Olamide Famuwagun

Access Bank Loan: USSD Loan Code & Requirements

December 20, 2021 by Olamide Famuwagun

Loans are a common part of life in Nigeria. Many people have borrowed money at some point in their lives. This is normal, and there are many reasons why someone might need to borrow money.

Access Bank provides various loans for individuals and businesses. Borrow money from Access Bank for personal expenses, business growth, or homeownership.

You can get access to an instant loan by dialing *901*11#, *426*11#.

Access Bank Loan Code

Access Bank makes it easy to get payday and personal loans with the simple USSD code *901*11#. Customers can borrow funds to meet their financial needs.

The alternative is via Internet Banking, Access Mobile App, and QuickBucks App.

Access Bank Loan Requirements

For the creative sector loan, you need a business plan or a statement of how much you need for your business.
Apply for a LATO loan, salary advance loan, or small ticket loan. Share your BVN-linked phone number and proof of last month’s salary.
Apply for a personal loan by filling out a form. Attach a letter from your employer confirming your job. Include your work ID. Provide your Bank Verification Number (BVN) and give permission for a credit check. You’ll also sign a lien letter, letting Access Bank take your assets if you can’t pay back the loan.
To get a W Power loan, your business needs to be 50% owned by females. It must have operated for at least 1 year. You should have at least 2 staff members.
To get money for school fees, fill out the application form. Have an accepted offer letter. Your school fees bill. A valid ID card. A utility bill from the last 3 months.

When you receive a loan from Access Bank, they will inform you on how to repay the loan.

For most of the products, you will pay monthly installments after about 30 days of receipt. To save you from the stress of visiting your banks, the amount is deducted from your account every month.

Conclusion

Access Bank makes getting loans in Nigeria easy. They provide various loan options and offer different ways to apply or get more info. Apply using the Access Mobile App, Internet Banking, WhatsApp Banking, or QuickBucks App.

Banks That Offer Instant Loans Without Collateral in Nigeria

December 19, 2021 by Olamide Famuwagun

When urgency strikes, waiting for traditional loan approval processes may take time. This has led to the rise of banks offering instant loans without collateral.

Here are some of the banks offering instant loans without collateral in Nigeria.

1. First City Monument Bank [FCMB] Limited

One of the leading financial institutions in Nigeria is FCMB. The bank continues to deliver exceptional services to its customers. It provides the following loans without collateral:

Auto Loan
Salary Top-Up Loan
Fastcash Loan
Premium Salary Loan

You can get the FCMB instant loan without collateral using the USSD code *329*11#.

2. WEMA Bank

If you have a Salary Current Account or Savings Account with WEMA Bank, it’s easier to get a loan. The loan amount can be up to seven times the net monthly salary, capped at N2 million, with no collateral.

WEMA Bank ensures a swift 48-hour loan disbursement process. This loan option is only for confirmed employees.

The WEMA Bank USSD code for loans in Nigeria is *945*65#. Dial *945*65# and follow the prompts to get your loan.

3. Stanbic IBTC

Stanbic IBTC is another bank that offers personal loans with zero collateral. This is also one of the banks that will grant you a loan in Nigeria without a salary account.

They structure their terms for repayment within one to five years. During this period, borrowers make monthly installments.

You can request the Stanbic IBTC loan by dialing *909*44# on your phone.

4. Zenith Bank

Zenith Bank in Nigeria is well-known for offering a variety of loans. They have options for loans, such as SME Loans, Overdrafts, and Receivable Discounting.

Customers who borrow can get financing for materials without needing to provide collateral. They can do this by using the Local Purchase Order (LPO).

Zenith Bank helps borrowers with extra funds by offering overdrafts to qualified customers. This option usually lasts for like twelve months.

Dial 96600# from the phone number connected to your Zenith bank Account to get a loan.

Read: Federal Government Loan

5. Fidelity Bank

Fidelity Bank provides various loans. Some include the Payday loan and the Fidelity Easy Asset Leasing Scheme (FEALS). The Payday loan is for salary earners with accounts at Fidelity Bank.

These loans do not need collateral.

To get a Fidelity loan without collateral, dial the code *770*08#.

6. First Bank

FirstCredit is a quick and easy loan from First Bank to support your transactions. You can access this loan from anywhere without visiting the bank.

You do not need any documentation or collateral. All you need is a mobile phone or tablet.

The First Bank loan code is *894#.

