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Kudejah Ali: Personal Loans Manager

SEPTEMBER 2008. Kudejah Ali: Personal Loans Manager. Our Business. Service Cost to client Money and Debt Advice Free Microcredit Business Loans 12-19% APR (£2,000-£10,000) Personal Loans 28-35%APR (£200-£2000). Why do we deliver Personal Loans.

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Kudejah Ali: Personal Loans Manager

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  1. SEPTEMBER 2008 Kudejah Ali: Personal Loans Manager

  2. Our Business Service Cost to client Money and Debt Advice Free Microcredit Business Loans 12-19% APR (£2,000-£10,000) Personal Loans 28-35%APR (£200-£2000)

  3. Why do we deliver Personal Loans • People deserve a fair and affordable alternative • People should have access to a range of services so that they can make informed financial decisions and feel confident about their choices. • Provide services which aim to improve the well being and financial capability of individuals

  4. The market rates Lender Average APR Provident 183% Morses Ltd 365% CLC 1564% Pay Day lending 1000% Unlicensed 10000%+

  5. ENQUIRY APPLICATION AND IDENTIFICATION LOAN INTERVIEW LOAN ANALYSIS LOAN MEETING APPROVED DECISION REJECTED REASON WHY LOAN DISBURSAL MONITORING ARREARS & DEFAULT MANAGEMENT END OF LOAN How does it work

  6. Who are our clients Retired Student/other Unemployed Working FT/PT Homemaker

  7. Impact 2005 - 2008 • 2 Loan officers from 2007 • Interviewed 2500+ clients and given them basic financial support • Approved 1000 Loans in 3.5 years • Made over £700,000 in loans • Saved clients over £500,000 in saved interest payments • Bad debt rate (181+days) of 5% • We have helped many of our clients escape the clutches of predatory lenders charging extortionate rates.

  8. Funding Revenue • Current • Self generated interest payments – 45% • Charities supporting the educational aspect of loan making – 30% • Government Funds – 25% • Within 3 years • Self generated – 85% • Charities – 15% • Government – 0% Capital • Current • Government 50% • Banks 10% • Own recycled funds 40% • Within 3 years • Government 0% • Banks and Private investors 50% • Own recycled Funds 50%

  9. Challenges • Small is not always beautiful – we need to grow to make an impact and be sustainable • Training good staff – low defaults and good loans are down to well trained and motivated staff • Clarity on the service – not confusing the client or ourselves about what we are doing, and keeping the work simple • Brand identity – making sure our message and marketing makes sense to clients • Funding/Investment – securing enough capital to grow our business at affordable rates • Maintaining the portfolio – keeping defaults low aw we grow • Product Development – meeting the needs of the clients as they change • Marrying business and community interests (Hard headed but soft hearted) with partners and staff

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