Overview

H&M is a personal loan option designed to cater to the short-term financial needs and emergencies of salaried workers who have good credit habits, consistent savings habits, stable employment, and proof of residence. Here are some relevant details about H&M:

1. Loan Amount

   • Minimum Loan Amount: The minimum eligible loan amount is GHS 500.
   • Savings Contribution: Customers must make a minimum savings contribution of at least 5 percent of their monthly income
   • Credit Score: Applicants must have a minimum credit score of 60.
   • Minimum Monthly Income: The customer's monthly income should be at least GHS 2,000 to qualify for a loan amount of GHS 500
   • Maximum loan amount is GHS 20,000
   • Eligibility for loan amount is calculated using H&M Microfinance's eligible loan model which considers available income (income - assumed expenses - debt expenses - monthly savings), loan period and pension/investment/savings assets (not exceeding 80% of pension/investment/savings assets). Customers without certain habits (savings or insurance) may receive a reduced loan amount. For more information, visit Our Lending Model
2. Collateral Requirement: Loans above GHS 10,000 require collateral. We accept various forms of collateral, such as post-dated cheques, pension assets, insurance policies, Stocks and Bonds or savings account
3. Payment Terms: H&M offers flexible payment terms, and the loan has no prepayment penalties
4. Disbursement Time: The funds can be disbursed within 24 hours after loan approval
5. Interest Rate: The interest rate for the Loan is based on five components, including the cost of funds, cost of operation, cost of credit risk, customer-specific risk premium, and desired profit margin
6. Processing Fee: In addition to the interest rate charged, H&M Microfinance charges a separate processing fee of 3% for new customers

Types of Short-Term Financial Needs and Emergencies that H&M can be Used for

• Medical Emergencies: H&M can be used to cover unexpected medical bills or hospitalization expenses
• Car Repairs: If your car requires unexpected repairs, you can use H&M to cover the cost.
• Home Repairs: If your home requires repairs, such as fixing a leaky roof or replacing a broken appliance, H&M can be used to cover the cost
• Education Expenses: If you need to pay for tuition fees or other education-related expenses, H&M can help
• Travel Expenses: If you need to travel urgently, but don't have the funds, H&M can be used to cover the travel expenses
• Wedding Expenses: If you're getting married and need to cover wedding expenses, H&M can help
• Debt Consolidation: If you have multiple debts with high-interest rates, H&M can be used to consolidate your debts into a single loan with a lower interest rate

Getting a personal loan with H&M Microfinance is easy if you meet these requirements:

• Give us permission to access your credit data and agree to our terms and conditions on our website
• Have a valid Ghana Card number and be verified through biometric information or a picture.
• Be employed with your current employer for at least 3 months and provide proof of employment, such as your first payslip or an employment letter
• Use a mobile money number that's been active for at least 3 months and is in your name
• Provide the most recent 3 months payslip or a letter from your employer that itemizes your salary payments
• Show us a bank or mobile statement with salary payments for the most recent 3 months
• Show proof of payment for bills and loans by submitting either a bank statement or mobile money statement and receipt and invoices
• Provide us with your credit history, including loan repayment and bills payment behavior, including the length of history and how many times you missed payment to determine how well you have managed credit in the past. For both loan repayment and bills behavior, your history must include the most recent 3 months repayment record. You need to provide us with both loan repayment and bills payment behavior; only one will lead to a lower credit score. Also, the length of the loan repayment and bills payment behavior should be long; the longer, the better. Be honest to tell us how many times you have missed both loan repayment and bills payment behavior payment in the past, as we will corroborate with credit bureaus and utility companies
• If you have savings habits, provide us with recent 3 months savings contributions and savings account statements
• Agreement with Pension trustee that in case of default or death your pension asset will be sent to H&M Microfinance
• Prove your residence, such as with proof of ownership or tenancy. We may need to visit your residence to complete the loan application if proof isn't provided
• Make sure your social media accounts accurately reflect your education level, occupation, and nature of employment
• To make loan repayments easier for you, H&M Microfinance offers two options for scheduled payments: standing orders and mobile money auto deductions. A standing order is a payment schedule set up with your bank, while a mobile money auto deduction is a payment schedule set up with your mobile money operator or employer. To set up a standing order, please submit a scanned copy of a standing order form from your active bank account with the following details:
  • Account name: H&M Microfinance MICRO-CREDIT ENTERPRISE
  • Bank: Guaranty Trust Bank (Ghana) Limited
  • Branch: ONE AIRPORT SQUARE BRANCH
  • Business Banking Easy Savers account number: 2231077320140
  Alternatively, you can set up a mobile money auto deduction by following these steps:
  • Type in the number 0549 060 777 and enter the loan amount
  • Select "H&M Microfinance MICRO-CREDIT ENTERPRISE" when it appears
  • Choose the frequency of payment (daily, weekly, or monthly)