MyFi

MyFi (Grenada) Limited: An Evolving Pillar of Local Finance

In the dynamic financial landscape of Grenada, MyFi (Grenada) Limited has carved out a notable niche, particularly in serving micro, small, and medium enterprises (MSMEs) and consumer clients. Established in June 2018 by a consortium of local investors led by Dr. Patrick Antoine, MyFi initially built its reputation on a robust field-based lending model, deeply engaging with clients across the island. This hands-on approach proved crucial during challenging times such as the COVID-19 pandemic and Hurricane Beryl, where MyFi's field officers provided vital support and maintained strong customer relationships.

A significant development for MyFi occurred in September 2024 when its assets and lending operations were acquired by Term Finance (Grenada). This acquisition positions MyFi to integrate into a more digitally focused platform, leveraging Term Finance's regional footprint and technological capabilities. Term Finance itself is predominantly owned by PointWest Capital, with a twenty percent stake held by First Citizens Group, signaling a strategic shift towards modern, web-based financial services for MyFi's clientele.

MyFi's registered office is located at the First Floor, Gails Shoe Shop Building, Corner Halifax and Cross Streets, St. Georges. It operates under a Class A-D license from the Grenada Authority for the Regulation of Financial Institutions (GARFIN) under the Money Services Business Act, ensuring its operations adhere to established regulatory frameworks. The company's business model traditionally focused on providing both asset-backed and unsecured loans, with a strong emphasis on rapid approval and disbursement, a cornerstone of its appeal to a diverse range of borrowers in Grenada.

MyFi's Lending Portfolio: Products, Rates, and Terms

MyFi offers a suite of financial products designed to cater to the distinct needs of its target market in Grenada. Understanding these offerings, along with their associated costs and conditions, is paramount for any potential borrower.

Diverse Loan Offerings

• Microbusiness Loans: Tailored for very small businesses and sole proprietors, facilitating growth and operational needs.
• Small & Medium Enterprise (SME) Loans: Aimed at established small and medium-sized businesses requiring more substantial capital for expansion, inventory, or equipment.
• Consumer Loans: Unsecured personal loans available to individuals for various personal financial requirements.

Loan amounts with MyFi are designed to be accessible, starting from a minimum of EC$500, which is approximately USD 185. For SMEs, the maximum loan amount can extend up to an estimated EC$250,000, roughly USD 92,600, reflecting MyFi's commitment to supporting larger business ventures within the MSME sector.

Understanding Interest Rates, Fees, and Repayment

MyFi's interest rates generally range from 12% to 28% Annual Percentage Rate (APR). These rates are not uniform; they vary significantly based on the borrower's risk profile and whether the loan is secured by collateral. Typically, unsecured loans carry higher APRs due to the increased risk for the lender. It is crucial for borrowers to inquire about the exact APR applicable to their specific loan, as this rate encompasses the total cost of borrowing over a year.

Loan terms also vary, offering flexibility:

• Consumer Loans: Repayment periods typically range from three months to thirty-six months.
• Asset-Backed SME Loans: These can extend up to sixty months, providing longer repayment horizons for business investments.

All loans are repaid through convenient monthly installments.

Regarding fees, MyFi maintains a transparent structure:

• Origination/Processing Fee: A fee of one percent of the loan amount is applied, with a minimum charge of EC$25.
• Late Payment Fee: For overdue installments, a flat EC$25 fee is charged, in addition to two percent of the overdue installment amount.
• Early Repayment Penalty: MyFi encourages responsible financial management by waiving early repayment penalties for all loans, allowing borrowers to save on interest by settling their debts sooner.

For loans exceeding EC$5,000, MyFi typically requires collateral, which can include equipment, inventory, receivables, or vehicle liens, covering approximately eighty percent of the loan's value. Loans up to EC$5,000 may be unsecured, simplifying access for smaller needs.

The MyFi Application Journey: From Inquiry to Disbursement

Accessing funds through MyFi involves a structured process, ensuring due diligence while aiming for efficient service. This section outlines what prospective borrowers can expect.

Requirements and Process

Traditionally, MyFi's application process has been primarily in-person and field-based, fostering direct interaction with clients. Applicants could visit the head office in St. Georges or engage with field officers who conduct on-site visits to gather necessary documentation and explain loan terms. This approach has been key to MyFi's ability to build strong relationships and assess unique client situations.

Key documentation required for Know Your Customer (KYC) and onboarding includes:

• Government-issued identification (such as a passport or national identification card).
• Proof of income (e.g., pay slips, employment letters, business financial statements).
• Proof of address (e.g., utility bill).

For MSME clients, additional documents like bank statements and trade references are typically required to assess business viability. MyFi employs a proprietary credit scoring system that combines an assessment of collateral value, cash-flow projections, trade references, and crucial field officer evaluations. While credit bureau checks are conducted where data is available, MyFi places a strong emphasis on relationship-based lending and on-site due diligence.

Upon approval, loan disbursements can be made via bank transfer to the client's account, through mobile money for smaller consumer loans, or as cash at the branch under dual custody, offering flexibility to borrowers.

Technology and User Experience

Prior to its acquisition by Term Finance, MyFi did not have a proprietary mobile application. Its digital presence was minimal, with applications predominantly paper-based. This model, while allowing for personalized service through field officers, also meant occasional delays associated with manual processes.