Read: Sharp Sharp Loan Code

7. United Bank for Africa [UBA]

UBA offers loans with low interest, easy repayment, and a simple application process. It’s a good option for people who need money right away and want to avoid offering collateral.

The UBA Bank Nigeria quick loan code is *919*28#.

8. GT Bank

The GTBank Quick Credit is one loan option from GTBank that is very easy and super fast to get.

You get your funds to your bank account within two hours of approval, without collateral. You can borrow up to N5 Million with ease using the GTBank Quick credit loan. The bank’s loan code is *737*51*51# to apply

9. Access Bank

You can get quick loans without collateral with the Access Bank Quick Bucks, a bank mobile app. It lets you access low-interest loans from Access Bank.

All you have to do is install the Access Bank Quick Bucks app and start with the process.

Conclusion

Banks with no-collateral loans are excellent for people who need quick money. Try one of the options above today!

5 Things To Consider Before Going For A Bank Loan

December 9, 2021 by Olamide Famuwagun

A loan is simply the lending of cash by a person or organisation (a lender) to another entity (a borrower). In most cases, the lender expects the borrower to pay back the money in the future with Interest. In this writeup, we focus on the loans financial organisations such as banks provide.

5 Things To Consider Before Going For A Bank Loan

Why Do People Take Bank Loans?

There are so many reasons why individuals borrow money. But at the core of every motive, lies a financial obligation that needs attending to. By taking a bank loan or from any of the platforms where you can get an instant online loan in Nigeria, you can meet these obligations and focus on other areas of your life.
As important and helpful as getting the right loan can be, it is equally important to understand what the loan offer entails.

What are the 5 Things to consider before accepting the Bank loan?

Whether this is your first time applying for a bank loan or it’s a routine, there are five factors to always look out for. These help you determine the right kind of lender; you can trust and work with you on a long term basis.

1. Credibility

When finding a lender for your loan, take a close look at the lender’s reputation. A quick google search to see what comes up under their name is a good start. Also, Look out for articles written about them and customer reviews to have an idea of who you’re working with.

2. The rate of Interest

An interest rate is an amount that the lender charger on top of the money loaned. Do thorough research to know which lender offers the lowest interest rates.

Also, ensure to check your credit score before applying. This is because your credit score will have an effect on the Interest you will be charged.

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Did you know that you can now you can compare interest rates from different lenders with our loan simulator and get the best deal? Making an informed loan decision requires comparing different loan offers before making a commitment. Through our simulator, you can see at a glance, loan offers coming from different lenders in less than 5 minutes, so you can make the right decision regarding your financing. Try it today

3. Payment flexibility

It is vital to examine the lender’s payment plan to know if it’s convenient for you to pay back. It is also essential to find out how flexible they are willing to be if the payment structure does not work for you.

4. Response times

When it comes to financial matters, customer support is critical. You wouldn’t want a lender that takes a long time to process your loan or does not quickly respond to urgent queries. If their services are not as swift as you’d want, take your business elsewhere.

5. Understand the terms of the bank loan

Different lenders adopt different fee structures. While some lenders may sneak in additional fees such as early exit fees, others do not. So it is essential you fully understand loan terms before penning your signature on the dotted line.

Bottom Line

In reality, there are many other factors to consider when applying for a bank loan – from monthly income, monthly expenses, assets and liabilities for collateral assessment, and so on.

These factors play a vital role in guiding your decision to take a bank loan. However, other factors are quite essential but not within reach for quick research.

Another factor worthy of mention is different banks have different approaches and appetites to loans. While some banks may be industry-focused, some look out more for profitability rather than interest rates. Regardless of how they like to play the game, it is crucial for you to know what game they are playing before taking them on. For options on bank loans, you can check out our post on Zenith Bank loan.

The bottom line is taking the extra steps to tidy up your application documents as well as a bit of research would get you steps closer to achieving your goal. Never be in haste to accept a loan offer if the terms seem unfavourable.

Getting rejected for a loan by the bank isn’t the end of the world, the most important thing is picking up the pieces and starting again.

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How To Get Agric Loans In Nigeria

December 6, 2021 by Olamide Famuwagun

The Nigerian government has continued to foster an enabling environment for the farming sector. In recent times the emergence of the agrotech industry has extended the opportunities of agriculture to more people who are willing to invest in the agricultural sector.

Despite government efforts as well as improved investment opportunities in the agricultural sector, many farmers and investors still have challenges accessing agricultural loans in Nigeria. Given this problem, we have highlighted a few ways you can access an agricultural loan in Nigeria below.

