Zenith Bank Charges Female Entrepreneurs 9% on SMEs Credit
On maximum of N10 million that can be accessed under its Z-Woman small and medium scale entrepreneurs’ loan, Zenith Bank total charge calculated by MarketForces is 10%.
By design, Z-Woman is a single digit loan product for female owned businesses for all sectors primarily geared toward growing our SME sub-sector and diversifying our customer base.
The loan is for eligible purposes as determined by Zenith Bank Plc.
The interest rate on Z-woman is pegged at 9% but customers are expected to pay 1% as management fee at the time of application.
It is worthy to state that this loan is not for everybody but design to encourage women in active businesses.
MarketForces gathered that the focus is to support entrepreneurs in the Beauty/Style, Confectionery, Fitness, Agriculture & Others sectors.
Meanwhile, it is not enough for a woman to have a business, she must meet ownership criteria in case of joint businesses.
Female owned businesses with shareholding of 55% and above are qualified to apply to Zenith bank for this loan.
This loan must however be repaid within 24 months by liquidating both interest rate and principal on monthly or quarterly basis.
What this means is that, each month customers would pay part of the loan plus interest on reducing balance basis.
Both Zenith Bank and the customers would agree on this, and customers account would be debited for the agreed sum.
This collateral free loan demands that customers should be willing to accept Biometric Verification Number (BVN) covenant with Zenith Bank.
Also, the beneficiary customers must be willing to give personal guarantee on the loans, along with credit insurance policy.
Zenith Bank demands for positive credit checks to lower its risk along with the company’s profile.
MarketForces gathered that customers can access N10 million maximum for 12 to 24 months.
Repayment of interest rate and principal is on monthly or quarterly basis in line with customer’s cash flow from sales/collections.
The loan can be requested if you want to expand your business Expansion, for working capital and perhaps to purchase raw materials as well as infrastructure upgrades.