Short term loan: GTBank slashes Quick Credit rate to 1.33%. The Guaranty Trust Bank Plc (www.gtbank.com) rate on its Quick Credit retail loans has been slashed.
The short term personal loans rate is now set at 1.33% per month.
Previously, GTBank interest rate on the Quick Credit designed for salary and non-salary earners that meet credit criteria was 1.75%.
By calculation, the effective interest rate on this retail loan translates to 16% per annum.
This means that apart from the fact that customers would be excluded from management fees, the loan comes cheaper compare to some business loans.
However, the loan can only be accessed by customers with salary account, or self-employed individuals.
Meanwhile, MarketForces gathered from the bank that the minimum loan accessible by its customers is pegged at N10, 000.
However, the maximum amount that qualified customers, those with salary accounts domiciled with the bank is N5 million.
But, the maximum that non-salary earners or self-employed clients can take is N1 million.
This short term credit is one of the financial products that GTBank is offering to its customers at the retail end.
In terms of tenor, being a short term retail credits, the loan can be taken for 6-12 months.
Salary earners that have their accounts domicile with the bank can access the loans through unstructured supplementary service data (USSD) code.
The caveat is that GTBank Quick Credit would not be granted to customers with history of dud cheque.
Also, customers are expected to maintain minimum monthly lodgement of N20,000 or earn minimum monthly net salary of N10,000 with a satisfactory credit report.
At the time of application, it is important that customer must not have an unpaid obligations.
The term and condition also demands that customer must be willing to covenant and warrant that the Central Bank of Nigeria shall have power to set-off the customers indebtedness under this loan agreement from all such monies and funds standing to his/her credit/benefit.
MarketForces gathered that this will be in any and all such accounts or from any other financial assets belonging to the applicant and in the custody of any such bank.
By Gbenga Anisere