FEDERAL GOVERNMENT LOANS

The currently available federal government loans include:

1. CENTRAL BANK OF NIGERIA (CBN)

CBN provides loans for existing and intending farmers at a low annual interest rate. In the last decade, the CBN has injected over 100b into the agricultural sector and has made the fund available to all states through the Bank of Agriculture and other commercial banks

These are the kind of loans the CBN offers to farmers and investors alike

2. THE COMMERCIAL AGRICULTURE CREDIT SCHEME

The Commercial Agriculture Credit Scheme was established in 2009 to speed up the development of the agricultural sector; enhance national food security; reduce the cost of credit in agricultural production. Many commercial banks have access to this scheme and give loans at a maximum of 9% interest rate. The fund is also available to state governments for on-lending to farmers.

To be eligible for this agric loan, you’ll have to partake in this produce:

Livestock, Cash crops, food crops, poultry, aquaculture, processing, marketing, storage of agrochemicals, and supplies of farm input.

3. REAL SECTOR SUPPORT FACILITY

This is another initiative of the Central Bank of Nigeria. The Facility will support large enterprises for startups and expansion financing needs of N500 million up to a maximum of N10. 0 billion.

One of the real sectors being targeted is the agricultural sector, and farmers and investors can take advantage of that.

The tenure of the loan is up to 15 years, and the interest rate is quite low. The basic requirements to access this type of loan are;

A business plan
Certificate of incorporation
Apply formally
Memorandum and Article of Association

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4. MICRO SME DEVELOPMENT FUND

On August 15, 2013, the CBN launched the MSME Development Fund, with a share capital of N220 billion. 90% of the fund was made available to Participating Financial Institutions-PFIs- at 2% for on-lending to MSMEs at a maximum interest rate of about 9% per annum.

One of the eligible beneficiaries of this fund is farmers and investors in the agricultural sector. So if you need a credit facility to expand your agri-business, this could help.

5. Bank Of Agriculture (BOA)

Formerly Nigerian Agricultural Bank and incorporated in 1972, The Bank Of Agriculture has evolved over the years in its service to the agricultural sector. The federal government of Nigeria owns it while the Federal Ministry of Finance CBN is an investor.

To get access to this loan, you’ll need the following essentials:

Present a complete plan for your business
Have available, a 20% partial payment of the loan.
You should have at least a six-month relationship with the bank in terms of making payments into your account no matter how small
Also, you need to provide evidence of a physical collateral

BANK OF AGRICULTURE PRODUCTS

Micro Credit loans
Grow and earn more-(gem)
Loan application for SME (Individuals)
Lastly, loans from commercial banks:

6. Private And Non-government Organisation Commercial Banks

Another source of funding is from commercial banks, and they can offer you loans based on your preference. They have long, short, and medium-term loans infused into different products. Basically, these loan products have different criteria, and some are unique to the institutions offering them. Examples of such banks include First Bank, Access Bank, Stanbic IBTC, Union, and UBA.

The basic requirements for obtaining a loan from any commercial bank may vary, and they include the following but are not limited to;

You should have an existing account with any of them.
You’ll be required to apply and then present an application for the loan
You should have made a 10% partial payment of the loan.
Collateral will have to be presented.
Lastly, present a complete plan of your business along with a business’ viability study.

7. Agricultural Co-operative Societies

If you are part of any co-operatives, there is a great chance of receiving grants provided by some banks.

Here are the requirements:

Be a member of one of the co-operatives
Apply to the bank with the letterhead of the co-operative which appended by one of its representatives
Lastly, you need to present a viability study on the business plan

If you don’t know which co-operative to join, here are some:

All Farmers Association of Nigeria (AFAN);
Youth Empowerment in the Agricultural Program (YEAP);
Also, FADAMA

Farmers and Agricultural SMEs also have access to lenders focused on agricultural loans to help take their business to the next stage.

Conclusion

These ways to get access to agric loans in Nigeria will be perfect for Nigerians that want to either start up a business in agriculture or expand their existing operations.

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Addosser microfinance bank – Everything you need to know

December 2, 2021 by Olamide Famuwagun

Most SMEs in a country like Nigeria, do not meet the commercial bank requirements to receive certain loan amounts. This, for a long time, made them stuck at certain levels of operation until the emergence of microfinance banks. Addosser Microfinance bank is one of the institutions that is dedicated to providing loans for SMEs and individuals in the country. If you are in either category, read on to find out everything you should know about Addosser Microfinance bank.

