Credit Policy
Whereas Anthill Capital is a private company with its own ethos and values, found on the principles of integrity, compassion and innovation, it is a Micro Finance Institution governed by the Micro Finance Act [Chapter 24:31] as amended and shall endeavor to comply in its operations with the Micro Finance Core Client Protection Principles (CCPPs) as elaborated below.
1. General Treatment of Clients
Whereas Anthill Capital is a private company with its own ethos and values, found on the principles of integrity, compassion and innovation, it is a Micro Finance Institution governed by the Micro Finance Act [Chapter 24:31] as amended and shall endeavor to comply in its operations with the Micro Finance Core Client Protection Principles (CCPPs) as elaborated below.
2. Prevention of Over-indebtedness
Credit control staff should ensure that credit facilities are offered only based on need and repayment capacity of the borrower. Obtaining a loan should not impoverish the borrower such that their standard of living will go down while trying to service the loan. Thorough background checks should be made to establish creditworthiness of potential clients, their credit history, sources of income and the collateral to be expected from them.
3. Transparency
There should always be full disclosure to clients on all terms and conditions to obtain a loan stated in plain and simple language. The client should be made aware of the rate of interest, whether it will be fixed or floating, simple or compound, the terms of repayment, collateral required, instances of default and penalties and all other fees charged pursuant to the processing of the loan. All this must be explained clearly in a language that the client understands.
4. Privacy of Client Data
A high level of confidentiality with regards to client data shall be maintained at all times by all staff members of the institution. No details on any dealings between the institution and its clients shall be divulged to anyone not authorized to access such information or used for any marketing or promotion purposes.
5. Collateral Security
The value of the pledged item should not be more than double the value of the amount borrowed. The institution shall keep the security item in safe custody at its own risk and return it to client upon repayment in the same condition as it was brought in. the item cannot be utilized for any purpose while in the custody of the institution. In the event of default, the institution shall first obtain a writ of execution from the High Court before disposing the item. In situations whereby the value of the item is more than double the value of loan, upon disposal, the institution shall reimburse the borrower the excess amount.
6. Corporate Social Responsibility
The customer Relations Officer shall assume the role of credit advisor to clients in order to foster individual client relationships, giving advice on the best products and services suitable for a particular client. The customer service officer would educate clients on best practices and explain adequately the institutions’ terms and conditions thus enabling clients to make informed decisions when committing to a contract of loan.
7. Debt Collection Practices
Credit control staff should behave in a dignified manner towards borrowers and should never humiliate or degrade them. Clients should be properly educated and advised on the procedure in terms of default and the penalties levied. This information must be incorporated in the terms and conditions which the borrower should be fully made aware of before signing the contract. There shall be no home or work visits to collect money owed without prior consent by client. No stressful recovery methods should be applied like withholding ATM cards and postdated cheques and also visiting homes (where prior consent was given) during public holidays, Sundays or family gatherings.
8. Feedback and Grievance Mechanism
The institution’s grievance handling procedure shall be displayed at the front office at all times where it would be visible to all clients. Every complaint shall be attended to and if possible remedied within a reasonable time. Clients should be made aware of their right to take their complaints up with the Registrar at the Reserve Bank of Zimbabwe when not satisfied with the institution’s remedy. All records of complaints shall be logged and kept.