All You Need To Know About the KiaKia P2PReading Time: 5 minutes
The Background Story
Nigeria prides itself on the comity of nations as an oil-rich economy, but in reality, it is a nation of small businesses.According to data from the Ministry of Industry, Trade, and Investment, the country has over 37.07 million micro, small and medium-scale enterprises scattered across many of the country’s productive sectors including agriculture, cottage industry, healthcare, and energy. Apart from accounting for more than 84% of the country’s total jobs, these enterprises are responsible for almost half of the nation’s GDP. But despite the fantastic statistics, poor access to financing occasioned by bureaucratic bottlenecks and red tapes has continued to trickle down and stymy the growth of many of these businesses. This problem is exacerbated by the lowly percentage of funds dedicated to MSMEs by banks, who are the dominant player in the finance industry. While the dynamism, innovativeness, and shrewdness of the entrepreneurs running these small businesses have helped maintain their relevance to the nation’s economy, poor access to financing continues to hinder the sector’s development. This constitutes a significant challenge for a country aiming to diversify its economy from its current oil-dependency state.
Understanding the immensity of the problem on the nation’s economy and the need for an innovative approach to solving the problem, the KiaKia team launched the KiaKia P2P to help address the gap between the financial needs of the MSMEs and the access to available financing. The P2P model works by allowing a qualified lender to earn and share income with the lender (KiaKia) who, in turn, aggregate the loan with those of other lenders and lend it out to borrowers that are pre-qualified, originated and underwritten by the lender (KiaKia).
Why KiaKia P2P?
Though a new initiative in the Nigerian Fintech Industry, the P2P has been around in the global Fintech arena for some time. It has been tested and proven to work even in countries with developed financial institutions and liberalized financial policies by the likes of Ratesetter and Zopa. The KiaKia P2P allows the active participation of interested individuals in solving the funding problem of MSMEs. Individuals above 18 years of age with legitimate income sources are allowed to fund secured, and unsecured loans originated and booked by KiaKia platform. In return, these lenders earn between 12% and 40% in interest payment at the maturation of the loan.
How KiaKia P2P works?
The KiaKia P2P is not a savings nor money deposit solution. It is merely an active lending platform that allows you to earn and share your income with KiaKia. So, you bring your capital, we aggregate it with those of others, and borrow it out to borrowers pre-qualified, originated and underwritten by the KiaKia platform. You can lend out from as little as fifty thousand naira and as much as two million five hundred thousand naira up to five times.
At the maturation of the loan, your capital is returned to your account immediately. You also paid an interest calculated based on the investment structure you chose (monthly, quarterly, annual, or biannual basis).
We also offer you the Halal investment option, which follows the Islamic principle of non-interest funding. Under this arrangement, KiaKia gives funds to businesses for profit sharing rather than interest payment. In short, you lend your funds to businesses with the sole aim of sharing profit rather than the regular interest payment.
How to join the KiaKia P2P?
Our P2P is opened to all categories of lenders. However, there are basic requirements to fulfill before becoming a lender on our platform. To qualify, you must be:
- Be above 18 years
- Be resident in or outside Nigeria.
- Have a naira debit card
- Have a Nigerian bank account
- Earn above #50,000
If you meet all these requirements, follow the steps below to get started:
- Download the KiaKia P2P app on the Google Playstore via this link – https://play.google.com/store/apps/details?id=com.kiakia.p2p.
- Click on the “Register” tab to create an account.
- Enter your details on the next page
- Verify your email address (Check your spam folder if you can’t find the verification email in your inbox)
- You will see a list of Active investments on your home page.
- Swipe to the next to fund a loan by clicking on the “Tap to invest” button.
- Select the amount you will like to invest
- Choose the Investment Type (Standard or Halal)
- Choose the Sectors/industry you want to fund
- Choose your Investment Tenure (6 months, 12 months or 18 months)
- Choose your Payout Plan (Quarterly or Bi-annual)
- Choose your Payment Method (Bank Transfer or Paystack)
- Tick the “I accept the terms and conditions” box
- Proceed to payment
- If you choose the Paystack payment method, you will be taken to a secured payment page to enter your card or bank details.
- If you choose the Bank Transfer method, you will be given a page containing details of where to pay your money. Once you pay, please send an email to us at @firstname.lastname@example.org with proof of payment.
- You will receive an email from KiaKia P2P confirming the creation of a new investment profile.
- Return to the app homepage and check your Active Investments. It should be updated within 24 hours.
All these can be completed within a few minutes.
Our Pact with our Esteemed Customers
With a history of performance, KiaKia isn’t just the pacesetter of the P2P model in the Nigerian Fintech space, but also the brand to beat. In the last four years, we have helped as many as 170,000 MSMEs, including schools, farms, construction firms, and many more fund several projects from as little as five hundred thousand naira to as high as hundred million naira. Some of the success stories include helping bakers go from three employees to as much as 15 employees; farms go from fewer operating tools to huge working tools, financing installation of renewable energy on a large farm, etc.
While a significant issue with P2P is the possibility of lenders losing their money due to refusal of borrowers to pay back, we take pride in our shrewdness and accountability, which has ensured none of the lenders on our P2P platform has lost a dime since we started. To further our objective of lending responsibly, we maintain a non-performing loan portfolio of less than 3%. We also peg our loan portfolio at 85% MSME, ensuring that the majority of our loan goes to empower the real players in enabling them to create prosperity and contribute their quota to the economy, through taxes, through employment. We take cognizance of the fact that we are taking charge of your money and ensure we give your funds to only those that are in dire need of it. This is why we create a safety fund. The safety fund is funded using a part of the interest on paid loans – the other parts are shared between the lender and KiaKia. The Safety Fund serves as a buffer to protect lenders’ investment. It does this by automatically reimbursing lenders in the rare case of a borrower’s payment being missed.