Frequently asked questions (FAQs)
Is there any similar app on the Uganda Market providing the same service?
No. Finablr is the first of its kind network application that operates our unique and specialized matching model that unites consumers and providers of finance in the Tier 4 market space.
Do I need collateral security to access loans through Finablr?
Yes. Presently Finablr is being operated on a secured basis where collateral is a must to guarantee the safety of lenders investments on the system. However, soon EFL shall be releasing Finablr-for-salary which is a version of Finablr that utilizes salary income as security thereby allow registered company have their employees access instant loans through Finablr.
How do I join the Finablr network?
Presently, with the exception of lenders who simply have to fill in the Finablr Application form apply online or directly at office, admission for borrowers to Finablr is by invitation from EFL or referral by already existing borrowers and Lenders. This approach is only temporary and intended to ensure a strong foundation based on more than just collateral but also trust, integrity and community. This shall ensure the long term self-sustenance of the system even after it has been open to all. Referred or invited borrowers are required to also fill the Finablr application form.
Will my collateral be disposed of if I default on a loan?
Regrettably, yes. However, in the name of transparency and integrity, we have endeavored to make extremely clear the system that we shall follow in the event of default all the way up to disposal. We are glad to announce that it is indeed a rather lenient system that allows defaulters up to 63 days before the collateral is open to disposal; a process that would involve joint participation by EFL, the borrower and the lender. It is important for borrowers to approach any kind of credit finance with caution, organization, responsibility and awareness that it is a possibility for declared collateral to be lost to disposal in the event of default. This shouldn’t scare borrowers however but only bring to their attention the need to be more diligent, prepared and open to the possibility before even taking on a loan. An added advantage with Finablr is that EFL maintains contact with buyers of collateral and therefore should the borrower later on want to attempt to buy back the lost collateral, we can create an avenue for negotiation.
What are the interest rates through Finablr?
Finablr is designed such that the interest rates are set by the borrower but determined by the fair market forces of demand and supply. Lenders are naturally going to be incentivized to drive their interest rates down to what would be acceptable to the borrower especially with an increase in lenders on the system. However, rates usually range between 4-20% per month. Borrowers with higher ratings based on past performance stand even greater chances of receiving very lucrative interest rates from lenders.
As a lender through Finablr, is my principle guaranteed by EFL?
No. EFL does not guarantee borrower repayment. However, what EFL guarantees is the existing and safe custody of the borrower’s collateral which can be used to recover any lost principle, interest or fees. The fact that borrowers can only request for up to 40% of their collateral value further secures the possibility for recovery should the need for disposal arise.
How much in loans can I access through Finablr and for how long?
Finablr allows borrowers to borrow up to 40% the value of their declared and appraised security. Borrowers can borrow for up to 3 months in a row; a timeline that is only gets better with improving performance of the borrower.
Can I borrow directly from EFL?
Yes. EFL just like any other money lender is a registered and licensed business offering a variety of loan products and infact now and then borrowers through finablr may receive loan offers from us. However, we generally have chosen to focus more on Finablr as a solution with the potential to make much more meaningful impact in the Tier IV market space than any single Money lender could possibly make. Clients are completely free to approach any other registered money lender not on the Finablr system. Ultimately we hope to bring as many Money Lenders as possible together on a united front where we are better in position to serve our clients and also engage with National institutions in a more impactful and holistic way.
Can I lend through Finablr if I am not a registered money lender?
Yes. However in this case you would be operating in partnership with EFL and therefore right of admission to this service is more reserved to EFL. Additionally, this would be a time-bound partnership upon the expiry of which you would be expected to be in position to register your business and acquire your license-a worthwhile venture. This is our way of promoting the Tier IV service space and we welcome you all to apply. Contact us for more information.
Why is Finablr exclusive? Why is entry only by invitation or referral?
First, we must point out how much we regret for this to be the temporary arrangement. Unfortunately unlike most other products and services, finance as a product in itself can be rather more contentious than most as history has taught us all. It is very common for finance to very quickly create volatile environments even unnecessarily. And yet at the same time, it is essential to all at all levels of operation in society. The fact that it is a variety of lenders’ capital at in play even though at will only calls for more precaution as it is our priority to promote a low risk environment for them as it is our duty to safeguard borrower’s collateral. So in order to strike a balance between the two while factoring in known risks, the safest way we believe we can optimize is by letting the network grow naturally from within held together by the core values we believe in. It may cause delay in service outreach however sooner or later, all borrowers that genuinely would like to join shall be encountered. Products such as finablr-for-salary however shall be open to all eligible applicants.
Can I use my salary as security for a loan through Finablr?
Not just yet. Soon EFL shall be releasing ‘Finablr-for-salary’ Loan product which is a version of Finablr that factors in salaries as security against loans. This would be a product for companies/enterprises/organisations/corporations that are open to partnerships toward the service. This product would give employees of registered companies instant access to loans through Finablr on specialized terms and only secured by their salaries.
As a lender already in business, why should I/we lend our money through Finablr and not directly?
Not only does Finablr not stop active money lenders from going on with their own business as usual with already acquired clients but on the contrary, Finablr compliments and boosts already existing trade. Through Finablr, lenders not only gain access to as simple information management, a payment integrator which presents convenience to clients but also more importantly with finablr, lenders gain access to an even broader network of potential borrowers and networking opportunities; all reasons beyond just the trade that a lender could benefit from by joining Finablr.
How long does it take for my loan to be processed after receiving an offer from a lender?
Depending on whether or not your collateral may require reappraisal, this usually takes 1-5 working days. It may extend to 7 working days where the approved sum exceeds Ugx. 20,000,000.
What happens after a lender has made an offer to my loan request on the app?
Once you are matched with a lender, you shall shortly after receive a call from EFL inviting you to our office to submit your collateral into our custody and sign the loan agreement. At this stage, the loan transaction shall occur.
As a lender, do I have to report to EFL offices to sign the loan agreement with the borrower?
No. A lender has the option of e-signature using EFL recognised digital signing platforms as are shared with lenders. E-signatures are recognised and protected by the Electronic Signatures Act 2011 of Uganda. However, a lender is welcome to report to EFL office to sign physically if he/she prefers.
What happens if my loan request is not funded fully or even at all by any lender?
If your loan is not funded within 7 days, your loan request will be removed from the marketplace. We will then contact you with your options, which may include taking the best loan counter offer received, withdrawing your request completely, or resubmitting your loan request for the same or a lesser amount.
What happens if I miss my loan repayment?
You are advised to contact EFL in this first instance on via whatsapp on 0706400078 or via email on firstname.lastname@example.org for assistance, if you miss a repayment installment or realise you will miss an upcoming one. We shall assist in negotiations with the lender.