- More and more Nigerian banks are offering various services for customers to get fast loans
- Loans are offered without clients needing to provide collateral, which should be standard practice
- Union Bank and First Bank are among the largest Nigerian banks to provide these loans in response to CBN’s drive to make more finance available for businesses and households.
Nigerian banks are offering unsecured loans, which do not require collateral, as demand increases among small and medium enterprises (SMEs) and households.
The CBN’s recent loan-to-deposit ratio (LDR) policy has caused this rise, which requires banks to increase actual lending to the sector to improved economic growth.
The CBN Governor, Godwin Emefiele, had recently taken tough decisions to address the challenges that are hampering the growth of the real sector and, more generally, the Nigerian economy.
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The CBN launched the LDR on July 3, 2019, ordering banks to now maintain 60% from September 30, 2019.
CBN’s latest consumer credit report shows demand for credit card unsecured loans rose to 9.4 index points in the fourth quarter (Q4) of 2020 from 4.9 points in the first. quarter of the same year, BusinessDay reports.
Banks that offer unsecured loans, as seen on their websites:
- Access Bank, which offers up to N10 million unsecured to SMEs;
- Loyalty bank (N10m)
- First Bank (N10m)
- GT Bank (N30m),
- Polaris bench (N10m)
- Standard Chartered Bank (N20m)
- Union Bank (50 million naira)
- Zenith bench (N10m)
For example, First Bank of Nigeria Limited has designed various salary products for Nigerian workers with home salary accounts.
According to the bank, its collateral-free loan offerings are designed to help people unlock their existing wealth.
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First Bank owner Femi Otedola earns N400m in a day
Legit.ng reported that billionaire businessman Femi Otedola became N400 million richer in a single day, thanks to his controlling shares in First Bank Holding Limited.
Otedola earned the amount in a single session on the Nigerian Exchange Limited, as investors bought back the shares of major banks after the trading day.
The serial investor and Chairman of Geredu Power Plant currently owns the majority stake in First Bank Holdings Plc. His shares in Nigeria’s leading bank amount to 2.7 billion total shares, representing 210 billion direct equity and 2.5 billion issued shares of the company.