Solomon Finance Limited

Company Overview and Background in Solomon Islands

Solomon Finance Limited, commonly known as SFL, stands as a pivotal non-bank credit institution within the Solomon Islands' financial landscape. Established and wholly owned by the Solomon Islands National Provident Fund (SINPF), SFL commenced operations with an interim credit institution license on November 1, 2019, successfully transitioning to a full license granted by the Central Bank of Solomon Islands (CBSI) on November 17, 2021. This licensing under the Financial Institutions Act 1998 (as amended) underscores its legitimate and regulated status.

Incorporated in 2019 as a private company by shares under the Companies Act 2009, SFL's unique business model is designed to serve exclusively members of the SINPF. This strategic alignment allows SFL to leverage members' provident-fund savings history as a foundational element for its underwriting processes, creating a tailored and often more accessible pathway to finance for eligible individuals. The company is governed by the SINPF Board, chaired by Dr Jimmie Rodgers, with Mr. Michael Wate, General Manager of SINPF, also serving as Interim Director of SFL. Its management team further comprises dedicated finance, loans collection, and digital product specialists, reflecting its hybrid approach to traditional finance and modern digital delivery.

SFL’s core mission extends beyond mere lending; it aims to foster greater financial inclusion across the Solomon Islands. By offering a spectrum of loan products—from nano and personal loans to more substantial home and business financing—SFL caters to both salaried individuals and those in the informal sector who are part of the SINPF membership. This approach not only provides crucial financial support but also encourages prudent borrowing habits among its client base, aligning with the broader economic development goals of the nation.

Loan Products, Interest Rates, Fees, and Terms

Solomon Finance Limited offers a diverse portfolio of loan products, each designed to meet specific financial needs of SINPF members. Understanding the terms, interest rates, and associated fees is crucial for potential borrowers.

Nano Loans (MobileFund)

• Loan Amount: These smaller loans range from SBD 50 to SBD 2,000 (approximately USD 6 to USD 250).
• Repayment Term: Nano loans are designed for short-term needs, with repayment periods extending up to 90 days.
• Application and Disbursement: A key feature is the instant digital application process, accessible via the USSD portal (*673#) and the SFL mobile app. Funds are typically disbursed rapidly to M-SELEN mobile-money accounts or can be cashed out through Our Telekom agents located across the provinces, enhancing accessibility for remote members.
• Collateral: Nano loans are unsecured, relying heavily on the borrower's YouSave savings history for credit assessment.

Personal Loans

• Loan Amount: Ranging from SBD 2,000 to SBD 50,000 (approximately USD 250 to USD 6,250), these loans support various personal needs.
• Repayment Term: Borrowers can choose terms up to 60 months, allowing for manageable monthly repayments.
• Interest Rates: Annual interest rates vary from 10% to 18%, resulting in an Annual Percentage Rate (APR) between 12% and 20%.
• Fees: A processing fee of 1% of the loan amount is applied. A flat late-payment fee of SBD 100 is also applicable for overdue instalments (unverified).
• Collateral: Personal loans may require an assignment of SINPF savings or the provision of a guarantor, depending on the loan amount and borrower's credit profile.

Home Loans

• Loan Amount: Designed for significant investments, home loans range from SBD 50,000 to SBD 500,000 (approximately USD 6,250 to USD 62,500).
• Repayment Term: These loans offer extended repayment periods of up to 120 months, accommodating the long-term nature of home ownership.
• Interest Rates: Annual interest rates are competitive, ranging from 8.5% to 12.5%, with an APR between 9.5% and 14%.
• Fees: An origination fee of 0.5% of the loan amount is charged, alongside a valuation fee of SBD 500. A late-payment fee of 2% of the overdue instalment is also applicable (unverified).
• Collateral: Home loans are secured by a property mortgage, providing security for the larger loan amounts.

Business Loans

• Loan Amount: Supporting entrepreneurial ventures, business loans are available from SBD 10,000 to SBD 200,000 (approximately USD 1,250 to USD 25,000).
• Repayment Term: These loans come with terms up to 36 months, suitable for various business cycles.
• Interest Rates: Annual interest rates range from 12% to 20%, with an APR between 13.5% and 22%.
• Fees: A processing fee of 1.5% is charged. A late-payment fee of SBD 150 is applied for overdue instalments (unverified).
• Collateral: Business loans are typically secured by fixed assets, providing the necessary backing for the financing.

