Why do I get many charges from my bank?
Ans: Most charges by the banks are
legal and regulated by CBN. They are tied to the actual bank product or service you
subscribe to. However, knowing what the different charges represent enables you
to know the services and products to activate and de-activate. Having said this
notwithstanding, banks could make mistakes in charges or debits passed to your
account sometimes which is the reason why you need to always know what the
different charges are at every given time.
Are all the charges on my account for the bank?
Ans: Not all charges made by the bank
go to the bank. Some of them are either CBN charges, or Government charges
depending on what charge it is. For example the ₦50 duty stamp charge on your account goes to the CBN from which the necessary agency is credited, VAT charges are for the Federal Government (FIRS) and are remitted
to them likewise some other charges. The bank only serves as a channel through which most of these charges are passed.
Why can’t I easily get a loan from the
bank?
Ans: This is because the money you’re
seeking from the bank is not yours. They are funds of other customers being
gathered to be granted to you as loan and as a result, due process must be
taken to ensure that the funds are not given to wrong people.
When do I qualify to get a loan from my
bank?
Ans: Firstly, after you might have transacted
meaningfully with the bank for a period of time (usually a minimum of 6 months).
Also, when you have been able to give the bank a tangible reason for seeking
the loan. Playing the role of financial advisory, the bank is supposed to be
able to weigh the purpose for which you are seeking the loan and be convinced
that the business will be able to re-pay the loan. This is the reason why banks advise for
full disclosure and straightforwardness during a loan request process.
Is it possible to get a loan without
collateral?
Ans: Banks do not give loans because of
collateral, yet they do not give loans without collateral. The major source of
repayment of any bank loan should be from the primary business in which the
loan is intended. However, collateral are supposed to be a secondary way out in
cases when the loan cannot be recovered from the direct business/purpose of the
loan.
Why is the interest rate for loans usually
too high?
Ans: Most times, the interest rate
placed by banks on their loan are usually determined by the Monetary
Policy Rate (MPR) and the Cash Reserve Ratio directed by CBN. The MPR is the
interest rate at which banks get loans from CBN and as such, the higher the
MPR, the higher the interest rate banks will place to grant loans to their
customers. More also, the Cash Reserve Ratio (CRR) is the percentage of a bank’s
total deposit which they are supposed to leave with CBN as reserves. The higher
this ratio, the more difficult it will be for banks to further disburse loans
to their customers.
Why does interest rates differ with banks?
Ans: It is business and strategy. A
bank might choose to play high in certain types of loans while they play low in
others. More so, it could just be a tactic to increase their asset for that
period.
Why does my bank never grant loans?
Ans: They do. May
be not to you or to your class of account holders. Again, it is strategy. They choose
the field in which they want to play.
More Answers to
your Frequently Asked Questions to come soon…
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