Q. What is the maximum tenor of this facility?
A. it’s a 12 month revolving overdraft.
Q. What is the minimum tenor of this facility?
A. 3 months
Q. What is the maximum amount a school can get?
A. For schools that have been in existence for 3 years and above, the maximum amount they can apply for is N10 million. However, for schools that have been in existence for less than 3 years, the maximum amount they can apply for is N5 million.
Q. What is the minimum amount a school can get?
A. The minimum a school can apply for is N1 million regardless the number of years of existence.
Q. What repayment method will be adopted?
A. The school can decide to pay monthly, quarterly or biannually subject to when school fees are paid but interest is paid monthly on the loan. However, the overdraft limit is available for the 12-month period and the account can be overdrawn at any point in time within the available limit.
Q. What is the expected maximum Debt Service Ratio (DSR) of interested customers
A. The expected maximum debt service ratio (DSR) is 30% of annual turnover.
Q. Is there a penalty for early repayment of the loan?
A. No.
Q. What is the security proposed for this facility?
A. The security proposed are as follows:
• Undertaking to domicile schools fees and other income with the Bank
Collateral cover of either:
• Fixed or cash deposit (Naira) – loan amount will be 90% of deposit value
• Fixed or cash deposit (GBP or Euro or USD) – loan amount will be 50% of deposit value
• Legal mortgage property – including school premises – loan amount will be 80% of property value
