Lupiya

Lupiya's Foundation and Vision in Zambia's Financial Landscape

Lupiya Holdings Limited, established in 2016, stands as a significant player in Zambia's burgeoning digital finance sector. Founded by Evelyn Chilomo Kaingu, the Chief Executive Officer, and Muchu Kaingu, the Chief Technology Officer, the company began as a micro-lending pilot before evolving into a comprehensive credit-led neobank by 2020. This transformation positioned Lupiya to cater effectively to the financial needs of diverse segments, including individuals, civil servants, small and medium enterprises (SMEs), farmers, and defense personnel, particularly those residing in both urban and rural areas who are unbanked or underbanked.

As a non-bank financial institution, Lupiya is duly incorporated in Zambia and holds a crucial license from the Bank of Zambia under the Banking and Financial Services Act. This regulatory endorsement underscores its legitimacy and commitment to operating within the established financial framework. The company distinguishes its business model as a lending-only neobank, meaning it funds its loan book primarily through equity investments and peer-to-peer (P2P) contributions, rather than relying on customer deposits. This innovative funding approach allows Lupiya to maintain a lean operational structure while sustainably extending credit.

Since its inception, Lupiya has demonstrated remarkable growth, accumulating a customer base of over 120,000 individuals and businesses. It has successfully facilitated loans totaling approximately ZMW 250 million, translating to roughly USD 9.4 million. This achievement highlights its impactful role in providing accessible financial solutions where traditional banking services may fall short. The company's ownership remains privately held, with key founders sharing stakes alongside notable institutional investors such as Alitheia IDF Fund, INOKS Capital SA, KfW DEG, and Enygma Ventures, all contributing to its financial strength and strategic direction.

Diverse Loan Products and Transparent Financial Specifications

Lupiya offers a comprehensive suite of loan products designed to meet a wide array of financial requirements for Zambian citizens and businesses. Understanding the specific needs of its target market, the company provides tailored solutions, ensuring that borrowers can find a product that aligns with their circumstances. The primary loan categories include:

• Personal Loans: General purpose loans for individuals.
• Civil Servant Loans: Specialized loans for government employees, often with favorable terms due to stable income.
• Zambia Defence Forces Loans: Dedicated financial products for military personnel.
• Business Loans: Encompassing various options such as Order Finance, Invoice Discounting, and Asset Financing, catering to the capital needs of SMEs.
• Agri Loans: Supporting the agricultural sector, these loans include financing for solar irrigation and horticulture, vital for enhancing farm productivity.
• Scheme Loans: Group-based lending solutions, often for organized community groups or associations.
• Collateral-Backed Loans: Requiring assets like property or vehicles as security, typically for larger loan amounts.
• Instant Loans: Quick access loans primarily available through the mobile application, designed for immediate financial needs.

Regarding loan amounts, Lupiya maintains a broad range to accommodate different financial scales. The minimum loan amount available is ZMW 500, which is approximately USD 25, making small loans accessible to many. The maximum loan amount can reach ZMW 250,000, equivalent to around USD 12,500, suitable for substantial business investments or larger personal requirements. The interest rates applied to these loans are structured to reflect the risk associated with digital lending and the specific product type. Annual Percentage Rates (APR) generally range from 2.5% to 40%, with the exact rate dependent on factors such as the loan product chosen, the loan amount, and the repayment term. Potential borrowers are advised to review these rates carefully during the application process, as they are transparently disclosed.

Loan terms offered by Lupiya are flexible, extending from a minimum of one month up to a maximum of 62 months, again varying significantly based on the chosen loan product. This flexibility allows borrowers to select a repayment schedule that aligns with their income cycles. In terms of fees, Lupiya applies origination or processing fees, the specific rates of which are clearly published on the application screen for each product. Late payment penalties are also enforced according to the product terms, typically ranging from 2% to 5% of the overdue amount. For collateral-backed loans, as the name suggests, property or vehicles are required as security, while smaller instant and personal loans are often unsecured. Repayment methods are convenient, including bank transfers, mobile money services (such as MTN MoMo and Airtel Money), and USSD for feature phone users, with debit card repayment functionality anticipated for future launch.

Seamless Access: Application Process, Technology, and User Experience

Lupiya has streamlined its application process to be as accessible and efficient as possible, leveraging technology to reach a wide demographic across Zambia. Potential borrowers can apply for loans through multiple convenient channels:

• Mobile Application: Available on both Android and iOS platforms, offering a full-featured digital experience.
• Website Portal: A responsive online platform at lupiya.com for desktop and mobile web users.
• USSD Interface: Catering specifically to feature-phone users, ensuring financial inclusion for those without smartphones.
• Agent Network: Physical touchpoints across the country provide in-person assistance and support, particularly in remote areas.

The Know Your Customer (KYC) and onboarding process is designed for digital efficiency. Applicants are typically required to provide a digital capture of their National Registration Card (NRC). For formally employed individuals, proof of residence and salary confirmation are necessary. Civil servant and defense force loan applicants also need to submit an employer approval letter. Lupiya employs an advanced credit scoring and underwriting system that integrates artificial intelligence (AI) and alternative data models. This innovative approach analyzes demographics, transaction patterns, and even social and mobile data to assess creditworthiness, especially for customers who lack traditional credit histories. Larger ticket loans and collateral-backed facilities may undergo an additional manual review process to ensure thorough assessment.

