Fido loan App Comprehensive Guide App Installation Registration and Code Approval

Introduction to Fido

Fido aims to create a new culture of digital money, providing quick and accessible financial services, including personal and business loans, directly through a mobile application. Whether you’re an individual needing funds for personal reasons or a small business owner seeking capital to boost your operations, Fido offers digital credit solutions designed to be straightforward and convenient. This guide provides a comprehensive overview of installing and registering on the Fido app, understanding its features, applying for loans, and navigating the approval process.

Currently, Fido is available for Android users in Ghana. An iOS app is noted as being in development. The primary identification required is the Ghana Card, which is the only recognized and acceptable form of ID.

Getting Started: App Installation & Registration

Follow these steps to install the Fido app and register your account:

1. Download the App: Visit the Google Play Store, search for ‘Fido’, and install the official Fido App.
2. Begin Registration: Open the app. You will be welcomed and prompted to register. Click ‘Register’.
3. Mobile Number: Enter your active mobile phone number.
4. OTP Verification: You will receive a one-time code (OTP) via SMS to verify your mobile number. Enter this code in the app. This is a crucial step often referred to when discussing ‘code approval’ during setup.
5. Set PIN Code: Create a secure 4-digit PIN code. Choose a code you can remember but is difficult for others to guess. Do not share your PIN with anyone.
6. Security Question: Set up a security question and answer. This adds an extra layer of protection to prevent unauthorized access to your account. Ensure it’s an answer you can reliably remember.

Once these steps are completed, your basic registration is done. You will then need to proceed with identity verification and potentially apply for credit to fully utilize the app’s features.

Navigating the Fido App Interface

The Fido app is designed for ease of use. Here’s a breakdown of the main sections:

Home Page

This is your central dashboard after logging in. It provides a general overview and access to key actions:

• Apply for personal credit (quick loans, e.g., up to ₵350).
• Apply for FidoBiz (business loans, starting from ₵1,500).
• Apply for mobile device financing.
• Calculate and check your current Fido Score.
• View active credit applications or pending actions.
• Top up Airtime or Data, and Pay Bills (also available via *998# short code).
• Invite Friends (Referral program).
• See all available Fido products and services.

Credit Page

This section offers a comprehensive summary of your credit line(s) with Fido:

• View history of all previous personal and business credit drawdowns.
• Check details of currently active credit, including the remaining balance.
• Obtain detailed information about your current credit schedule, repayment dates, and associated terms.
• Request a drawdown from your available personal or business credit line (subject to eligibility).

Profile Page

Manage your account settings and access important information here. It’s organized into “My Account” and “About Fido”:

• My Account:
  • Verify your identity (required for full access).
  • View your Fido ID (unique identifier assigned after verification).
  • Check your Fido Score (after verification and survey completion).
  • Manage Payment Methods (after identity verification).
  • Manage Login & Security settings (like your PIN).
  • Invite a friend (after successful account creation).
• About Fido:
  • Visit the Help Center.
  • Rate the Fido App.
  • Read the Privacy Policy.
  • Read the Terms and Conditions.
  • View the App version you are currently using.

Understanding Fido Loans and Fido Score

Personal Loans

Fido offers quick personal loans designed for individuals needing access to credit rapidly. Once approved, funds are typically disbursed directly to your registered Mobile Money wallet within minutes.

Fido Score

The Fido Score is a crucial element within the Fido ecosystem. It’s a number ranging from 0 to 800 that reflects your creditworthiness based on Fido’s assessment.

• Purpose: Determines eligibility for Fido products/services and influences the loan terms (amount, interest rates) you might receive. A higher score generally leads to better deals.
• Calculation: It’s calculated using information you provide and data accessed via app permissions (with your consent).
• Initial Score: An initial Fido Score is typically assigned after you apply for your first credit.
• Building Financial Identity: Using Fido responsibly helps build your score, potentially unlocking improved offerings over time.

Small Business Loans (FidoBiz)

Fido also provides FidoBiz loans specifically for Small and Medium-sized Enterprises (SMEs). These are designed to help entrepreneurs start, manage, or grow their businesses.

• Purpose: Fund new projects, manage cash flow, buy equipment, expand staff, purchase stock, or overcome financial challenges.
• Importance: SMEs gain access to capital that might otherwise be unavailable, helping them seize opportunities, create jobs, and boost local economies.
• Sources: Fido acts as an online lender, offering an alternative to traditional banks or credit unions.

Types of Small Business Loans

While Fido’s specific offerings may vary, common types of SME loans include:

• Term Loans: A fixed amount borrowed with a specified repayment schedule and interest rate. Ideal for large projects or significant asset purchases.
• Business Lines of Credit: A revolving credit limit you can draw from as needed. Useful for short-term cash flow gaps or unexpected costs. You typically pay interest only on the amount used.
• Equipment Financing: Loans specifically for purchasing business equipment (machinery, technology). The equipment often serves as collateral.

Assessing Your Business Loan Needs

Before applying for a FidoBiz loan:

1. Determine the Amount: Calculate precisely how much funding you need. Avoid borrowing too little (shortfall) or too much (excess debt). A detailed budget can help.
2. Identify the Purpose: Clearly define what the loan will be used for (expansion, operational costs, specific project). This influences the loan type and term needed.
3. Consider ROI: Evaluate if the loan will help generate more revenue or profit, making the borrowing worthwhile. Only take a loan if it supports business growth; don’t rely on it to save a failing business.

