“This scheme creates an opportunity for prospective and existing tenants who belong to the working class and self-employed professionals to access rent finance and pay on a monthly basis over a maximum period of two years”, said Abubkakar Suleiman.
He spoke at the media launching of the scheme on Wednesday at the Bank’s head office in Lagos. He said, “As we are all aware, rent in Lagos is always paid in advance, either for a year or two. For some tenants, it is difficult to raise the rent amount when it is due. The Rent-a-Month scheme enables eligible individuals solve their rent problem by taking a facility for the tenor of the rent, which they can now repay on a monthly basis, thus making house rent convenient and affordable.”
Sterling Bank’s Group Head, Consumer Lending, Kike Kuponiyo said the product was introduced in conjunction with RSL Derivatives Global Services Limited, a risk financial consulting firm which facilitates the availability of these facilities to eligible customers, while indemnifying the bank against the risk of default.
RSL Derivatives, she said, is also expected to pre-qualify interested customers using agreed standards, to ensure that all recommended customers meet the bank’s credit risk criteria.
She said credit relating to the product is processed swiftly and allows quick approval on receipt of full documentation, convenient and flexible repayment pattern as well as concessionary pricing. Also, the loan is structured in a way that the bank does not exceed 33 per cent of the borrower’s income at all times.
Kuponiyo said the bank is starting the product in Lagos, and will extend it to other markets in the future. According to her, the bank will charge an interest rate that is in tandem with the borrower’s perceived risk level, adding that such rates will always be competitive and within the consumer lending rate.