However, with the acquisition, a significant shift is underway. MyFi's existing digital capabilities are slated to migrate to Term Finance's fully web-based platform. This integration is expected to enhance the user experience significantly, potentially streamlining the application process, offering more convenient access to services, and improving overall efficiency for MyFi's growing customer base. This move marks a progression towards a more modern, accessible lending experience for Grenadian borrowers, aligning with global digital finance trends.

Regulatory Compliance and Market Standing

MyFi's operations are firmly rooted within Grenada's financial regulatory framework, ensuring accountability and consumer protection. Its position in the market reflects its strategic focus and operational strengths.

Licensing and Oversight

MyFi (Grenada) Limited is officially licensed under the Money Services Business Act (Amendment) Act 2014 by GARFIN, holding a Class A-D license. This permits it to engage in activities such as money transmission, issuing payment instruments, cheque cashing, and currency exchange. As a regulated entity, MyFi falls under the direct supervision of GARFIN and is also subject to the Eastern Caribbean Central Bank (ECCB)'s Anti-Money Laundering and Counter-Terrorist Financing (AML/CFT) guidelines. This regulatory oversight ensures that MyFi operates with integrity and adheres to international best practices for financial transparency and security. Notably, prior to its acquisition, there were no publicly disclosed fines or enforcement actions against MyFi, indicating a strong record of compliance.

In terms of consumer protection, MyFi ensures transparent disclosure of all applicable APRs, fees, and repayment schedules in its agreements. It also maintains a clear complaints escalation process, directing grievances to a dedicated officer and allowing for appeals to GARFIN, providing a formal channel for client redress.

MyFi in the Grenadian Lending Landscape

MyFi has established itself as the largest non-bank lender to MSMEs in Grenada, demonstrating a significant impact on local business development. Since its inception, the company has disbursed an impressive EC$15 million, capturing an estimated eighteen percent of the microfinance market. As of mid-2024, MyFi boasted over 3,500 active clients, with seventy-five percent being MSMEs and twenty-five percent consumer borrowers. Its customer demographic heavily skews towards self-employed traders and small manufacturers, making up fifty-five percent of its base, with the remainder being salaried employees and informal sector entrepreneurs.

MyFi operates its head office in St. Georges and conducts field operations across all six parishes, with a particular focus on Grand Anse, St. Georges, and Carriacou, demonstrating its commitment to island-wide accessibility.

MyFi's key competitors in Grenada include other non-bank lenders like FastCash (also a Term Finance consumer arm), Axcel Finance (which has also undergone acquisition), Courts Ready Cash, and local credit unions. MyFi differentiates itself through its field-based underwriting model, its ability to make rapid decisions, particularly during crises, and its high collateral coverage, which provides security for its lending activities. While its relatively high APRs compared to traditional banks and paper-based processes have been noted as common complaints, positive anecdotal feedback often highlights the effectiveness of its in-person service and the crucial support provided by its field officers, especially during periods of national hardship.

Numerous MSME clients have reported business growth directly financed by MyFi loans, particularly within the agriculture and retail sectors, underscoring the company's positive contribution to Grenada's economy.

Practical Advice for Potential MyFi Borrowers

For Grenadian individuals and businesses considering MyFi for their lending needs, a thoughtful approach can ensure a smooth and beneficial experience. Here is some practical advice from a financial expert's perspective:

1. Understand the Total Cost: Always scrutinize the Annual Percentage Rate (APR). While MyFi's rates may be higher than traditional banks, they reflect the risk profile and accessibility often associated with microfinance. Ensure you understand all fees, including the origination fee and any late payment charges.
2. Assess Affordability: Before committing, realistically evaluate your ability to meet monthly installments. Use MyFi's waiver of early repayment penalties to your advantage if you anticipate being able to pay off your loan sooner, thus saving on overall interest.
3. Leverage Field Officer Support: MyFi's traditional strength lies in its field-based operations. Engage openly with their field officers; they can provide personalized guidance, help clarify terms, and assist with documentation. This human element is a significant differentiator.
4. Prepare Your Documentation: To expedite the application process, have all required documents ready. This includes government identification, proof of income, proof of address, and for MSMEs, bank statements and trade references. Thorough preparation can prevent delays.
5. Clarify Collateral Requirements: If your loan is above EC$5,000, understand precisely what assets are required as collateral and their valuation. Ensure you are comfortable with these terms.
6. Consider the Digital Future: With MyFi's integration into Term Finance's web-based platform, expect future enhancements in digital application and management. While current processes might still involve paper, be prepared for a more streamlined online experience down the line.
7. Compare Options: While MyFi is a strong player, especially for MSMEs, it is wise to compare its offerings with other local lenders, including credit unions, FastCash, and Courts Ready Cash, to find the best fit for your specific needs and financial situation.
8. Review the Complaints Process: Familiarize yourself with MyFi's complaints escalation procedure. Knowing how to address concerns effectively provides an important layer of consumer protection.

MyFi (Grenada) Limited, with its recent acquisition by Term Finance, stands at an interesting juncture, blending its established, relationship-based lending heritage with a move towards more modern digital platforms. For Grenadian consumers and MSMEs seeking accessible and often rapid financing, MyFi continues to be a vital option, provided borrowers engage with full awareness of its terms and processes.