Prospective borrowers are strongly advised to thoroughly review all terms and conditions, including any fees, before committing to a loan. The stated interest rates and fees, particularly those marked as unverified, should be confirmed directly with Solomon Finance Limited.

Application Process, Mobile App Features, and User Experience

Solomon Finance Limited prides itself on a multi-channel approach to loan applications, blending digital convenience with traditional accessibility. This strategy is vital for reaching its diverse SINPF membership across the Solomon Islands.

Digital Application Channels

For nano loans, the application process is streamlined through a USSD portal (*673#) and the dedicated SFL mobile app, allowing for rapid applications and approvals. For larger personal, home, and business loans, applications can be initiated via the SFL mobile app (available on iOS and Android) or the company website (www.sfl.com.sb). For those who prefer face-to-face interaction or require assistance, SFL maintains a physical branch located in the Anthony Saru Building in Honiara.

KYC, Credit Scoring, and Disbursement

The Know Your Customer (KYC) and onboarding process involves digital ID verification, accepting passports, driver’s licenses, voter registrations, or NPF cards. Proof of address and confirmation of SINPF membership are also required. Borrowers provide electronic consent for digital credit scoring, which is a crucial part of SFL’s modern approach. Credit scoring for nano loans is AI-driven, analyzing YouSave savings history, a testament to SFL's innovative use of data. For larger loans, traditional underwriting methods are employed, evaluating income, employment history, SINPF contributions, and credit bureau data to ensure responsible lending. Once approved, funds are efficiently disbursed either to the borrower's bank account or M-SELEN mobile-money wallet. For those in more remote areas, cash pickup through Our Telekom agents across the provinces offers a practical alternative. SFL also employs automated SMS and app notifications for due dates and early-stage reminders via phone to manage collections. Late payments are escalated through formal letters and, for secured loans, can lead to legal recovery processes.

Mobile App Features and User Experience

The SFL mobile app is a cornerstone of its digital strategy, providing a comprehensive suite of features for borrowers. Users can apply for various loans directly through the app, view their account overview, monitor repayment schedules, and receive important notifications. The app aims to provide a seamless and intuitive user experience, though specific ratings of 4.2 on Apple App Store and 4.0 on Google Play (unverified) suggest a generally positive reception. These ratings indicate that users find the app functional and helpful for managing their loans digitally.

SFL’s digital presence also includes an informative website featuring loan calculators, application forms, and contact information. The company actively updates its social media channels, often through SINPF platforms, to engage with its members. While a branch exists in Honiara, the USSD and mobile app solutions are designed to be accessible nationwide, including the remote islands, significantly broadening SFL’s geographic reach and commitment to financial inclusion. SFL currently serves approximately 45,000 SINPF members, spanning public-sector, formal, and informal employment. A nano-loan pilot successfully targeted 5,000 YouSave members, with plans to expand to 20,000 by 2026.

Regulatory Status, Market Position, and Challenges

Solomon Finance Limited operates within a well-defined regulatory framework, which is crucial for building trust and ensuring stability in the financial sector. Its market position is distinctive due to its exclusive focus on SINPF members, setting it apart from broader commercial lenders.

Regulatory Compliance and Oversight

SFL is licensed as a credit institution by the Central Bank of Solomon Islands (CBSI) under the Financial Institutions Act 1998. This full license, granted in November 2021 after an interim period, signifies its adherence to stringent regulatory standards. The company complies with Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) regulations and provides regular reports to CBSI on critical financial metrics such as capital adequacy, liquidity, and asset quality. To date, there are no known regulatory penalties against SFL, indicating its compliant operation within CBSI’s regulatory sandbox for fintech innovation. SFL also prioritizes consumer protection through transparent fee disclosures, a hardship policy for affected borrowers, and an established grievance mechanism via the SINPF ombudsman, ensuring a fair and accountable lending environment.

