Understanding Smooth Finance: A Digital Lending Leader in Cameroon
In Cameroon's evolving financial landscape, digital lending platforms are increasingly playing a vital role in providing accessible credit solutions. Among these, Smooth Finance Company Limited stands out as a significant private fintech entity. Founded in May 2023, Smooth Finance has rapidly positioned itself to address the short-term liquidity and working capital needs of Cameroon's diverse population.
Operating under the legal name Smooth Finance Company Limited, the company is registered in Cameroon, though its registration number (FC/Yaoundé-CMC/2023/B/12345) remains unverified. As a privately held limited liability company, its ownership structure includes three founding shareholders, comprising two Cameroonian entrepreneurs and one regional fintech investor, an arrangement that remains unverified but suggests a blend of local insight and broader financial backing.
Smooth Finance's core business model revolves around extending unsecured credit lines through its dedicated mobile application, known as Le Prêt. This approach targets Cameroonian citizens aged eighteen and above who maintain an active bank account. The primary beneficiaries are salaried individuals seeking immediate financial relief or short-term funds, as well as small business owners requiring flexible working capital to manage their daily operations and drive growth. The management team, including CEO Ms. Aicha Mbarga, CTO Mr. Jean Paul Ngu, and COO Ms. Mireille Etoundi, oversees the company's strategic direction and operational efficiency, although these executive roles are currently unverified.
Smooth Finance Products: Flexible Revolving Credit via Le Prêt
The flagship offering from Smooth Finance is its Revolving Credit product, branded as Le Prêt. This innovative solution provides borrowers with an unsecured credit line, allowing them to draw funds, repay, and then draw again repeatedly, all within their approved limit. This flexibility is particularly beneficial for managing intermittent financial needs without requiring new applications for each instance of borrowing.
Loan Amounts, Interest Rates, and Terms
- Loan Amounts: Le Prêt offers loan amounts ranging from a minimum of 50,000 XAF (approximately 82 US dollars) up to a maximum of 500,000 XAF (approximately 825 US dollars). This range caters to both minor personal cash flow gaps and more substantial, short-term business requirements.
- Interest Rates: The Annual Percentage Rate (APR) for Smooth Finance loans varies between 3% and 12% per annum. The specific rate applied depends on the individual borrower's credit profile, ensuring a personalized approach to lending. Interest accrues daily, but only on the drawn balances, which is a key feature of revolving credit that can lead to cost savings if funds are repaid promptly.
- Loan Terms: Repayment periods are flexible, extending from three to twenty-four months. This allows borrowers to choose a term that aligns with their financial capacity, making repayments manageable.
Fee Structure and Collateral
Understanding the costs associated with borrowing is crucial. Smooth Finance applies a transparent fee structure:
- Origination/Processing Fee: An origination or processing fee of up to 2% of the approved credit limit may be applied, though this detail remains unverified.
- Late Payment Fee: For overdue installments, a late payment fee of 5% of the installment due, coupled with a daily penalty, is reportedly charged. Borrowers should always aim to meet their repayment schedules to avoid these additional costs, which are also currently unverified.
A significant advantage of Smooth Finance's Le Prêt product is its unsecured nature. No collateral is required for credit lines up to 500,000 XAF, making it an accessible option for individuals and small businesses who may not have assets to pledge.
Navigating the Smooth Finance Experience: Application, App, and Regulation
Smooth Finance leverages technology to deliver a seamless and efficient lending experience. The primary channel for engaging with their services is the Le Prêt mobile application, which streamlines the entire process from application to disbursement.
Application Process and Requirements
The application journey begins with downloading the Le Prêt app, which is currently available exclusively on Android devices (requiring Android 5.0+ and having a size of 23.8 MB). An iOS version is reportedly planned for the first quarter of 2026. While a corporate website exists (sikadua.com), it offers limited public details, emphasizing the app-centric nature of the service.
To apply, users register via the app and are required to upload a valid national identification document and proof of address. Smooth Finance employs automated verification processes, utilizing Optical Character Recognition (OCR) and third-party identity Application Programming Interfaces (APIs) for rapid identity verification within minutes, a claim that is currently unverified. Credit scoring and underwriting are powered by a proprietary model that analyzes mobile data, bank transaction history, and publicly available credit bureau data, enabling automated decision-making for credit limits within pre-approved risk bands (details unverified).
Mobile App Features and User Experience
The Le Prêt app is central to the user experience. It boasts a strong rating of 4.46 out of 5 stars from over 16,000 reviews, indicating overall user satisfaction. With over 830,000 total downloads, its widespread adoption speaks to its relevance in the Cameroonian market. Key features of the app include:
- Seamless drawing and repayment of revolving credit.
- An integrated loan calculator for financial planning.
- Option to request an increase in the credit limit.
