ziddy:


i see you are leery of dropping more details, maybe the circumstances leading to her exit from that job were less than savoury. That guy said it all. She can walk away and try to forget she ever worked in a bank (no references, ever). There is nothing the bank can do to recover said indebtedness except sit on her references.

All loans given out by banks are meant to be collateralised, under Nigerian law. Any bank that gives out an unsecured loan breaks the law!

SweetJoystick:
She will have to pay. The bank can't forfeit it. The bank will restructure the loan to a commercial loan and not a staff loan with little or on interest.

The reason the bank asked her to pay immediately is because they know once it's a commercial loan it will be difficult for her to pay as the interest rate would increase.

It's not like if she doesn't pay now they will come after her. It will only dent her credit rating. What that means is that she would have a bad loan rating, if she even pays much later and secures another employment elsewhere and applies for a loan, be it commercial or staff loan, it might not be granted because her rating would have been dented as a defaulter in credit bureau

pedrilo:
as a banker, this is the only valid point so far.

ddestiny145:
Dear brethren. Please do advice. My sister'S appointment got terminated in a bank and she was asked to refund the loans she collected from her office. Note:she had no intention to live the bank. The loan was meant to be deducted from her monthly salaries. Lawyers in the house can she make a case in the court. Since she didn't resign but the bank ask her to go,invariably the bank should also forfeit the loans since they terminated her appointment.

SweetJoystick:
She will have to pay. The bank can't forfeit it. The bank will restructure the loan to a commercial loan and not a staff loan with little or on interest.

The reason the bank asked her to pay immediately is because they know once it's a commercial loan it will be difficult for her to pay as the interest rate would increase.

It's not like if she doesn't pay now they will come after her. It will only dent her credit rating. What that means is that she would have a bad loan rating as a defaulter who doesn't repay as at when due, if she even pays much later and secures another employment elsewhere and applies for a loan, be it commercial or staff loan, it might not be granted because her rating would have been dented as a defaulter in credit bureau

ddestiny145:


Thanks alot. More opinions please.

ezteem:


She's definitely going to payback as most of these companies make you sign that you'll finish up loan even if you are laid of. Money can make people blindly take loans.

ddestiny145:
Dear brethren. Please do advice. My sister'S appointment got terminated in a bank and she was asked to refund the loans she collected from her office. Note:she had no intention to live the bank. The loan was meant to be deducted from her monthly salaries. Lawyers in the house can she make a case in the court. Since she didn't resign but the bank ask her to go,invariably the bank should also forfeit the loans since they terminated her appointment.

ddestiny145:
Dear brethren. Please do advice. My sister'S appointment got terminated in a bank and she was asked to refund the loans she collected from her office. Note:she had no intention to live the bank. The loan was meant to be deducted from her monthly salaries. Lawyers in the house can she make a case in the court. Since she didn't resign but the bank ask her to go,invariably the bank should also forfeit the loans since they terminated her appointment.

ddestiny145:
Dear brethren. Please do advice. My sister'S appointment got terminated in a bank and she was asked to refund the loans she collected from her office. Note:she had no intention to live the bank. The loan was meant to be deducted from her monthly salaries. Lawyers in the house can she make a case in the court. Since she didn't resign but the bank ask her to go,invariably the bank should also forfeit the loans since they terminated her appointment.

AceVentura:
@Poster,

Please ask your sister what she did that made the Bank ask her to go.

If she was relieved of her duties due to downsizing, the Bank usually clears any loans that she has with them.

In my opinion, she was involved in something fishy thus her predicament. Tell her to be truthful before coming here to ask for help....

So says a "banker".

Naturelle05:
that's the problem with loan,people are always in a hurry to get a loan without asking question,question like this should be asked, no body can boast of having a job tomorrow except you are self employed or work for government, loan from organization won't stop them from sacking you at anytime. She has to go to the bank and have an agreement with them but trust me they won't forfeit it.