About Addosser Microfinance bank

Incorporated on the 27^th of May 2008, Addosser Microfinance Bank has played a major role in expanding the financial options of SMEs. In the last decade, they have provided an excess of N36 billion in loans to businesses all over the country. Beyond a doubt, Addosser Microfinance Bank is one of the leading microfinance banks in Nigeria.

They are managed by a board filled with personnel with decades of experience in the banking industry and have over 300 employees. Also, at the time of this writing, Addosser Microfinance Bank currently serves over 84,000 customers across distinct business groups. Also, read more on microfinance banks in Nigeria here.

What services does Addosser Microfinance Bank offer?

Addosser Microfinance Bank offers majorly two services to customers. They are:

1. Loans:

Addosser loan services offer businesses and individuals a way to obtain money upfront and pay it back over time. This loan service is further divided into the following categories:

a. Retail and micro enterprise banking group:

Basically, the retail and micro enterprise banking group focuses on micro entrepreneurs and individuals who are in the economically poor category. It offers loans as a way out, to ease immediate financial responsibilities. The available loans under this group are:

Traders loan
Festival loan
Micro loan
Group loan
Lastly, widows umbrella

In addition, to find out details about each loan and their respective requirements, follow this link to their official website: https://addosser.com/services/retail-micro-enterprise-banking-group/

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b. Consumer banking group:

this group goes a step further from the economically poor to the low to middle income salary earners. It is only available to staff of reputable institutions. The available loans under this group are:

Salary advance
Pay my rent
Also, consumer swift lease
Back-2-School
Lastly, vacation loan

In addition, to find out details about each loan and their respective requirements, follow this link to their official website: https://addosser.com/services/consumer-banking-group/

2. Savings and deposit:

although they primarily focus on loan as a microfinance bank, Addosser also offers savings and deposit options like regular commercial banks. The available products under this service are the Addosser:

Regular savings account (ARSA)
Future target account (AFTA)
Also, Junior active savings account (AJASA)
Business savings account (ABSA)
Current account
Lastly, fixed deposit account

How can I apply for Addosser microfinance bank loan?

To apply for their loan, simply walk into any of their offices, and an agent would attend to you. However, it is important that you browse their website beforehand to know what you want and the requirements for it. Also, you can contact the bank ahead through any of the contacts means in the next subheading.

How can I contact Addosser Microfinance bank?

You can contact Addosser Microfinance bank through any of the following means:

Headquarters Address: 32 Lewis Street, Lagos Island, Lagos. To find the nearest branch to you, visit their official website (https://addosser.com) as it contains a list of all their branches.

Phone: +234-9087013749, +234-8140437926

Email: customercare@addosser.com

You can also use the request for a callback option that is available on the home page of their website. Simply visit https://addosser.com/ and supply the requested details. An agent would reach out to you soonest. Also, view the complete list of microfinance banks in Lagos, Nigeria.

Conclusion

Basically, Addosser Microfinance Bank offers a wide range of loan services that cover all your business and personal needs. Also, their loans come with flexible arrangements, depending on the type and amount of loan in question. Get started by visiting their official website or walking into any official outlets today.

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Lotus Bank – Everything you need to know

November 29, 2021 by Olamide Famuwagun

Lotus Bank is a customer-centric financial institution that offers financial services as well as professional customer service. The bank aims to provide an alternative to interest-based banking. Also, it aims to cover the needs of both the banked and the underbanked population in Nigeria. Here’s everything you need to know about Lotus Bank.

An overview of Lotus Bank

Lotus Bank is a privately held financial institution founded in 2007. The bank is a non-interest Nigerian bank noted for ethical banking and investing. A non-interest bank is a bank that operates on a zero interest rate.

Lotus bank specialises in business/commercial lending, professional custoer service, mortgage lending as well as full-service banking. Before 2015, Lotus bank was a full-service bank providing banking services to help individuals attain their financial goals. However, it became a subsidiary of Level One Bank in 2015. A Level One Bank is a full-service consumer and commercial bank that aims to strengthen communities and build quality relationships with clients.

What service does Lotus Bank offer?