- Ability to export repayment schedules for personal record-keeping.
Disbursements are typically made via direct deposit to the customer's bank account through interbank transfers. There are also unverified reports of mobile money transfers to popular platforms like MTN MoMo and Orange Money, which would significantly enhance convenience for many Cameroonians.
For collections and recovery, Smooth Finance uses automated repayment reminders sent via SMS and push notifications. In-app auto-debit facilitates scheduled installments. For accounts that become delinquent after thirty days past due, field agents are reportedly engaged for recovery efforts, though this aspect remains unverified.
Smooth Finance caters primarily to an estimated 100,000 active users (unverified), predominantly salaried professionals and small-business owners aged between 25 and 45. The company claims nationwide coverage in urban and peri-urban areas across all ten regions of Cameroon, though this is also unverified.
Regulatory Status and Consumer Protection
Operating within Cameroon's financial sector, Smooth Finance is reportedly licensed as a microfinance institution under the Central African Banking Commission (COBAC) regulations, an important detail that is currently unverified. Adherence to COBAC guidelines on lending rates and consumer protection is stated, alongside compliance with anti-money laundering (AML) and counter-terrorism financing (CTF) standards, including robust customer due diligence (CDD).
As of September 2025, there have been no known enforcement actions or penalties against Smooth Finance, suggesting a compliant operational history. Consumer protection measures include transparent APR disclosure within the app, a fourteen-day cooling-off period for new loans, and a dedicated grievance redressal system accessible via in-app chat and a call center, available from 09:30 to 17:00 local time with an average ticket resolution time of 48 hours (unverified).
Smooth Finance in the Cameroonian Market: Competition and Borrower Insights
Smooth Finance has quickly established a strong market presence in Cameroon, ranking among the top three fintech lenders by app downloads. This position reflects its ability to meet the growing demand for digital financial services. However, it operates in a competitive landscape.
Comparison with Competitors
Smooth Finance competes with a range of financial service providers in Cameroon:
- Mobile Money Loans: Competitors include services like MTN MoMo loans, which leverage the extensive reach of mobile money networks.
- Traditional Banks' Digital Offerings: Established banks such as Afriland First Bank also offer digital credit solutions, combining traditional banking trust with modern accessibility.
- Neo-bank Startups: A burgeoning ecosystem of neo-bank startups is also entering the market, often providing fully digital banking and lending services.
Smooth Finance differentiates itself through several key aspects:
- Pure-Digital Model: Its emphasis on a fully digital application and management process appeals to tech-savvy users seeking convenience.
- No-Collateral Revolving Credit: The absence of collateral requirements for its revolving credit product makes it highly accessible.
- Fast Disbursement: A significant advantage is its claim of fast disbursement, often within thirty minutes, addressing urgent financial needs.
Growth Trajectory and Customer Experiences
The company has ambitious growth plans, targeting 200,000 active users by the end of 2026. Future expansion includes launching an iOS app and integrating with mobile money USSD services in 2026, which would broaden its reach to users without smartphones or with feature phones (unverified). Partnerships with MTN MoMo and Orange Money for seamless disbursements and repayments are also pending, promising enhanced user convenience (unverified).
Customer reviews generally indicate positive sentiment, with many praising the ease of use and speed of the service. Common complaints, though, include occasional document verification delays and app crashes, as reported in unverified customer feedback. A reported success story highlights a small retailer in Douala who expanded inventory using a 200,000 XAF credit line, leading to a 30% boost in monthly turnover (unverified).
Practical Advice for Potential Borrowers
For any Cameroonian considering a loan from Smooth Finance or any other digital lender, prudent financial practices are essential:
- Understand the Terms Fully: Always read and comprehend the interest rates, fees, and repayment schedules. Be clear about the total cost of borrowing.
- Borrow Responsibly: Only borrow what you genuinely need and are confident you can repay within the agreed timeframe. Over-borrowing can lead to financial strain.
- Check Your Credit Profile: While Smooth Finance uses its own scoring model, understanding your financial standing can help you manage expectations regarding approved limits and rates.
- Plan Repayment: Ensure you have a clear plan for how you will repay the loan. Utilize the in-app repayment schedule feature to stay organized.
- Use for Productive Purposes: Consider using credit for productive investments, such as expanding a small business or addressing urgent, essential needs, rather than for impulse purchases.
- Compare Options: Even with a fast service like Smooth Finance, it is wise to compare offers from various lenders in Cameroon to ensure you are getting the most favorable terms.
Smooth Finance represents a modern approach to lending in Cameroon, offering quick, digital access to credit. While many of its operational and financial details remain unverified, its user base and market position suggest a significant impact on local financial inclusion. As the company grows and its offerings evolve, it will continue to be a key player in the nation's digital financial services sector.
