One of Nigeria’s top banks, UBA PLC, has increased its loan offerings for consumers and Small and Medium Enterprises (SMEs) across Africa to meet its target of having consumer loans account for 25 per cent of total loan portfolio.
The Group Head (Consumer Lending) Anant Rao, disclosed this while briefing journalists at a virtual conference on Wednesday.
Rao explained that the bank has set a target of 25 per cent for consumer loans as the bank’s loan portfolio hits N2.733 trillion at the end of March, 2021.
UBA had offered N178 billion loans in the first three months of the year, beating seven other big banks in Nigeria. The sum raised its total loan portfolio to N2.733 trillion from initial N2.55 trillion.
He said the need to raise consumer loans from its current level of less than 10 per cent accounted for the reason the bank introduced different types of loans for both consumers and SMEs while deploying technology and and other infrastructures which help simplify the process. Rao said the bank was ambitious on lending which is the reason it was resetting its physical operations, using technology and experts.
He said: “We have built infrastructures from sale to collection. We understand the market and we know what to do. We look at segments and micro-segments of customers to achieve this goal.”
He revealed that the bank was moving from salary customers to non-salary customers, drawing insights from data to understand consumer behaviour. He added that the bank uses technology and credit rating algorithm to evaluate applicants for loan which makes it possible to determine qualification for loan within three minutes.
While giving an insight to the bank’s array of loan products changing the dynamics in the industry, Rao spoke about some of the products and intrinsic benefits to customers as he said Click Credit is one of the bank’s vibrant facility which seamlessly supports customers.
His words: “It is an automated loan with no form of documentation, paperwork or queue. Customers can get up to N1 million instantly and pay through a period of 12 months. This loan product of UBA is known for speed, efficiency and competitive rate. This product is available to all salaried customers. Customers can apply by dialling *919*28#, sending “Loan” to Leo and clicking on the “Click Credit” feature on the mobile app or Internet banking.”
According to him, no document was required to access the loans. There is also the UBA Structured Loans, Personal Loans, Auto Loans and Asset Finance Mortgage.
As for Personal Loans, Anant said: “It is a product designed to aid the finance of the daily needs of our customers. Available to employees of enlisted counter-parties whose salaries and other emoluments are being paid through UBA or are willing to transfer their accounts to UBA.
“Here, required documents include letter of introduction and awareness from employer, copy of customer’s staff ID, copy of customer’s Valid ID, duly accepted offer letter and duly filled loan application form.’’
He explained that Asset Finance was designed to facilitate the purchase of physical assets ranging from household appliances to alternative power solutions and devices by our retail customers through approved partnering vendors, giving them the convenience to pay over a period. Customers must be employees of bank’s approved counterparts.
The bank listed the required documents as letter of introduction and awareness from employer, copy of customer’s staff ID, copy of a customer’s valid ID, proforma invoice in UBA/customer’s name and duly filled loan application form as well as accepted offer letter.
UBA Mortgage Loan is a product designed to part-finance the acquisition of residential real estate by salary earners whose employers are listed on the bank’s approved counterpart list.
“The product is targeted at High Net Worth Individuals (HNIs) with predictable and sustainable income. The product is to enable customers buy fully developed properties or draw equity from their home as loans for specific purposes,” Rao said.
The UBA Personal Loan – Direct is a variant of UBA Personal Loan product targeted at civil servants whose salaries are not domiciled with UBA. The product is designed to offer personal loans to civil servants who have difficulties in changing their salary accounts from other banks to UBA.
This loan is available to Federal civil servants that are enrolled on IPPIS platform, state civil servants (this will be limited to states whose salaries are managed by ICT firm). Required documents include duly filled loan application form, a copy of customer’s staff ID, a copy of customer’s valid ID and customer’s instruction letter.
The UBA FX Cash Backed Loan is a term loan designed for Nigerians that operate FX accounts with the bank. Customers can get up to N10 million for investment or to meet the financial needs of relatives in Nigeria.
The UBA Working Capital loan offers up to N50 million to help business owners meet their cash flow needs and expand their business. A flexible collateral cover will be required depending on the loan amount and the nature of customer’s business.
This loan product is targeted at customers with verifiable credit net worth whose cash flow patterns meet the requirement for lending and other structured groups/business clusters
There are also the UBA Asset Finance for SMEs, the UBA School Loans and the UBA Health Loan.
“It is a medium-to-long term facility aimed at meeting working capital, asset and mortgage needs of registered privately-owned schools. The bouquet comprises a four-month time loan, a three-year asset finance loan and a 10-year mortgage loan.” Rao said.
According to him, the UBA Health Loan is designed to provide financing to registered hospitals, pharmacies, medical laboratories, diagnostic centres, optical and dental clinics for their business expansion/upgrade, equipment purchase as well and support their cash flow needs.”