Risk Disclosure
1. Purpose
This Risk Disclosure document is provided to help you understand the key risks associated with borrowing through the WanPaus Microfinance platform ("the Platform") operated by Pakimu Investment Limited T/A WanPaus Microfinance ("Pakimu"). You should read this document together with our Terms of Use, Responsible Lending Policy, and the specific terms disclosed to you before any loan is approved.
This is a summary of key risks. It is not exhaustive. The full terms of your loan are set out in the loan agreement presented to you before acceptance.
2. Cost of Credit Risk
WanPaus microfinance loans carry a high annual percentage rate (APR). The standard APR is 400% for all tiers. The Trustworthy rate is 300% APR, available after 15 consecutive on-time repayments.
These rates are high relative to bank lending and reflect the short-term, unsecured, digitally-issued nature of the product. Before accepting a loan, ensure you understand the total repayable amount, which is disclosed to you in full before acceptance.
Example: A K100 bullet loan at 400% APR for 14 days accrues approximately K15.34 of interest, for a total repayment of approximately K115.34. Interest calculations are disclosed precisely for your specific loan before you accept.
High-APR lending is not appropriate for long-term borrowing needs. These products are designed for short-term gaps between income events, not for sustained credit use. If you require a longer-term financial product, seek advice from a bank or other financial institution.
3. Repayment Risk and Over-Indebtedness
If you cannot repay your loan on time:
- (a) a late fee of 10% of the original principal is charged after the 5-calendar-day grace period;
- (b) your consecutive repayment streak resets to zero and your tier returns to BRONZE;
- (c) after 14 calendar days past the due date, your loan is declared DEFAULTED;
- (d) a default may be reported to credit bureaus, affecting your ability to borrow in future;
- (e) collections proceedings may be initiated.
Only borrow what you are confident you can repay by the due date. Do not borrow to repay another debt. Contact us at hi@wantekpng.com immediately if your financial situation changes and repayment is at risk.
4. Credit History Risk
Default on a WanPaus loan may be reported to credit bureaus or registries where Pakimu has a reporting relationship. A default record can:
- (a) reduce your ability to borrow from WanPaus in the future until the default is recovered;
- (b) affect your credit profile with other financial institutions that use bureau data;
- (c) remain on your bureau profile for a period determined by the bureau's own policies.
Default recovery (repaying the full outstanding balance) will be reflected on your bureau profile as RECOVERED. However, the fact of the original default remains on record.
5. Tier and Streak Reset Risk
Your borrowing limit (tier) and interest rate (Trustworthy status) are determined by your repayment history. A single late payment:
- resets your consecutive repayment streak to zero;
- returns your tier to BRONZE (K50 limit) regardless of prior tier;
- removes Trustworthy status if held.
Building your tier and Trustworthy status requires sustained, consistent on-time repayment behaviour.
6. Interest Rate Risk
Loan interest rates are fixed at the time of loan approval. The rate applicable to you depends on your Trustworthy status at approval, not at repayment. Rates quoted on our website are current rates and may change for future loans. The rate for any specific loan is locked in and disclosed to you before acceptance of that loan.
7. Refinancing Risk
Where refinancing is available (where your lender has enabled this feature), refinancing extends your due date but adds additional interest calculated on your outstanding principal. Refinancing is not a cost-free extension — it increases the total amount you owe. The total additional cost of a refinancing is disclosed before you confirm.
Repeated refinancing of a loan increases your total debt. Use refinancing only where you have a clear expectation of being able to repay the higher outstanding balance on the extended due date.
8. Platform and Technology Risk
The Platform is delivered via the internet. Service interruptions, maintenance windows, or connectivity failures may temporarily prevent you from accessing the Platform or submitting repayments. It is your responsibility to plan repayments in advance to avoid missing a due date due to technical issues. Contact us at hi@wantekpng.com if a confirmed technical issue on our side prevented a timely repayment — we will consider such circumstances when assessing late fees.
9. Data and Privacy Risk
You provide personal and financial information to the Platform as part of the loan application and KYC process. We take the security of this data seriously (see our Security Statement and Privacy Policy). However, no system is completely immune to security incidents. In the event of a breach affecting your data, we will notify you and relevant authorities as required by law.
You are responsible for the security of your login credentials and OTP codes. Do not share these with anyone. Pakimu staff will never ask for your OTP or password.
10. Regulatory Risk
Pakimu operates as a microfinance lender in Papua New Guinea and is engaged in the process of meeting its regulatory obligations with the Bank of Papua New Guinea. The regulatory environment for microfinance in PNG is evolving. Changes in regulation may affect the availability, terms, or operation of loan products in the future. Pakimu will notify you of any material changes that affect your existing loan before they take effect.
11. No Financial Advice
Nothing in this document or on the Platform constitutes financial, legal, or tax advice. You should seek independent professional advice before entering into any loan agreement if you are uncertain about your ability to repay or about the suitability of this product for your circumstances.
12. Contact
If you have questions about the risks described in this document, contact us before accepting a loan:
Pakimu Investment Limited T/A WanPaus Microfinance
Email: hi@wantekpng.com
Papua New Guinea