The Loan Application Process

Applying for credit through the Fido app involves several steps:

1. Initiate Application: From the Home Page, select ‘Apply now’ for a personal loan or ‘Start now’/’Learn more’ under the FidoBiz section.
2. Permissions Consent: You’ll encounter screens explaining the data Fido needs to collect (e.g., Contacts, Location, Storage, Device Info, SMS, Calendar) and why (credit decisions, fraud prevention, risk assessment, Fido Score calculation). You must grant these permissions by selecting ‘Allow’ when prompted by Android. Fido states this information is used solely for these purposes and not for marketing or sharing with unrelated third parties without consent.
3. Provide Required Information:
   • Personal Details: Selfie, Ghana Card details, and Address are typically required for initial verification and application.
   • Business Details (for FidoBiz): This may include company profile (legal name, address, sector, time in business), financial documentation (income statements, cash flow, balance sheets), personal credit details of owners, potential collateral information, and legal documents (licenses, incorporation papers).
4. Credit Application Survey: You’ll likely need to complete a short survey about yourself (and potentially your business). Answer truthfully. Some fields like email address might be optional but are recommended for better customer support. Employment industry selection should reflect your current status.
5. Add a Reference: You may be asked to provide contact details for one reference (not yourself). Fido states they will only contact this person to assist in reaching you if they cannot make contact directly. Importantly, this reference is NOT a guarantor and is not liable for your debt.
6. Select Loan Amount (Drawing Credit): On the credit amount selection screen, choose your desired amount. You can either:
   • Type the amount using the on-screen keypad.
   • Select from pre-defined suggestion cards (e.g., ₵50, ₵100, ₵150, ₵200), which might offer different terms. Note your maximum credit limit will be displayed.
7. Review Credit Summary: Before proceeding, carefully review the basic summary of terms based on the amount you wish to draw. This screen shows:
   • Repayment Date: Expected date to pay off the credit balance.
   • Credit Amount: How much you are drawing.
   • Commitment Fee: An upfront charge deducted from the credit amount before disbursement.
   • Finance Charge: The total cost of the credit, including interest and all related fees.
   • Total Repayment: The full amount you will need to repay.
   Select ‘Next’ to accept this summary.
8. Processing and Pre-agreement: After submitting the request, there’s a short processing period (usually less than 2 minutes). If approved, you’ll be presented with a Credit Pre-agreement for final review. This includes:
   • Expected Disbursement Date (usually the same day).
   • Your unique 9-digit Fido ID.
   • Finance Charge (total cost).
   • Repayment Schedule (due dates and amounts).
   • Links to the full Credit Agreement and Terms of Service.
9. Accepting Terms (Final Approval): Read the pre-agreement carefully. If you agree to all terms, select the ‘I agree’ button (or similar confirmation). This signifies your acceptance of the loan offer.
10. Disbursement: Once approved and accepted, the loan amount (less the commitment fee) will be sent instantly to your registered Mobile Money account.

Evaluating Loan Eligibility (Especially for Businesses)

Lenders like Fido consider multiple factors when evaluating loan applications, particularly for businesses:

• Credit Scores (Personal and Business): Past credit history is vital. Fido uses its proprietary Fido Score (0-800). Higher scores indicate better reliability and can lead to better terms.
• Time In Business: Lenders often prefer businesses operational for a minimum period (e.g., 6 months to a year) as it demonstrates stability. However, options might exist for newer startups.
• Revenue and Profitability: Consistent revenue and demonstrated profitability enhance eligibility, showing the business can likely handle repayments.
• Cash Flow: Positive cash flow (earning enough to cover expenses and loan repayments) is crucial. Lenders look beyond just revenue.
• Debt-to-Income Ratio: Compares total debt to income. A lower ratio suggests better financial health and management.
• Industry and Collateral: Some industries are seen as riskier. Providing collateral (assets like property or equipment) can improve chances, though Fido’s specific requirements may vary.

Advantages and Potential Drawbacks of Fido (Business) Loans

Advantages

• Access to Capital: Provides essential funding for starting, operating, or expanding a business.
• Flexibility in Loan Terms: May offer more adaptable terms (e.g., repayment schedules) than traditional loans. Some options might lack prepayment penalties.
• Building Business Credit: Timely repayments help establish and improve a business’s credit profile, aiding future financing.
• Maintain Ownership: Unlike equity financing, loans allow entrepreneurs to retain full control and ownership of their company.

Potential Drawbacks

• Debt Accumulation: Overborrowing or inability to repay can lead to significant debt, potentially harming the business.
• Collateral Requirements: Some loans may require collateral; defaulting could mean losing critical assets. Review terms carefully.
• Interest Rates and Fees: Online and small business loans can sometimes have higher interest rates or additional fees (like commitment fees) compared to traditional bank loans. Compare offers and watch for hidden costs.
• Strict Eligibility Criteria: Meeting requirements for revenue, credit score, or business longevity can be challenging.
• Impact on Cash Flow: Regular loan repayments are a fixed commitment that can strain cash flow, potentially limiting other investments or opportunities. Evaluate your budget carefully.

Conclusion

The Fido app offers a convenient platform for accessing personal and business credit in Ghana. By understanding the registration process, app features, loan application steps, and the importance of factors like the Fido Score and responsible borrowing, users can effectively leverage Fido’s services. Always ensure you understand the terms and conditions before accepting any loan agreement.