Once a loan is approved, funds are disbursed rapidly through various convenient methods. These include direct bank transfers to customer accounts, transfers to mobile money wallets (such as MTN MoMo and Airtel Money), and in some cases, cash payouts can be facilitated via Lupiya's agent network. The company's mobile application is a cornerstone of its service delivery, boasting an average rating of 4.2 stars on Google Play and 4.5 stars on the App Store. Users frequently praise the speed and ease of the application process. Key features of the app include a loan calculator for planning, secure document upload capabilities, real-time repayment tracking, and an integrated support chat for immediate assistance. While some users report occasional app crashes during peak usage, the overall user experience is highly positive. Lupiya's extensive geographic coverage ensures that its digital and agent network services are available across all ten provinces of Zambia, including numerous rural districts, reaching over 120,000 active customers nationwide.

Market Standing, Regulatory Adherence, and Customer Feedback

Lupiya holds a strong position within Zambia's competitive digital lending market, recognized as one of the top three digital lenders alongside prominent players like Biumoney and Zamloan. The company commands an estimated market share of 15% of the total digital loan volume, a testament to its effective operational strategies and customer acquisition efforts. Lupiya differentiates itself through several key aspects:

• AI-Driven Underwriting: Its sophisticated AI models enable efficient and accurate credit assessment for unbanked and underbanked segments, expanding financial access.
• P2P Funding Model: The peer-to-peer funding structure allows for sustainable loan book growth, reducing reliance on traditional deposit-based funding.
• Inclusion Focus: Extensive use of USSD and a widespread agent network ensures that financial services reach even the most remote parts of Zambia, promoting broad financial inclusion.

From a regulatory standpoint, Lupiya operates with full compliance, having been licensed as a non-bank financial institution by the Bank of Zambia since 2020 under the Single Licensing System. It is continuously supervised by the Non-Bank Financial Institutions Supervision Department of the Bank of Zambia, ensuring adherence to national financial regulations. Lupiya is committed to robust consumer protection measures, including transparent disclosure of Annual Percentage Rates (APR) and all associated fees online, compliance with Zambia’s Data Protection Act for user privacy, and provision of approved insurance cover on all loans, mitigating risks for both borrowers and lenders. There are no public records of any penalties or enforcement actions against Lupiya, indicating a clean regulatory track record.

Customer feedback, gathered from platforms like Google Play, Trustpilot, and Zambian online forums, generally reflects a positive experience. The app's speed in processing loans is frequently highlighted as a major advantage, earning an average rating of 4.2 stars on Google Play from over 8,000 reviews and 4 stars on Trustpilot. Customers appreciate the transparent loan terms. However, common complaints include occasional delays in document verification for larger loans and, historically, limited repayment channels in very remote areas, though the expansion of the agent network aims to address this. Lupiya maintains a responsive customer service presence, offering 24/7 in-app chat support and a call center operating from Monday to Saturday, with an average response time of under five minutes. Success stories further illustrate Lupiya's impact, such as an agritech farmer who secured ZMW 150,000 for irrigation, doubling crop yield, and a female civil servant who consolidated multiple debts into a single, manageable 36-month loan at a competitive 12% APR.

Practical Advice for Potential Lupiya Borrowers in Zambia

For individuals and businesses considering a loan from Lupiya, understanding the process and making informed decisions is paramount. As a financial analyst, I offer the following practical advice to ensure a smooth and beneficial borrowing experience:

• Clarify Your Loan Purpose: Before applying, have a clear understanding of why you need the loan and how it will be used. Lupiya offers diverse products, so selecting the right one from the outset is crucial for favorable terms.
• Thoroughly Understand Terms and Conditions: Pay close attention to the Annual Percentage Rate (APR), specific interest rates, and all associated fees (origination, processing, late payment penalties). Use the in-app loan calculator to estimate total repayment amounts accurately. Do not hesitate to ask for clarification from customer service if any aspect is unclear.
• Assess Your Repayment Capacity: Realistically evaluate your income and expenses to ensure you can comfortably meet the monthly repayments throughout the loan term. Over-borrowing can lead to financial strain and potential penalties.
• Utilize the Mobile App Fully: For convenience and efficiency, leverage the Lupiya mobile application. It provides access to loan application, document upload, repayment tracking, and direct customer support, streamlining your borrowing journey.
• Prepare Required Documents in Advance: Gather all necessary documents, such as your National Registration Card, proof of residence, salary slips, and employer approval letters (if applicable), before starting the application. This proactive step can significantly reduce processing delays.
• Be Aware of Collateral Requirements: If you are seeking a larger loan, be prepared for potential collateral requirements involving property or vehicles. Ensure you understand the implications of using assets as security.
• Consider All Repayment Channels: Familiarize yourself with the various repayment options offered, including bank transfers, mobile money, and USSD. Choose the method most convenient and reliable for your location and banking habits to avoid late payments.
• Compare with Alternatives: While Lupiya is a strong contender, it is always wise to compare its offerings with other licensed digital lenders in Zambia, such as Biumoney and Zamloan. This comparison ensures you secure the most competitive rates and suitable terms for your specific needs.
• Engage with Customer Service: Should you encounter any issues or have questions during the application or repayment phase, promptly contact Lupiya's customer service via their 24/7 in-app chat or call center. Proactive communication can resolve potential problems efficiently.

By following these guidelines, potential borrowers can navigate Lupiya's offerings effectively, ensuring they make responsible financial decisions that contribute positively to their economic well-being within the Zambian context.