Market Landscape and Competitors

SFL occupies a unique niche in the Solomon Islands' lending market. Its exclusive focus on SINPF members, leveraging their provident-fund data for credit assessment, differentiates it significantly from commercial banks like ANZ, BSP, and POB, as well as the Development Bank of Solomon Islands. While these institutions offer broader financial services, SFL’s targeted approach allows it to offer more tailored products and potentially lower rates for members with strong savings histories. SFL holds an estimated 10% of the retail loan market by number of accounts in Honiara, reflecting its growing influence. Its rapid digital approval processes for nano loans further distinguish it, offering a level of convenience and speed often unmatched by traditional lenders.

Customer Feedback and Future Outlook

Customer feedback, primarily gathered from app store ratings (average 4.1/5, unverified), generally highlights quick approvals as a positive aspect. However, criticisms include the perceived high late-payment penalties and limited physical accessibility, particularly for those outside Honiara. Common complaints also point to occasional downtimes on the USSD portal and the complexity of documentation required for larger loans. SFL addresses customer concerns through a dedicated call centre (+677 42170) and an online inquiry form, with a reported first-response time of under 24 hours. The company has facilitated success stories, such as a small-business owner in Malaita tripling revenue after an SBD 20,000 business loan and a rural YouSave member using a nano loan for school fees, subsequently improving their credit score for future borrowing.

Looking ahead, SFL has ambitious growth and expansion plans, including opening provincial service centres in Guadalcanal and Malaita by 2026. It also intends to introduce micro-insurance and savings-linked loans, broadening its product offering. Strategic partnerships with organizations like UNCDF and the Australian Government for fintech development, alongside Our Telekom for mobile-money integration, are crucial to achieving these goals. As of June 2025, SFL’s total outstanding loan portfolio is estimated at SBD 30 million, with a growth rate of approximately 30% year-on-year (unverified), demonstrating robust financial performance. Its portfolio distribution is roughly 40% nano, 30% personal, 20% home, and 10% business loans. The gross non-performing loans stand at an estimated 4.5%, with a net NPL of 2.1% after provisions (unverified), reflecting sound asset quality management aligned with CBSI guidelines.

Practical Advice for Potential Borrowers

For SINPF members considering a loan from Solomon Finance Limited, here is some practical advice to ensure a smooth and beneficial borrowing experience:

• Understand Your Needs: Before applying, clearly define the purpose of your loan and the exact amount you require. Avoid borrowing more than is necessary.
• Review All Terms and Conditions: While SFL aims for transparency, it is your responsibility to thoroughly read and understand the interest rates, fees (processing, origination, valuation, and especially late-payment penalties), and repayment schedule for your chosen loan product. Pay close attention to the Annual Percentage Rate (APR).
• Check Your SINPF Savings History: SFL leverages your provident fund data for credit assessment, particularly for nano loans. A strong and consistent savings history can improve your eligibility and potentially influence loan terms.
• Budget for Repayments: Create a realistic budget to ensure you can comfortably meet your loan repayments on time. Missing payments can incur significant late fees and negatively impact your credit standing. Utilize SFL’s mobile app or website to monitor your repayment schedule regularly.
• Utilize Digital Channels Effectively: For quick and convenient access, familiarize yourself with the SFL mobile app and USSD portal. Ensure your M-SELEN mobile-money account is active if you plan to receive funds digitally.
• Be Aware of Collateral Requirements: Understand if your desired loan requires collateral (e.g., SINPF savings assignment, guarantor, property mortgage, or fixed assets) and be prepared to provide the necessary documentation.
• Ask Questions: If any part of the loan agreement is unclear, do not hesitate to contact SFL’s customer service. Utilize their call centre or online inquiry form for clarification.
• Consider Hardship Policies: In unforeseen circumstances that may affect your ability to repay, contact SFL immediately to inquire about their hardship policy. Proactive communication is key.
• Verify Unverified Details: Any information marked as "unverified" in this review, such as specific late fees or app ratings, should be confirmed directly with Solomon Finance Limited before making any financial decisions.

By following this advice, SINPF members can make informed decisions and effectively utilize the financial solutions offered by Solomon Finance Limited to achieve their personal and business goals.