Lotus Bank offers a wide range of services. They include:

1. Smart Banking

Basically, Lotus smart banking is USSD Banking. To opt for Smart Banking, simply dial *5045# and register on your phone. Thereafter, you can execute 90% of your transactions conveniently without airtime or data. Some important features of Smart banking include:

To check your balance enquiry, dial *5045*5*1#
For transfering money from Lotus to other banks, dial *5045*3*amount*account number#
Also, to buy airtime for yourself, dial *5045*amount#
Purchase airtime for others by dailing *5045*amount*phone number#
To buy data, dial *5045*2#
Lastly, to make a money transfer from Lotus to Lotus, dial *5045*amount*account number#

2. E-solution and services

The E-solution involves the electronic services that Lotus offers. They include:

a. Point of sale terminal:

With Lotus POS terminal, merchants are 100% safe and secure with their payment processing. Some of its features and benefits include:

It specialises in collections management services
You get instant value for every payment you make.
It reduces cash handling charges
Lotus POS eliminates the stress of clearing and confirming cheques.

What is the requirement to be eligible for Lotus POS?

To be eligible for Lotus POS, you must have a Lotus current or savings account. Basically, this means you have to open an account and actively bank with Lotus.

How can I apply for a Lotus POS?

To apply for a Lotus POS, follow the steps below:

Download the POS enrollment form from Lotus Bank official website, www.Lotusbank.com
Fill in your details on the enrollment form
Lastly, visit any branch near you to complete the process.

b. Merchant Payment/settlements

Merchant settlements are transactions the bank completes a day after the transaction date. Usually, Lotus bank attends to transactions you execute on Fridays and weekends on Monday.

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3. E-Naira

E-Naira is the official digital currency for Nigerians. The Central Bank of Nigeria issued it as a legal tender. It is the Naira in digital form and you can use it just like cash. The E-Naira uses block chain technology and has the same value as the Fiat Naira. This digital currency assures you a faster, secure and convenient means of transaction. The app will soon be available on the play store for Android and App Store for IOS devices.

4. PTA/BTA

otus bank provides you with foreign exchange for your foreign transactions. These transactions include your Personal and Business travels, payment for foreign education, medical expenses, and other invisible transactions. However, you can only use the PTA/BTA services for legitimate travel purposes.

What are the terms and conditions of the Lotus PTA/BTA service?

Below are the terms and conditions of the PTA/BTA service:

Your travel documents must be valid
You can only apply for this service once a quarter.
The bank prohibits application on behalf of a third party. Also, you must be 18 years and above to apply.
You have to return unused PTA/BTA to the bank within 2weeks of the initial purchase.
Lastly, you must not use fake documents to apply.

How can I apply for PTA/BTA?

To apply for this service, follow the steps below:

Go to Lotus website, www.lotusbank.com
Click on the ‘services’ toolbar
Click on PTA/BTA
Thereafter, fill the form with your details and submit it.

How can I open a Lotus Bank account?

To open a Lotus Bank account, follow the steps:

Login to Lotus website, www.lotusbank.com
Click on the ‘Become a customer’ toolbar
Lastly, Fill in and submit the online account opening form

Where can I download the Lotus Mobile Banking app?

You can download the Lotus Bank app on google play store for Android and App Store for IOS. With the app, you can make transactions seamlessly and conveniently. Also, you can open an account, make money transactions and pay bills on the app.

How can I contact Lotus Bank?

You can contact Lotus through any of the means below:

Phone Number: 0700 56887 2265, 0700 0100 0000

email address: support@lotusbank.com

Address: 30a, Adetokunbo Ademola Street, Victoria Island, Lagos.

Website: www.lotusbank.com

Conclusion

Lotus bank is a financial institution that combines ethics with commercial banking services. Also, the bank is known for having zero interest rates on transactions. They provide quick, easy, and seamless service to ensure maximum satisfaction for you.

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The Credit Bureau in Nigeria: Facts and Figures

November 25, 2021 by Olamide Famuwagun

In the late 1980s and the early 1990s, the banking industry experienced a wave of financial distress. Financial distress? This was largely typified by predatory debtors who hopped from one bank to the other; neglecting their obligations. We had persons who would abandon their debt obligations from Bank A, and proceed to obtain yet another, from Bank B. Following this, the Central Bank of Nigeria identified the need to establish a central database regulating this perversion.

This initiative was therefore implemented to obtain information from borrowers by financial institutions. By and by, the Credit Bureau of Nigeria was established. Its initiation was backed by a legislation Act that obligated banks and financial institutions to update lists of borrowers. Subsequently, this constituted profiling which determined the eligibility of intending borrowers.

The CBN granted credit bureau licenses to three private companies:

CRC Bureau Credit Limited
CR Services Credit Bureau PLC
XDS Credit Bureau Limited

These licenses were granted in 2008. They eventually formed what is now regarded as The Credit Bureau Association of Nigeria in 2012.

