Term Finance (Grenada) Limited

Introduction: Digital Lending in Grenada

The financial landscape in Grenada continues to evolve, with digital lenders playing an increasingly vital role in providing accessible credit to both individuals and businesses. Among these, Term Finance (Grenada) Limited has emerged as a key player, distinguishing itself through a 100% web-based operational model. Established in September 2024 through the acquisition of My Finance Grenada Ltd. (MyFI), this company swiftly consolidated its position by also incorporating the FastCash franchise, creating a robust digital lending platform for the Spice Isle.

Term Finance (Grenada) Limited is properly registered under the Companies Act with the Grenada Financial Regulatory Commission (GFRC) and holds a non-bank financial institution license from the Grenada Authority for the Regulation of Financial Institutions (GARFIN), effective since October 17, 2024. This regulatory oversight ensures that its operations adhere to established financial standards and consumer protection guidelines within Grenada.

The ultimate ownership of Term Finance (Grenada) Limited lies primarily with PointWest Capital (80%) and the First Citizens Group (20%), both based in Trinidad and Tobago, bringing regional financial expertise and backing. The company's business model is designed to cater to a broad target market, including salaried employees seeking consumer credit, micro, small, and medium-sized enterprises (MSMEs) in need of business financing, and online shoppers looking for convenient Buy Now, Pay Later (BNPL) options. This strategy aims to serve those who prefer or require short-term and installment loans without the traditional hassle of in-branch visits, aligning with the growing digital adoption across the Caribbean.

Key leadership within the organization includes Dr. Christian Stone as the Chief Executive Officer for Regional SME operations, with Oliver Sabga providing regional group governance. Dr. Patrick Antoine, representing the MyFI founders, continues to offer advisory support post-acquisition, ensuring a smooth transition and leveraging local market insights.

Loan Products and Financial Terms Offered

Term Finance (Grenada) Limited provides a focused suite of loan products tailored to meet distinct borrower needs, all accessible through its digital platform:

• Personal Loans (FastCash): These are typically unsecured, short-term cash advances designed for individual consumer needs. They offer quick access to funds for emergencies or personal expenses.
• SME Loans (MyFI): Geared towards micro, small, and medium-sized enterprises, these loans are predominantly asset-backed term loans. Businesses can leverage existing assets such as equipment, inventory, or receivables to secure financing for growth or operational needs.
• eCommerce Financing: This innovative product offers point-of-sale Buy Now, Pay Later options, allowing online shoppers to purchase goods and pay over a period, integrating seamlessly with digital retail experiences.

Loan Amounts and Terms

The company offers loan amounts ranging from a minimum of EC$500 (approximately USD 185) up to a maximum of EC$50,000 (approximately USD 18,500). It is important for prospective borrowers to note that exact local and USD limits may vary based on the specific loan product and underwriting criteria.

Repayment terms are structured to accommodate different loan types:

• Personal Loans typically have terms ranging from 3 to 12 months.
• SME Loans offer longer repayment periods, from 12 to 36 months, reflecting the nature of business investments.
• eCommerce financing is usually repaid in 1 to 6 monthly installments, designed for shorter-term consumer purchases.

Interest Rates and Fees Structure

As a financial expert, it is crucial to highlight the costs associated with these loans. While specific Grenada rates are sometimes unverified and can be indicative based on regional Term Finance products, the general ranges are:

• Personal Loans: Annual Percentage Rates (APR) typically range from 18% to 36%.
• SME Loans: APRs for business financing are generally lower, ranging from 12% to 24%.

Borrowers should always confirm the exact APR applicable to their specific loan offer. Beyond interest, the company also applies certain fees:

• Origination/Processing Fee: This fee ranges from 2% to 5% of the disbursed loan amount.
• Late Payment Fee: A charge of EC$25 flat or 5% of the installment amount, whichever is higher, is applied for overdue payments.

A positive aspect for borrowers is the stated policy of no prepayment penalty, allowing individuals and businesses to pay off their loans early without incurring additional charges, which can be a significant cost-saving benefit.

Collateral Requirements

Collateral requirements vary significantly by loan type:

• For Personal Loans, no collateral is required, making them accessible unsecured options.
• For SME Loans, collateral is often required, typically up to 80% of asset value. This can include equipment, inventory, or accounts receivables, providing security for the lender and potentially allowing for higher loan amounts.

Navigating the Digital Platform and Application Process

Term Finance (Grenada) Limited's commitment to a fully digital model defines its operational approach, from application to disbursement. The company operates exclusively through a mobile-optimized web portal, meaning there is currently no dedicated mobile application for download. This web-only interface is designed to be fully responsive across various devices, including iOS and Android smartphones, ensuring accessibility without app store downloads.

The application process is entirely online, streamlined for user convenience. Support is also available through social media channels and WhatsApp, offering alternative communication avenues for inquiries. To apply, prospective borrowers are guided through a digital Know Your Customer (KYC) and onboarding process, which includes:

• Digital ID verification: This typically involves uploading a photo identification and performing a selfie match to confirm identity.
• Proof of income: Applicants must submit bank statements and/or payslips to verify their financial capacity.
• Automated sanctions screening: To ensure compliance with regulatory standards.

