Step 1: Research Market Price

We start by conducting market research to determine the current price of the item being used as collateral. This involves searching various online platforms such as Facebook, Whittier, WhatsApp business groups, Instagram, and other business platforms to find similar items and their corresponding prices.

Step 2: Apply 50% Loan Ratio

To determine the loan amount, we then reduce the item price by half, or 50%. Doing so ensures that we provide a loan amount that is in line with the collateral's assessed value.

Note that it eventually follows that if you would like to take a specified loan amount, the value of the item required as collateral will be twice the amount of the loan needed.

Example 1:

Let's say you have a smartphone for which the market price is MK 250,000. Applying the 50% loan ratio, the loan amount you could potentially receive would be MK 125,000.

The other way round, it is clear that if you want to take a loan of MK125,000, the market price of the item to be offered as collateral should be MK250,000.

Please note that the loan amount mentioned above is based on the assessed value of the collateral and may be subject to further verification and negotiation during the lending process.

Should you have any further questions or require a personalized assessment, please do not hesitate to contact us.