The cheque is received from a fund created by Obotan. It's therefore a scheme out of which a credit line is created to be used for loans or credit purchases. In other words, the fund is a contribution (Susu) pot from which all beneficiaries contribute via trade associations . Therefore, in order to qualify, you must be a contributor to this fund via your association, or you can use your car, property, or other asset also as a collateral to gain equity in order to be part of the fund and out of which you can receive a guaranteed cheque.
A line of credit is a guaranteed amount on your postdated cheque, provided by Obotan to you as an issuer, borrower or buyer and from which you can use to obtain a loan or buy anything you need to meet a demand. It's like a credit card.
A property equity Line of Credit (PELOC), Goods at the port line of credit(GAPLOC), car line of credit(,other asset line of credit (OALOC) is a line of credit secured by your landed house or asset or investment .This means your PELOC, GAPLOC, CLOC, OALOC acts as collateral or security for your line of credit in case you are unable to pay back. And because your line of credit is secured, you get a lower interest rate from your lenders.
You can use a PELOC, GAPLOC, CLOC, OALOC for a variety of things: loans or credit purchases. It works much like a credit card.
Same thing with PELOC, GAPLOC, CLOC, OALOC applies to any items that meet the Obotan threshold to be used as a collateral or security.
You only pay interest on the total amount of your credit line used from your Obotan guarantee cheque. Let's say you obtain GHC 100,000 Obotan guarantee cheque, but you use GHC 30,000 within a period. You pay interest only on the GHC 30,000.
You can use your property purchased from the Obotan platform Obotan: Shop via its vendors or you can use other assets that meet Obotan criteria or threshold.
You can use a landed property, goods at the port, receivable invoices, tangible mineral assets, car and any other item that can agreed upon with Obotan.
Yes, just log on to Obotan: Shop and buy what you can afford. And you can use it immediately also as a security for a loan or do a credit purchase.
No! Obotan is an intermediary that uses its platform www.obotanplc.com as an enabler or facilitator for borrowers and lenders, sellers and buyers. Obotan just provide the guarantee to the investor or seller. In Twi better known as agyenamoo.
It's 40% - 50% total value of your asset is used for as a collateral for the line of credit to get a loan or for credit purchases.
A valuer is used and based on the report, a credit value limit is established based on the asset value.
Repossession will be our last option. We really don’t want to repossess any asset. As long as you keep your account in good standing, your asset is not at risk of repossession. To keep your account in good standing, you will need to make your obligated postdated cheque payment each month.
Our payments are always on a standing order to your postdated cheques. To help keep your account in good standing:
- We have payment reminders that alert you to upcoming due dates.
- We allow you to pay early.
- The postdated cheques you give to Obotan is same as autopay that you can set up to ensure you pay on time.
- And we accept a variety of payment methods like debit cards, ACH, Cash, Momo Pay and other channels as will be added later or permitted.
If things do come up and you are unable to pay, please reach out to us. We will do our best to work with you.