Functions of The Credit Bureau Association of Nigeria

According to Investopedia, a credit bureau is an agency that collects and researches individual credit information and sells it for a fee to creditors so they can decide on granting loans.

The Credit Bureau Association of Nigeria performs the following functions:

1. Maintain a Database of Borrowers from Financial Institutions:

Information obtained usually includes the contact details of individuals and companies. This also cuts across a history of previous loans obtained by the borrower. Information provided can further accommodate whether or not they were paid in time, as well as bankruptcy and court judgments.

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2. Central Storage of Collected Information

The Credit Bureau Association of Nigeria wields the capacity to store large bouts of data. Not only will this remain over a long period of time, but it is also in a safe condition. Ideally, there is no room for loss, theft, or alteration of files and data. This enables lending institutions to have long-term access to information.

3. Provide Credit Information Upon Request

The Credit Information Report is the major asset the Bureau sells to its members. When a lender requests Credit Information, the Bureau ensures it provides the report usually spanning a period of 3 years.

4. Eliminate Information Discrepancy

Recall our story of how The Bureau came into the limelight? Exactly, to manage the credibility of information disseminated to lenders by borrowers. In the absence of the Credit Bureaus, it is absolutely possible for Lagbaja to obtain loans from three different banks. What’s worse is that Lagbaja may end up carting away the funds.

5. Increased Access to Credit

Before the establishment of the Credit Bureau, gaining access to loans proved pretty cumbersome. In those days, you either had to own a megaton of valuable collateral or you knew someone that knew someone. You know how the drill goes.

Since the advent of Credit Bureaus, however, it is relatively easier to access loans. The Bureau only provides a credit information report. Isn’t that awesome? Ideally, your footwear does not have to be pals with the banking hall before you can get a loan.

How Do I Check My Credit Score?

Checking your credit score is pretty easy to pull through. The Credit Bureau Association of Nigeria offers a ‘Self Enquiry’ option to check your credit score. This service is absolutely free, however, you can only access your report once a year. To do this, you can simply contact The Bureau and sign up for the service via email.

Like we established earlier, your credit score encompasses details of your credit activities across all sectors of the economy. It shows a history of loans a person has secured. And more importantly, it is a first step in owning your financial game. This is because many do not understand the gravity of the credit score as it plays a pivotal role in the acceptance or denial of your loan.

What Can Affect Your Credit Score?

Did you obtain a loan and it took you forever to refund? This can ultimately decrease the rank of your credit score. Payment history is the protagonist in the thriller movie that tries to rub your authority in the mud. Lenders need the assurance that you can refund the loan in the nearest future. You don’t want to mess that up.

Additionally, your level of debt matters. Having too much debt can easily affect your credit score. When you resolve them, however, your credit score tends to increase.

Conclusion

The credit score plays an important role in the lending industry. Getting your facts and figures right helps put you on the right track. It is ideal that you first gain a grasp of your credit score before you apply for a loan. This helps to gauge your expectations, as well as plan towards the feasibility of acquiring a loan.

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What is Loan Syndication – The Processes of Loan Syndication

November 22, 2021 by Olamide Famuwagun

Loan syndication started when the size of individual loans grew bigger. This made banks deem it fit to allow other lenders to partake in the risks. Basically, a group of lenders will finance any individual who needs a considerable amount of loan. This group of lenders comes together to form a ‘syndicate’. A syndicate is a term that describes any group that comes together to conduct a business. Hence, the term ‘loan syndication’ came into existence. Here’s an overview of everything you need to know about loan syndication.

What is loan syndication?

Loan syndication is the process whereby various lenders unite to finance various portions of a loan for a borrower. Usually, it occurs when a borrower needs an amount too big for one lender to provide. This makes it necessary for various lenders to unite and form a syndicate.

Basically, lenders opt for a loan syndication process when a borrower requires huge capital for business reasons. These reasons could either be for mergers, project financing, or buyouts. Each lender’s right depends on how much they contribute to the total loan amount.

As the borrower, you can estimate the sum to repay using a loan calculator.

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What are the processes of loan syndication?

