My cousin just got a ministry job which he feels it's better than his current banking job. Kindly advise on the best way to go about since he has an outstanding loan that he doesn't have money to offset.

Tell your cousin to go look for money(borrow from family and friends if the outstanding amount isn't too much) to pay off the loan collected from the bank. In that way, he will have a smooth transition to the Ministry.

He has actually approached some of us for help so that he could payoff but we are of the opinion that ha can be paying the loan from his new place after resignation.

^^^^ yes that can still be arranged but like I said in my first post, for a smooth transition to the Ministry, he should raise the money and clear the out-standing debt with the bank.

Well it all depends on the amount he owes...usually when a staff is indebted to a bank, prior to resignation the balance of the remaining sum he owes them (the bank) will be deducted from his terminal benefits. So if the loan isn’t much, his terminal benefit package should cover it.

@crazyman,thanks .But he claims that terminal benefit might not be paid since he's resigning notwithstanding that he has spent 7 years with the bank. Again, I have also advised him to get in touch with their HR but he said that would be dangerous as it might be counter productive.

Having worked for 7 years @ that same bank, he is entitled to some benefits. However, I hope he is giving the bank 1 month's notice in lieu.

Solupeace: @crazyman,thanks .But he claims that terminal benefit might not be paid since he's resigning notwithstanding that he has spent 7 years with the bank. Again, I have also advised him to get in touch with their HR but he said that would be dangerous as it might be counter productive.

Is he a contract staff or a full staff of the bank...?

On average 7 years in a Naija system should fetch you nothing less than N3mil. The bank will collapse his loan and net it off from his entitlements. problem solved!

@crazyman, he's a full staff and he's been asked to resume on 1st December.

Which bank is that? Banks treat disengagement matters differently. Access will only pay you your last salary.

1. He is resigning



2. He is not giving a notice (your insinuation)



He should take it as it comes but it would be better to settle the loan before he submits the letter as he may lose the 'staff' advantage.

Fact is when he exits the bank, outstanding loan taken when he was a staff at lower interest rate- staff welfare loan rate- would be converted immediately at the prevailing commercial rate.
Another thing is, his new employer- Ministry- may not adopt the loan. Therefore they may not pay it off for him and take it in as staff loan in his new place because he wont have qualified for it since he needs to put in a minimum of 6months for his appointment to be confirmed to enable him benefit from staff loans in most places.

His best bet is to resign from the bank, obtain his calculated final entitlement; if it reads that he is indebted to the bank, he can issue the bank posted cheques to the bank, offsetting his indebtedness in piecemeal month by month. The Bank will agree to that because they know if he defaults, they wont grant favorable reference to his new employer at his pre confirmation appraisal stage.

If he has his annual leave intact, he should proceed immediately. Then resign immediately it starts. Thus part of the duration serves as 1 month notice period. He can use the same period to work out everything related to his terminal benefits and loan.

In the absence of leave, it is better to pay a month's salary and clear out the debt once and for all because he won't enjoy the low/no interest rate again.

hmmmm

Kx: Fact is when he exits the bank, outstanding loan taken when he was a staff at lower interest rate- staff welfare loan rate- would be converted immediately at the prevailing commercial rate.
Another thing is, his new employer- Ministry- may not adopt the loan. Therefore they may not pay it off for him and take it in as staff loan in his new place because he wont have qualified for it since he needs to put in a minimum of 6months for his appointment to be confirmed to enable him benefit from staff loans in most places.

His best bet is to resign from the bank, obtain his calculated final entitlement; if it reads that he is indebted to the bank, he can issue the bank posted cheques to the bank, offsetting his indebtedness in piecemeal month by month. The Bank will agree to that because they know if he defaults, they wont grant favorable reference to his new employer at his pre confirmation appraisal stage.

best response. I am a banker and Kx is very correct to the end.

How on earth will someone work for 7yrs and will not be paid something as final entitlement. Are u sure he is telling the truth. Or was he disengaged by termination or dismissal. If not, he ought to be paid something. Be as it may, he can request that his net benefit if negative should be converted to commercial loan for him. By that, the bank can entire into a new loan agreement with him while he will be paying from his salary from his new employer. Ministry is even better than bank job now. They pay moderately and provide other opportunities and time for other things. U also enjoy yourself and family with rest of mind. Congrat.

biltem: How on earth will someone work for 7yrs and will not be paid something as final entitlement. Are u sure he is telling the truth. Or was he disengaged by termination or dismissal. If not, he ought to be paid something. Be as it may, he can request that his net benefit if negative should be converted to commercial loan for him. By that, the bank can entire into a new loan agreement with him while he will be paying from his salary from his new employer. Ministry is even better than bank job now. They pay moderately and provide other opportunities and time for other things. U also enjoy yourself and family with rest of mind. Congrat.

dey there. I don't want to mention the name, but I have first hand info on a bank in Nigeria, even if you work there for donkey years, the day resign you are only paid you last month salary, that's if you give sufficient time. Otherwise you won't be paid that month salary! It is so sad that NLC abi union all them sabi na to stage strike so them go collect money for ghana-most-go from Abuja to call off the strike!

