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| First Bank. |
Kayode Tokede examines ways monthly salary earners with FirstBank accounts can benefit from the lender’s numerous loans initiatives amid harsh economy.
In time past, monthly income earners – especially bank customers – were unable to have quick access to personal loans to meet their immediate financial needs due to the stringent conditions.
The Central Bank of Nigeria (CBN) had introduced the Know-Your-Customer (KYC), among other policies, to enhance financial inclusion and reduce the incidence of related identity fraud in the banking sector. These have enhanced the capabilities of banks to grant soft loans to customers.
With
these, monthly income earners have access to loans every month with an
attractive interest rate, below the stipulated limit, which has eased customers
with the opportunity to access soft loans (Personal loans) and meet urgent
needs.
Amid
double-digit inflation rate, among other operating headwinds, meeting demands
of owning a dream car, house, and travel for vacation become challenges as
daily expenses inflate.
Personal loans are borrowed money that can be used for large purchases, debt
consolidation, emergency expenses, and much more.
These
loans are paid back within the period advised in the terms and conditions of
the facility. The payback period can be within a month, a couple of months or a
few years.
Salary
accounts can do more than just receive monthly pay; they have inherent wealth
that can be unlocked to help customers achieve dreams as they advance in their
careers and be on top of ‘money demanding’ situations at home and work.
Over
the years, First Bank of Nigeria Limited has adopted the strategy of creating
opportunities for salary accounts holders to unlock the wealth in their accounts
with numerous initiatives introduced to bridge the gap in the access of quick
loans.
The
bank’s salary accounts offer zero opening balance, zero minimum daily operating
balance, zero account maintenance charge, First Free Verve or Master Card
Issuance and access to consumer loans.
The
bank also introduced Personal Loan Against Salary (PLAS), First Advance, and
FirstCredit Salary Account designed to meet personal loans demands.
With
FirstBank’s PLAS, the salary account holder can access personal loans up to N30
million to pursue capital projects, carry out renovation works on their
properties, acquire assets, give their children the best education, and other
fulfilling accomplishments. PLAS offers flexible options to top-up and
refinance existing loans at competitive rates.
The
product is designed to also help customers meet immediate personal financial
obligations such as rent renewals, vacation trips to choice destinations and
pay for professional examinations to take their career to the next level. With
PLAS, Nigerian salary earners need to be assured of a funding partner in
FirstBank to fulfil their dreams. PLAS is available to employees whose salary
accounts are domiciled with FirstBank.
FirstAdvance
is a digital lending solution designed to offer convenient and easy access to
cash for payroll customers awaiting payment of their salaries.
The
product is meant for salary earners whose accounts are domiciled with FirstBank
and have received regular salaries in the last six months or more.
The maximum amount accessible is N500,000.00, subject to 50 percent of the net
average three months salary, whichever is lower.
The
eligible amount is calculated after deducting all other loan obligations to the
Bank. This product can be accessed via the Bank’s leading digital channels:
FirstMobile and USSD.
The
features of FirstAdvance include: Salary account must be domiciled with
FirstBank, loan amount of up to 50 per cent of net monthly income, the tenor is
30 days or next payday [whichever comes first]. Repayment is taken immediately
salary is received, while a lien is placed on the unfunded account, among
others
The bank also has FirstCredit, a product designed to provide customers with a
quick and simple loan to fund their immediate needs.
FirstCredit
loans can be accessed from anywhere without visiting the Bank. It involved no
documentation or collateral required and all the customer need is a mobile
phone or tablet.
FirstCredit
is easy and convenient as it promotes immediate access to loans to meet needs.
It facilitates quick loan requests and disbursal with no physical documentation
required nor collateral required. Neither are there hidden charges nor fees.
Its
features include: the customer’s account must have been operational in
FirstBank for at least six months; linkage of the account to a valid BVN is a
requirement; primarily details of the account, including phone number and
residential address, must be correctly updated and the customer must have a
positive credit history and score with Credit Bureaus. The maximum loan amount
is N300,000
Others
are loan tenor: of 30 days, an interest rate of 10 per cent flat and insurance
fee is also taken upfront on loan disbursal. To apply for FirstCredit,
customers are to Dial *894#, select Loans, and follow the instructions.
Culled
from ThisDay.
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