Starfold Digital Micro Finance

Starfold Digital Finance (SDF) is a Micro Finance Lending Business proposition that comes due to the increased demand for Personal and MSME Finance with convenience. SDF will leverage on its efficient and state of the art technology to process loan requests, carry out due diligence, disburse loans and gather repayments. There will be development of an App and Website through which SDF will gather; Know Your Customer(KYC), develop customer relationships and provide access to Finance such that the customer journey will be 70% electronic and 30% physical where physical verification is needed on collateral. There has been an increase in Micro Finance companies because banks focused on Government securities whose yields on a 5yr Bond rose to 32% while a year’s Treasury bill was at 24% on average. A Bank of Zambia report has revealed that the level of outstanding loans to households grew by an average annual rate of 9.8% from K10.4billion by December 2016 to K15.7billion by December 2019. The growth rate was above the average real annual GDP growth rate of 3.2% for the same period. The average lending rates in Zambia are 25.150% per annum as at July with the posture of stability taken by the new government in maintaining the Monetary Policy Rate at 9%. SDF will generate revenues through Interest Income ranging from 20%-26% on Loans, processing fees ranging from 0.5%-2% on each facility issued and Interest on deposits with the bank. SDF is applying for an FDI through a joint venture of $550,000 of which $50,000 will go towards facilitation of the development of our Website and App development which will start upon capital acquisition, Office set up, Marketing and promotion during the first 6 Months in Operations. $500,000 will be used for loan disbursements. The main office is in Lusaka and will later expand countrywide starting from the 2nd year of operation.

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