Salary Based Credit Facilities

SALARY BASED CREDIT FACILITIES

BACKGROUND/INTRODUCTION

SALARY BASED CREDIT FACILITIES

This product paper proposes AMMFB credit products specifically designed to meet the financing needs of the salary earners working in formal organisations like Government MDAs, Private organisations and schools as well as AMMFB. The products are tailored to offer convenient credit facilities to the income capacities of customers and help them achieve personal goals that would have taken them longer to achieve and in line with the vision of the Bank to be the foremost Microfinance Bank in Oyo State and beyond.

PRODUCT FEATURES

OBJECTIVES

PRODUCT BENEFITS

To Customer

Convenient and prompt access to credit funding for business expansion.
Sense of belonging
Flexible repayment structure based on business dynamics
Low interest rates and charges
Mobile Banking Access for convenient transactions and account monitoring.
Availability of expert financial advisory services.

PRODUCT BENEFITS

To Bank

Increase in Client size.
Increase in the Bank’s Credit Risk Assets.
Increase in Bank’s earnings from fee income and interest spread.
Fulfilment of social mission and facilitating social responsibility while increasing visibility of the Bank within the communities.

ELIGIBILITY

A staff of the Bank or an active adult (18 – 60 years) who is gainfully employed and whose salary is domiciled with the Bank or whose employer the Bank has a direct deduction agreement in force.
Customer must have an active relationship (current account) with the Bank for a minimum of one month to verify salary domiciliation or direct debit agreement.
Employment with a recognized government MDA or corporate organisation.

PRICING

LOAN LIMIT:

PRODUCT	LOAN LIMIT (N)	PROC. FEE	INTEREST PER MONTH	TENOR IN MONTHS	CREDIT LIFE INSURANCE	CREDIT SEARCH (N)
AMSL	500,000.00 (Subject to ITI of 35%)	3.5%	3%	2 – 12	1%	500.00
AMSSF	1,000,000.00 (Subject to ITI of 35%)	0%	0.42% (5% per annum)	2-24	0.6%	500
AMSALAD	200,000 (Subject to ITI of 50%)	3%	3%	1	1%	NIL

PLACE

DISTRIBUTION CHANNEL: Bank’s premises, Work place and online

PROMOTION

Credit officers and Staff of the Bank will promote and sell the products as part of the Bank’s flagship products.
Continuous engagement and enlightenment of various trade unions and staff associations, agencies executives and company directors.
Distribution of graphically detailed fliers to create a vivid depiction of product features and benefits.
Market Storms and Campaigns to the different market communities and commercial areas around our primary market.

PEOPLE

PROCESSES

The products target individual salary earners in recognized MDAs and corporate organisations.
Applicant must have opened a transactional account (current) and operated it for minimum of one month with the exception being staff of organisations that are marketed as a group.
A duly completed loan application form and execution of guarantor forms by two capable guarantors who must be of unquestionable character (preferably colleagues at work).
Letter of Introduction (including domiciliation or payroll deduction pledge) from employer.
Applicant’s and guarantors’ valid means of ID (National ID, Driver’s License, Voter’s card and International Passport) with one recent passport photograph each.
Customer’s most recent pay slip/staff payment schedule or three months statement of account from previous Bank of domiciliation.
SECURITY: Two Guarantors with verified capacity and character (adequate for AMBL)
The basic KYC verification (update) shall be carried out on the customer (employment verification) and two guarantors.
Requests shall be subjected to maximum of 50% ITI (Installment To Income) or 70% DSR (Debt Service Ratio) for AMSL, AMSSF and 50% ITI for AMSALAD.
Statement of Bank account may be required as applicable.

APPRAISAL CYCLE

Credit officers shall profile and guide customers through necessary documentations and initial assessments.
Complete applications and documents shall be submitted for further inspection and credit analysis through the team lead/credit analyst under the supervision and coordination of the Head of Marketing and Credit.
The application will then be considered for approval by the Management Credit Committee (Head, Credit and Marketing, Head, Internal Audit/Control and the Managing Director).
Loan amounts above N500,000.00 shall be recommended for the consideration and Approval of the Board Credit Committee (BCC).
Turn Around Time (TAT) for any application shall not exceed 10 days.