Beowulf:


Please could you refer to the particular legislation of Nigerian law that requires the collaterisation of every loan?

ultron12345:
You are not even asking that the loan be paid back in installments rather u want the loan to be forfeited.....hmmm......people are wicked.


What did the loan agreement or policy say about loan repayment when the employee Is sacked?

XX01:


I tire o. People will just be fabricating things and terming them facts.

AceVentura:
@Poster,

Please ask your sister what she did that made the Bank ask her to go.

If she was relieved of her duties due to downsizing, the Bank usually clears any loans that she has with them.

In my opinion, she was involved in something fishy thus her predicament. Tell her to be truthful before coming here to ask for help....

So says a "banker".

SweetJoystick:


It's not like if she doesn't pay now they will come after her. It will only dent her credit rating. What that means is that she would have a bad loan rating, if she even pays much later and secures another employment elsewhere and applies for a loan, be it commercial or staff loan, it might not be granted because her rating would have been dented as a defaulter in credit bureau

Beowulf:


Please could you refer to the particular legislation of Nigerian law that requires the collaterisation of every loan?

shurley22:
What do I know

pat1612:

Is time to learn then how to manage if same thing happen
I am here to learn

Guitarlife:
@Op no doubt there will be a lot of uninformed suggestions here, far too many commenting have never worked as a full staff in a financial institution and therefore do not understand the circumstance of the issue.

There are two things involved here, are you referring to the upfront Quarterly payment that the bank regularly pays its staff and housing allowance paid at the start of the year or a loan by your sister where she requested for one and it was approved with legally binding documents signed ?

If it is the former (first) then, I'd say that the bank does not have any legal stand to demand your sister to pay it back because under the law there must have been an application and subsequent approval and acceptance of the said loan for loan agreement to be binding.
In this case your sister never applied for the loan therefore she is not technically obligated to pay although I am aware the bank might still throw her account into debit and start accumulating interest after some months. This to me isnt an issue per se cos there aint no binding agreement while the only issue might be that the bank may not provide a positive reference for your sister in future in case she chooses to apply for another jjob and need s the bank to referee her as having worked with them before.

Now to the second scenario, Your sister indeed applied for the loan and I understand she might signed some legally binding documents too. However, while she is morally obligated to pay the loan back their might not be a consequence as such most likely what i wrote up there will suffice too, it depends on the approach that the bank decides to take but I am aware that since no collateral was submitted which should be the case in a regular structured loan the case might not well compare with someone who took a regular loan out there.

I will want to read from other experienced folks too as this is an an opportunity to learn.

Thanks.

ddestiny145:
Dear brethren. Please do advice. My sister'S appointment got terminated in a bank and she was asked to refund the loans she collected from her office. Note:she had no intention to live the bank. The loan was meant to be deducted from her monthly salaries. Lawyers in the house can she make a case in the court. Since she didn't resign but the bank ask her to go,invariably the bank should also forfeit the loans since they terminated her appointment.

GratefulHeart23:


She can sue them for that. Most Banks would consider restructuring from Staff loan to commercial loan or go after 'naive' guarantors due to the uncertainty of the loan recovery duration.

In this era of MicroRate Client Protection palaver, recovering this type of loan can take like forever coz as a Bank, you can't force a client to repay a loan when he/she has no means of sustenance let alone repayment. As a Bank, all you can do is either wait till he/she secure a means of likelihood and agree on an instalment which might take like forever in this present economy or try your luck by going after her guarantors.

Mind you, a learned guarantor won't make such repayments coz the default isn't voluntary on the part of the client. Events of job loss, death, fire outbreak, flood and other natural disasters are not usually included in the guarantee form, insurance and restructuring do take care of such.

Repayment by restructuring do take long. Ideally, you only have the right to blacklist such clients on Credit Bureau if there are evidence that you have contacted the client and yet he/she refused to pay after securing a means of livelihood.

In a contry like Nigeria, this loan is as good as a write off, repayment might never come back. I smell termination due to fraud or flaunting any of the contractual terms here anyway coz if the job loss is due to downsizing, the person involved won't be compelled to pay.