The company employs a proprietary credit scoring and underwriting system. This sophisticated system combines various data points, including bureau data (linked to the Eastern Caribbean Currency Union, ECCU), transaction behavior extracted from bank statements, and alternative data such as eCommerce history, to assess creditworthiness efficiently. This allows for real-time decision-making, often leading to faster loan approvals compared to traditional methods.

Once a loan is approved, disbursement methods are varied to suit borrower preferences across Grenada, Carriacou, and Petite Martinique:

• Bank transfer: Funds can be directly transferred to EC Dollar bank accounts.
• Mobile money: Options such as Flow and Digicel Money provide convenient digital disbursement.
• Cash pickup: For those preferring physical cash, funds can be collected at partner retail outlets across the island.

The digital platform also includes useful features such as a loan simulation tool to estimate repayments, a payment calendar for managing due dates, and notifications to keep borrowers informed. While current customer reviews on social media show mixed sentiment, with praise for the speed of service, there have been minor complaints regarding user interface glitches. It is important to remember that as of late 2024, the platform is web-based, with plans to develop a dedicated mobile app in Q4 2025, which may further enhance the user experience.

Regulatory Framework, Market Standing, and Borrower Considerations

As a regulated financial entity in Grenada, Term Finance (Grenada) Limited operates under a robust framework designed to protect consumers and ensure financial stability. It is licensed by GARFIN under the GARFIN Act 2008 and falls under the oversight of the Grenada Financial Regulatory Commission (GFRC) for non-bank financial institutions. To date, there have been no public penalties or enforcement actions against the company, with GARFIN notices instead highlighting approvals for acquisitions and consolidation activities.

Consumer protection is a key aspect of its operations. The company is committed to transparent fee disclosures, with clear information available online. It also adheres strictly to Anti-Money Laundering (AML) and Counter-Financing of Terrorism (CFT) guidelines as mandated by the Proceeds of Crime Act. In the event of unresolved issues, customers have the recourse of escalating complaints to the GARFIN ombudsman, providing an important layer of consumer safeguard.

Market Position and Competitive Edge

Term Finance (Grenada) Limited holds a strong market position, identified as one of the top three non-bank lenders in Grenada, alongside established competitors like Axcel Finance and the Grenada Development Bank (GDBD). Its primary differentiator lies in its 100% fully digital model, which allows for faster approvals, often within minutes compared to days for competitors who may still rely on semi-branch networks. The integration of eCommerce financing also provides a unique competitive edge in a growing digital economy.

With an estimated 15,000 borrowers since its franchise launch (combining MyFI legacy and FastCash), Term Finance (Grenada) Limited serves a diverse customer base, with estimates suggesting 60% are aged 25-45 and 55% are female. Its nationwide digital reach extends to all parishes, including St. Georges, Grenville, and Carriacou, without the need for physical branches. The company has shown a clear growth trajectory, consolidating the FastCash and Axcel portfolios in February 2025 and exploring future expansions into micro-insurance and payroll advances, further solidifying its presence.

Success stories, such as a women's bakery expanding with MyFI financing during Hurricane Beryl in 2024 and an e-commerce merchant scaling through the Buy Now, Pay Later platform, highlight the tangible impact of its services on local businesses and individuals.

Practical Advice for Potential Borrowers

For any Grenadian considering a loan from Term Finance (Grenada) Limited, a financial expert would offer the following advice:

• Understand the Terms Fully: Always read the loan agreement in its entirety. Pay close attention to the interest rate (APR), processing fees, late payment charges, and repayment schedule. While no prepayment penalty is a benefit, ensure you understand all other costs.
• Assess Your Repayment Capacity: Before committing, honestly evaluate your ability to make timely repayments. Use the platform's loan simulation tool to project installments and ensure they fit comfortably within your budget. Defaulting can impact your credit score.
• Verify Information: Note that some rates and figures mentioned, particularly for Grenada-specific interest rates, are indicated as "indicative" or "unverified." Always confirm the precise rates and fees applicable to your individual loan offer directly with Term Finance.
• Leverage Digital Convenience Responsibly: The 100% online process offers speed and convenience. However, ensure you have a secure internet connection and are comfortable with digital identification and document submission. Keep your login credentials safe.
• Consider Collateral for SME Loans: If applying for an SME loan, understand how the asset-backed structure works and what percentage of your asset value will be covered. Ensure you are comfortable with the implications of using business assets as security.
• Utilize Support Channels: If you encounter any issues or have questions, make use of their social media and WhatsApp support, or their internal customer service. Remember that GARFIN provides an ombudsman service for unresolved complaints, offering an extra layer of protection.
• Compare Your Options: While Term Finance offers a strong digital advantage, it is always prudent to compare their offerings with other lenders in Grenada, such as Axcel Finance and GDBD, to ensure you are getting the most suitable terms for your needs.

Term Finance (Grenada) Limited represents a modern approach to lending in Grenada, offering swift, digitally-driven financial solutions. By understanding its products, terms, and operational model, and by following sound financial practices, borrowers can effectively leverage its services to meet their personal or business funding needs.