Simple. Pay them their money and resign or are you planing to abscond with their money!

Borrow money from ur family to pay them & resign Shikene.

This shouldn't be a big deal. Apply for resignation right away and work for the next 1month.
Resuming in a fed govt ministry/parastatal falls within a 1month range. You'll be given 2weeks off after documentation from the date you resume.
You can use your same bank account as salary account in the new place of work and subsequent salaries will offset your loan.
Once your acct is changed from staff salary account to the conventional checking acct, the interest rate of your loan will change slightly, (not so much, you can handle it) and your repayment too.
The bank will also take some time to arrange your terminal benefit and if you got nothing, they'll hold to your word of quitting for a new job and even have a copy of your offer letter if necessary.

My only fear is you may not start earning in the Ministry till about 3-6months. Due to documentation and ippis issue.

Get yourself a repayment plan to enable you get final clearance from them.

If you don't settle your obligation to your former employer(s), you'll have issues accessing your pension.

biltem: How on earth will someone work for 7yrs and will not be paid something as final entitlement. Are u sure he is telling the truth. Or was he disengaged by termination or dismissal. If not, he ought to be paid something. Be as it may, he can request that his net benefit if negative should be converted to commercial loan for him. By that, the bank can entire into a new loan agreement with him while he will be paying from his salary from his new employer. Ministry is even better than bank job now. They pay moderately and provide other opportunities and time for other things. U also enjoy yourself and family with rest of mind. Congrat.

My brother, bankers are really endangered species. you will never know until you're in, or have close friends that are in it. most banks will not pay you anything when you resign, no matter how many years you have worked. I keep telling young ones who have newly gotten bank jobs not to feel they have arrived. its not a place to relax. plan your exit once you collect your appointment letter. Also try and save for the rainy day so your employer can never hold you to Ransome.

As for the op, you need to work out a scheduled payment plan with your old employers, and follow it religiously. its always good to leave on a good note.

Best of luck.

But does the ministry require references from a previous employer? From what iv heard its not a requirement,so I think ur frend shud go ahead and quit,then use his churchmind to settle his debt, correct me if I'm wrong

some Government agencies like the CBN will not even allow you resume for training until you come along with a letter of non indebtness/clearance from your former employer -they state it clearly in your offer for employment (though there is a way round this hurdle). While some Banks e.g Ecobank ll not pay you dime as gratuity until you serve them for 10yrs.
The easiest way I think is to raise cash and offset the loan with his present employer.

tjskii: But does the ministry require references from a previous employer? From what iv heard its not a requirement,so I think ur frend shud go ahead and quit,then use his churchmind to settle his debt, correct me if I'm wrong

Thank you jawe, "Ministry" does not require any reference from any previous employer.

Tell your friend to just inform them by writing he is resigning.
Give them one months notice or forfeit one months salary in lieu.

Let him tell them to calculate his "entitlements" (they would try to ensure he gets as little to nothing as possible) and then he would make arrangements to offset the difference between Loan and entitlements.

LET HIM NEVER MAKE THE MISTAKE OF TELLING THEM WHERE HE IS BEING EMPLOYED NOW, those banksters can be very vindictive at times!

He needs to be wary.

My ten cents.

Lastpage!

CrazyMan: Well it all depends on the amount he owes...usually when a staff is indebted to a bank, prior to resignation the balance of the remaining sum he owes them (the bank) will be deducted from his terminal benefits. So if the loan isn’t much, his terminal benefit package should cover it.

You may be surprised that the terminal benefits of some banks is not up to one month salary which cant evidently clear the outstanding loan

Some banks don't pay terminal benefits unless the person has worked for 10yrs.

if the new employer can't absorb the loan, I will advise your friend to pay the loan or risk losing reference.

tell ur Brother not to resign o, that ministry work may take another six month before the appoint will have head.

I had a loan when i resigned. Collect new appointment letter then resign, its no news. They will work out your debts and benefits..

hello, i just resigned from a bank 2 months ago. i left to pursue a career in the oil and gas industry and their is no reference required. the bank does not pay any terminal benefit.he shld just resign and in his resignation and ask the bank to apply his annual leave as his 1 month in lieu of notice.he should NEVER tell the bank where he is going. the banks now have a common platform where people who have running loans in a Nigerian bank are stored. the platform uses NDL, international passport or national id card as a means of identification. so in future if he wants a loan in another bank, the report would come back negative and he would be disqualified.

he should resign and start the new job and pay the loan from his monthly salary. banking in nija is pure slavery so u just cannot compare the two jobs. please just resign and dont have any remorse because the bank would sack u without looking back. Labour should look at the conditions of service in these banks