How YESS Fund Works
FULL EXPLANATION
YESS Fund
Registration
Registration is the first step in becoming a member. Filling out the bio-data form is easy and seamless, as seen on the Registration Page.
Once you create your account and make payment of your registration fee (20.00GHS), you will receive your Member Contribution Pin (MCP) and an invite to the YESS Fund group on the Chango platform, where all activities (contributions, loan requests, etc.) of the YESS Fund happen.
Contribution Platform (Chango)
YESS Fund uses a Bank of Ghana-approved third-party membership contribution and loaning application that allows members to sign up, join the group, contribute and borrow from the group. The application enables contributors to monitor and control all transactions.
YESS Fund will send you an invite to the private group, where you will be asked to create an account and verify it with your phone and ID. After successfully joining the group, you have access to all you need to start your contributions.
You will be required to add a wallet from which your contributions and transactions will be made on the application.
MCP
MCP Stands for Member Contribution Pin. It is a unique identification number given to all Members. The MCP is used to process loans and other related benefits.
Weekly Contributions
YESS Fund members must contribute consistently for 21 weeks using the Chango app.
The minimum weekly contribution is 20 GHS, but you can contribute more for a higher loan amount.
Not following the weekly contribution pattern may result in loan denial.
Loans
Loans are available to only Qualified Members, i.e., Members who have successfully contributed for 21 weeks.
Loan Products
- Working capital loan
- Long Term-loan
- Equipment loan
- Emergency loan
- Maximum Loan amount: 100,000.00
- Minimum Loan Amount: 1,000.00
- Interest Rate: 12% Flat Rate per Annum
- Repayment Periods: 3 months/6 months/12 months /24 months/36 months
- Repayment Options: Daily/Weekly/Monthly
Eligibility
- Must be a GCYE member in good standing.
- Must have contributed to the YESS Fund consistently for at least 21 weeks.
- Must have a registered viable business.
- Business plan and cash flow projections.
- Quotation from suppliers (for equipment loans).
- Trading license/permits (where applicable).
- Loan Application.
Loan Application Process
- Submit a loan request and provide guarantors: Start by sending a loan request and listing the MCPs (Member Contribution Points) of qualified members who will guarantee your loan.
- Verification and eligibility check: The Admin or Credit Officer will review your request to ensure you meet the eligibility criteria and terms and conditions.
- Due diligence: If you’re eligible, a due diligence process will begin, which may include an assessment visit or requests for additional information. i.e 6 months business bank statement, business registration certificate (form A), Business Book of records. and financial projections.
- Credit Committee review: The Credit Officer will prepare a report and credit memo for the Credit Committee to review and approve.
- Loan approval and security: If approved, a guarantee request will be sent to the guarantors, using part of their contributions as security.
- Loan disbursement: Once you guarantors agrees to guarantee your loan and all documentation is provided, the loan will be disbursed into your business account.
Key Points:
- The number of MCPs required increases with the loan amount.
- Only qualified members can act as guarantors.
- Building your YESS Fund Network among family and friends is crucial.
YESS Fund Contributor Network (YCN)
The YCN is also a social community where you can build a Network of Members that matters.
Your loan application and approval rely on your YCN and their willingness to Second your loan. It is essential to continually build your YCN by signing up new Members and connecting to other Members.
You can add as many members as you want to your YCN by signing up new members.
Notifications
You will find all your messages and notifications on the app and via email. Remember to check it regularly. There is also a member chat option to engage each other.
Cash-out
Members can cash out their contributions once every year, with the specific timing based on their join date. To initiate another cash-out, they must wait until the anniversary of their previous withdrawal. It’s required that members keep a minimum balance in their account, set at 10% of their total contributions, calculated from the total amount contributed up until the latest cash-out request. However, for those who have not borrowed from the fund or who commit not to borrow, a lower minimum balance of 5% is allowed. If members wish to withdraw their contributions before the scheduled date, they must inform the administrator in writing three months ahead.
Account Termination
Members have the option to close their YESS Fund account by providing a written notice three months in advance. Following the completion of this notice period, the full amount of their contributions will be transferred into their wallet.