Apparently, of all the things that have been hidden from Third World countries, financial education remains one of the most closely guarded secrets. We have often heard some say that if we wanted to hide something from an African, we should put it in a book. This time is completely over and today it is time to understand that all financial institutions have, with a few differences, the same pre-qualification and selection criteria. So obtaining a loan from them depends on a good understanding of their selection criteria, good financial hygiene and light exercises in factual payments and withdrawals (no cheating).

1. In Africa, there are generally four criteria to which a fifth has been added and which must first be understood. These are:

• Identity criteria

Photos, dates of birth, validities and numbers of identity documents

Emails and phone numbers

• Residential criteria

Status (tenant, owner or hosted), duration at this residence (Your residential stability says a lot about your habits and the risk potentially incurred), the amount of your rent, payment to the bank, or contribution to your accommodation (This amount in says a lot about your financial capacity and your good habits).

• Professional criteria

Employment or activity status (cdi, fixed-term contract, liberal profession or self-employed worker), duration in this profession (Your professional stability says a lot about your habits and the risk potentially incurred), the amount of your monthly income (This amount says a lot on your financial capacity and the risk potentially incurred).

• Debt criteria

This criteria is decisive because it allows you to know if you have obligations towards a potential ex-spouse, towards a child out of wedlock, towards a financial institution or other (Your seriousness towards your commitments says a lot about your behavior towards future responsibilities), the amount of your commitments (This amount says a lot about your financial capacity, your transferable portion and the risk potentially incurred).

• Criteria of stable and visible financial flows

This criteria is factual because beyond proof of income and other documents, statements and promises, it shows the quantity of deposits and withdrawals made in the account(s) during a given period T. These movements summarize the activities on the ground.

2. Next, one must understand what financial reputation represents

Financial reputation looks very similar to what is called e-reputation (online reputation, except that it only contains real and factual information, without fake news or targeted destruction attempts). Financial reputation is a discreet rating given to you for your financial behavior, both in meeting your bill payments and meeting your deadlines at financial institution levels.

Financial reputation is almost an algorithmic science that must be understood, mastered, applied and benefited from. If you see that some have an easier time obtaining loans than others, it is because of their financial reputation. Follow these following instructions to the letter and you will see the difference:

– First go to a bank or microfinance to open one or more accounts there

– Domicile your wages or your income there, especially for non-salaried workers and the liberal professions.

– Take the opportunity to ask them to block ten percent of your declared income every month and in advance in another separate account.

– Order a Visa or MasterCard debit card of at least 50,000 Nairas.

– Use it instead of your cash, for all your transactions up to a maximum of 65%, leaving 35% permanently available in the card.

– Do not make any transaction that has not gone directly through your accounts or debit cards.

– Respect your withdrawals and deposits, making sure not to exceed 35%.

– This is neither to explain nor to discuss but to apply because it is an algorithmic law which means that at this height of use, your credit or financial reputation rises much faster.

– Avoid bill delays of all kinds, including in recharging your debit card.

– If you are disciplined, you can take a second debit card, or increase the limit of your current card and continue to operate in the same way.

– Return to the bank or financial institution twelve months later to ask for a very small loan between 300,000 Nairas and 1,000,000 Nairas.

– Repay the loan over the said duration, without NEVER anticipating.

– Return to the bank or financial institution to request another higher loan and proceed in the same way as usual.

– Stick to small loans and scale up bit by bit while remaining overly conservative and making sure they never exceed fifteen times your monthly income.

Example: If you earn 100,000 Nairas per month, it would not be recommended to borrow more than 1,500,000 Nairas.

After having followed all these instructions to the letter, you will never have to solicit banks and financial institutions again, because they are the ones who will flood you with all kinds off offers. The choice will be yours in less than two years of planning.