The borrower initiates the loan syndication process with an invitation for bids. The process starts by listing out the loan requirements, terms, currency as well as tenor. Thereafter, they mandate a bank or financial institution to take the loan syndication responsibility. This bank will act as a manager on behalf of others members of the syndicate. Additionally, they check the financial history of other stakeholders before starting the syndication process. Below are the three stages of the loan syndication process:

1. The pre-mandate stage

The prospective borrower starts this stage. The borrower starts by contacting a single bank or requesting competitive bids from various banks. Thereafter, the borrower selects and mandates a lead bank to take charge of the syndication process. The lead bank will then commence the appraisal process. The appraisal process involves identifying the borrower’s needs, designing a loan structure, and developing a credit proposal.

2. Placing the loan and Disbursement stage

This stage involves the lead bank selling the loan to prospective banks in the marketplace. Basically, this means that the lead bank prepares a document called Information Memorandum. This document contains the transaction terms, executive summary, investment consideration, financial structure, and risk mitigation. After this, they prepare legal documentation and invite selected banks to form the syndicate. If prospective lenders raise any concern, the lead banks negotiate it with the borrower. Once the members of the syndicate are complete, they sign a confidentiality agreement. Thereafter, the syndicate discusses the loan in phases as written in the contract.

Usually, the loan is put into a ‘no-lien’ account. A no-lien account is an account created solely to disburse loans. The bank closely monitors the activity of this account including withdrawals. This is to ensure that the borrower uses the funds only for their intended purpose.

3. The post closure stage

This stage involves monitoring. It is mainly done through an Escrow account. An escrow account is an account that is created for the borrower to deposit its revenue. An agent prioritizes the repayment of loans first before payment to any third party. Also, the agent is responsible for handling the operations of the loan facility daily.

Basically, these three stages sum up the process of loan syndication

Bottom line

Loan syndication is a process put in place majorly to finance huge borrowings of capital-intensive projects. Also, it saves the borrower’s time and effort. This is because the lead bank does the major work. Once the borrower selects a lead bank, they oversee the complete syndication process.

Equated Monthly Installment (EMI) In Loans – Everything you need to know

November 18, 2021 by Olamide Famuwagun

If you borrow loans regularly, the term ‘EMI’ may be familiar to you. An Equated monthly installment plan helps you to know the amount you need to pay per month to offset a loan. Also, it helps to make your personal budgeting process easier. This is because you know the exact amount you need to put aside every month to pay off your loan. Here’s an extensive look at what EMI means and everything you need to know about it.

What is EMI?

Equated monthly installment (EMI) is a specific amount of money a borrower pays to a lender on a monthly basis. Usually, EMI includes both the loan principal and interest amounts. The borrower pays this sum every month in order to offset the loan at the end of the loan tenor.

Basically, EMI allows you to have peace of mind since you will have an idea of the amount you need to pay beforehand. This is very important especially for those obtaining loans as a salary earner.

How does Equated monthly installment (EMI) work?

EMIs are different from variable payment plans. In Variable payment plans, the borrower can remit higher amounts if he or she decides to. However, in Equated monthly investment plans, borrowers can only pay a fixed amount every month. EMI gives a borrower insight into how payments can be spread equally across the loan tenor. Additionally, it helps lenders to look forward to a regular stream of income from the loan interest.

What is the formula for calculating EMI?

Basically, there are two methods used for calculating EMI. They include:

1. The flat-rate formula

You can calculate the flat rate by adding the principal loan and the loan interest. Thereafter, divide the result by the number of months multiplied by the number of periods. Under this method, the interest levy is always on the total loan amount irrespective of the principal amount you pay. The flat rate formula is:

EMI = (Principal + Interest)/Number of months * number of periods

2. Reducing-balance formula

The reducing balance favours the borrower more because it lowers the overall interest payment. Under this method, the interest levy is always on the remaining balance of the loan after you pay a specific amount of principal. Therefore, your loan interest keeps reducing every month. The formula for calculating reducing balance is:

EMI = P * [( r * (1 + r)^n)) / ((1 + r)^n – 1)]

Here, P is the Principal amount you borrowed, r is your Periodic monthly interest rate and n is your Total number of monthly payments.

Basically, both methods take into consideration the loan principal, interest rate, and the terms of the loan. Calculating EMI somewhat works like a loan calculator.

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What are the factors affecting EMI?

Your equated monthly investment depends on some factors. They include:

1. The loan amount

The loan amount, also known as the principal amount, is the biggest factor of your EMI. It is the total amount of money you borrow. The bigger your loan amount, the bigger your EMI.

2. The interest rate

Your loan interest rate is another determinant of your EMI. Your EMI is directly proportional to your loan interest rate. Basically, your interest rate depends on factors like your income, credit history as well as your repayment capacity.

