Nigeria: Bank PHB offers instant loans to customers

These are indeed happy times for customers of Bank PHB across the country. Barely a few months after the Bank unveiled its product that allows Nigerians to own brand new Peugeot cars without making any initial down payment, the bank has again unfolded a product that will ultimately improve the financial well being of its teeming customers. Known as SALAD INSTANTA (Instant Salary overdraft) the product, which was launched yesterday will give customers easy source of funds in times of emergency. The new financial option is available to all salary account holders of Bank PHB.

With the product, salary account holders of the bank are allowed an instant, hassle free overdraft facility of up to 50 percent of their net monthly salary in any month they run into financial challenges or need extra cash to take advantage of new opportunities.

The President of the Nigeria Labour Congress Comrade Abdulwaheed Ibrahim Omar who graced the occasion commended the initiative of fashioning such a workers-friendly, which he said could not have come at a more auspicious time for Nigerian workers.

Explaining how the product works, Olu Akanmu, Group Head retail Banking said; “Accessing this facility is very simple and straight forward. All you do when opening an account is to indicate on the account opening forms that you want this financial option in operating your account. It will immediately entitle you to this facility. When you want to take advantage of the facility, you do not need to fill any forms. Just walk into the nearest branch of Bank PHB and write your cheque of up to 50 percent of your net monthly salary. It is that simple,as he said.

The beauty of the product, according to observers in the Nigerian banking industry is the fact that it has completely eliminated the documentation process which usually discourages most hard working Nigerians from accessing bank loans. “It has simplified the process so much that now almost every working Nigerian will not have to complain of being cash strapped in any case of emergency or opportunity. It is as easy as withdrawing money from your bank account's said an observer at the launch of the product.

According to Olu Akanmu, the instant loan is payable from the customers next salary and is available as a revolving loan facility over a 12 month period. Interest rates are also applied at the current commercial rate.

This product is another first from the stable of Bank PHB, which is fast emerging as Nigeria's leader in retail banking. It will be recalled that Bank PHB already has a product named SALAD, which advances loans to salary account holders with the Bank. With SALAD, customers can borrow up to 250 percent of their basic pay and repay over a period of three to six months. SALAD INSTANTA is only a variation of the original product and does not cancel the former. The introduction of these products has greatly reduced the financial pressure on families during periods of financial emergency.

Bank PHB also has a variety of consumer finance products that allow customers to buy different consumer items ranging from household goods to investment products like shares in quoted companies. With consumer loans from Bank PHB, customers can buy household items or invest in quoted companies and make repayments over a period of time depending on their income stream.

Bank PHB is one of Nigeria's fastest growing banks with total assets in excess of N480 billion and profit before tax in excess of N10 billion. The bank's latest half year results for the period ended December 2008 showed it had already surpassed its full year historical 2008 earning and profit figures. Bank PHB recently concluded a highly successful N85 billion Initial Public Offer (IPO) at N17 per share with analysts projecting its 12-month share price at N40 per share.

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