Mobicred assumes all the credit and fraud risk. The merchant is paid in full for the transaction and Mobicred assumes all of the risk of recovering the money from the customer. Payments are made once a week; this is outlined in greater detail in the Merchant Agreement.
Applicants need to meet the following minimum criteria:
- Be at least 18 years of age.
- Earn a minimum monthly salary of R5,500.
- Submit three months most recent bank statements or payslips.
- Have an existing valid bank account, email address, RICA’d mobile number and a valid South African ID number.
Mobicred doesn’t have a lot of fraud because of the level of detail that we go into during the application process:
- Mobicred has access to bureaux data.
- Bank account holder verification.
- Proof of Income documentation.
Yes, approval of applications are subject to Mobicred’s Credit Risk & Affordability criteria, and in accordance with the National Credit Act’s “Responsible Lending” principles. If, for whatever reason, an application is declined, mobicred will inform the applicant as to the main reasons for being declined.
It depends on what sort of customer the merchant attracts. On average the approval rate is 25 to 30% however some merchants that attract a young, trendy customer that doesn’t have a very good or long credit record is sitting at 22 to 25%. Some other merchants, for example those that sell sophisticated electronic goods, have approval rates of up to 45%.
Mobicred is NCA (National Credit Act) regulated and interest is currently capped at 20.25%
The customer may want to use mobicred to make multiple purchases over a range of sites