3. The loan tenor

Your loan tenor is the number of years you are given to repay the loan. The longer your loan tenor, the lower your EMI, and a shorter tenor results in a higher EMI. However, a longer loan tenure means a higher interest rate.

These three factors help you to determine the amount of your Equated monthly installment.

Closing thoughts

The importance of Equated monthly installment cannot be underestimated. It gives you a fixed figure that will help you offset your loan at the end of the loan tenor. This makes the loan repayment method seamless. Also, you will be able to make an accurate financial budget since your loan repayment amount is fixed.

For a lender, it gives you a fixed stream of income to look forward to every month. Without a doubt, the EMI plan is helpful.

Need a loan? Kindly check out this platform that allows you to compare loans from several lenders in minutes. This would help you make the best decision for you.

How to get Loan for non salary earners

November 15, 2021 by Olamide Famuwagun

Due to the present economic situation of Nigeria, accessing quick loans has become inevitable especially for non salary earners. Basically, circumstances have made people long for obtaining simple and quick loans. Fortunately, some fintech companies have made it possible for you to get a fast loan in Nigeria easily. Here’s everything you need to know about loans for non salary earners.

Quick loans for non salary earners in Nigeria

Below are 5 trusted platforms where non salary earners can access loans in Nigeria

1. Carbon

Carbon is a great platform for you to obtain a quick loan in Nigeria. Basically, you can access loans here without collateral. With Carbon, you can access up to N1,000,000 and receive a cashback in interest paid if you repay your loan on time.

How can I get a loan on Carbon?

To get a loan on Carbon, follow the steps below:

Download the Carbon app from Google playstore for android or the App Store for iOS.
Register on Carbon app and apply for a loan.
Thereafter, you will receive a notification that lets you know how much you can access and if Carbon approves your loan.
Once Carbon approves your loan, you will receive the funds in your account.

2. Branch

Branch is another fintech company that offers quick loans to you easily. Presently, they have offices in 4 countries including Nigeria. To access a loan on Branch as a non salary earner, you can register with other details. They include your bank account number, BVN, your Facebook account as well as your phone Nigeria. The amount you can get ranges from N2,000 to N500,000. Also, if you repay your loans on time, then your loan limit will increase.

Get a loan up to N100,000 at the best affordable rates in Nigeria

How can I get a loan on Branch?

You can get a loan on Branch by following the steps below:

First, download the Branch app from Google playstore for Android or the Appstore for IOS.
Signup on the Branch app.
Click on the loan toolbar and input your phone number, bank details, and other personal details.

Thereafter, you will be able to view available loan offers and apply for them.

3. Aella Credit

Aella Credit is known for offering loans to people without a salary. With the Aella app, you can obtain loans easily and conveniently. Also, you can pay bills, get insurance and make investments with the app. They offer loans that range from N1,500 to N1,000,000 with a repayment period within 1-3 months.

How can I get a loan on Aella Credit?

To get a loan on Aella, follow the steps below:

Download the Aella app on Google playstore for android or the Appstore for IOS.
Sign up on the app and input personal details.
Apply for a loan. You will receive a notification that shows if your application has been approved.
Lastly, your account will be credited 5 minutes after your application is successful l.

4. Sokash

Sokash is a trusted loan platform used to obtain loans for short or long term needs. With Sokash, you can get a loan of up to N5,000,000 in just 2 hours.

How can I get a loan from Sokash?

To get a loan on Sokash, follow the steps below:

Download the SoKash app
Thereafter, sign up and verify your account using your BVN.
Sokash will automatically determine how much loan you are eligible to borrow.
Lastly, you can start applying for a loan once you have seen that you are eligible to obtain a loan.

5. Fairmoney

Fair money is a digital platform that provides collateral-free personal loans. With Fairmoney, you can access up to N1,000,000 in loans. Also, you can pay your bills on the platform and enjoy 100 free fund transfers. Their repayment period ranges from 61 days to 18 months. If you repay your loan early, you will get a 90% interest discount.

How can I get a loan on Fair money?

To get a loan on Fair money, follow the steps below:

Download the Fairmoney app on Google play store.
Sign up on the app and input your personal details.
Thereafter, apply for a loan.
If you are eligible, you will receive instant funds to your account once your application is approved.

Bottom line

For a non salary earner, accessing a loan is now easy, You can access quick and instant loans from any of the platforms mentioned above. These platforms are easy to access and seamless. Expect your account to get funded within minutes after your loan is approved. Give any of them a try today

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