goodday nairalanders, i am about to open a microfinance bank, i have gotten a list of requirements from cbn and i need advice frm people who know about setting up one

CBN says i need a board of directors apart frm the bank management, how do i assemble a board of directors

how do i key into e-banking, mobile banking and use of ATM cards

one of the main interest of the bank is giving out of loans to both individuals and SMEs....how do u suggest i handle those that fail to pay back their loans

i await ur comments

ultron1234:
goodday nairalanders, i am about to open a microfinance bank, i have gotten a list of requirements from cbn and i need advice frm people who know about setting up one

CBN says i need a board of directors apart frm the bank management, how do i assemble a board of directors

how do i key into e-banking, mobile banking and use of ATM cards

one of the main interest of the bank is giving out of loans to both individuals and SMEs....how do u suggest i handle those that fail to pay back their loans

i await ur comments

you do not need a board of director yet cos i believe you are starting as a unit. You will need a microfinance fanancial software to operate. As time goes on you can then bring in your e-banking plattform. On your contract and agreement foam, the client guarantors will be made to sign and gauranted the repayment of loan in the invent of default.

ewen:



you do not need a board of director yet cos i believe you are starting as a unit. You will need a microfinance fanancial software to operate. As time goes on you can then bring in your e-banking plattform. On your contract and agreement foam, the client guarantors will be made to sign and gauranted the repayment of loan in the invent of default.

thanks for ur reply....i would like to start with the e banking platform as i believe it is a service that will attract more customers...do u have any idea how i can offer it

most times the guarantor also fails to repay the loan...is it legal to use the entire stock and equipment in the persons shop as colateral....so that if there is a default...the stock can be seized by the bank and be sold to recoup the loan

Deal with only credit worthy clients by always carrying out a check with Credit bureau. BVN has solved 50% of loan recovery problems and should always be provided when opening account

Make sure the guarantor works with civil service and is capable of paying the borrowed sum.

Ask for easily disposable collateral if you find it a high risk

ultron1234:
thanks for ur reply....i would like to start with the e banking platform as i believe it is a service that will attract more customers...do u have any idea how i can offer it

most times the guarantor also fails to repay the loan...is it legal to use the entire stock and equipment in the persons shop as colateral....so that if there is a default...the stock can be seized by the bank and be sold to recoup the loan

b



Go with thundcord sugestion. Use two gaurantor for each client. At least one of the guarantors must be a salary earnal (civil servant) it should be well spet out in your agreement form that they are guaranteeing the loan in the event of default and not the client. So whether the client is available or not, so long as he is unable to repay the loan the gaurantor will have to pay the loan.

ultron1234:
thanks for ur reply....i would like to start with the e banking platform as i believe it is a service that will attract more customers...do u have any idea how i can offer it

most times the guarantor also fails to repay the loan...is it legal to use the entire stock and equipment in the persons shop as colateral....so that if there is a default...the stock can be seized by the bank and be sold to recoup the loan

using stock and equipment of client is not advisable because the client will want to play smart attimes. The equipment will also depreciate and you may not find a ready buyer for it. Client may change the issue to court case that you took their equipment together with some huge amount of money in their shop. This is current happenings about microfinance bank and bad client. So a good gaurantor is the best. Once you get a reliable guarantor to sign the contract form, you ate sure of hundred parcent repayment in the event of default.