By Providence Ayanfeoluwa

A firm, SeedFi, a digital-first loan company, has said that it seeks to expand access to credit for the growth of Nigeria’s economy by targeting small business owners, artisans, and others without credit history required by traditional banks.

Founder/Chief Executive of SeedFi, Mr. Pelumi Alli, said that 67 percent of Nigerians do not seek credit, even from family and friends, due to non-availability of data for decision-making; limited access to formal credit/financial services to certain demographics; lack of financial education; and lack of trust in the system.

Alli said the firm would also mitigate the challenges of SMEs by providing financial education and trust-building activities with consumers; sharing information on how to build a good credit profile; how to manage personal finance; and providing flexible repayment structures.

While explaining that SeedFi was created out of a need to reduce the risks around lending from the standpoint of data, he said it also provides access to seed funds to borrowers by leveraging data from various data sources to assess creditworthiness and offer loans to individuals and businesses with limited or no formal credit history.

He stated: “At SeedFi, our vision is a world where the dreams of young Africans are supported through access to credit and financing. We are improving the credit experience for borrowers, and managing risk for lenders by gathering and learning from different data touch points. We bridge financing gap by providing flexible, convenient, and affordable digital lending solutions that are tailored to meet the needs of our customers, wherever they are’’. 

Also, Co-Founder and Chief Commercial Officer SeedFi, Samaila Dogara, explained that with cluster, a group lending feature that allows customers to take loans in groups to meet specific financial needs, the group members are accountable to one another for repayment of their loans so that each member maintains a good credit score.

“SeedFi does not charge any hidden fee, and all fees are explicitly stated before they are charged. One of our core values is integrity and transparency which means that we present our terms and conditions in clear terms that are easy to understand; we do not access customer information without their consent; and upon loan approval, we provide an offer letter with an apparent breakdown of the loan terms and repayment schedule which customers are encouraged to read and accept before the loan is disbursed’’.