structured based on the loan amount and client category to minimize financial strain.



G. Penalties for Late Payments:

A penalty fee will be charged for each late or missed payment.

Clients will be informed of the penalty amount during loan approval.

Clients are encouraged to communicate in advance if they anticipate payment difficulties.



H. Default and Collection Policy:

If a client defaults on a payment, they will be given 20 business days to settle the outstanding amount.

If payment is not made within the given period:

The account will be handed over for formal collection.

Alternatively, a repayment plan may be negotiated with the client to recover the outstanding balance.



I. Communication and Support:

Channels: SMS, email, and phone calls will be used to communicate with clients regarding payment reminders, updates, and collections.

Financial Literacy and Support:

Clients will be educated on responsible borrowing and financial management.

Support will be offered to clients struggling to meet repayments, with possible restructuring of the loan.



J. Policy Review:

This policy will be reviewed periodically to ensure compliance with regulations and alignment with the business’s strategic goals.