Welcome, Guest: Register On Nairaland / LOGIN! / Trending / Recent / NewStats: 3,194,827 members, 7,956,138 topics. Date: Monday, 23 September 2024 at 04:52 AM |
Nairaland Forum / Nairaland / General / Politics / How Can Nigeria Bank Justify 30% Interest Rate On Loan? (7229 Views)
Investigation: Nigeria's Bank Verification Number, BVN, Exposes Gargantuan Corru / MFM Tries To Justify Molestation Of SaharaReporters Crew / Nigeria Bank Boss Sanusi Defends Fuel Subsidy Removal - BBC Podcast (2) (3) (4)
How Can Nigeria Bank Justify 30% Interest Rate On Loan? by walata44(m): 6:28pm On Feb 15, 2009 |
While all the goverment of serious country all over the world are slashing their interest rate to 1% sometimes 0%. The cabal that runs the Nigeria banks and central bank still maintain this clueless economy sense. Yaradua thinks by reducing the salary of the political office holder will improve Nigeria economy situation as if this people really depend on their salary to survive . How can any nation that have the interest of her citizen at heart justify 30% interest rate? Discuss, |
Re: How Can Nigeria Bank Justify 30% Interest Rate On Loan? by naijaking1: 6:50pm On Feb 15, 2009 |
What's there to discuss? You need economics 101 to understand demand and supply? You want to see some US banks charging 39% on certain customers? 1 Like |
Re: How Can Nigeria Bank Justify 30% Interest Rate On Loan? by birdman(m): 8:29pm On Feb 15, 2009 |
Interest rate is lower in other countries because of foreign investment. The more money people pour into your country, the lower the cost of borrowing money 1 Like |
Re: How Can Nigeria Bank Justify 30% Interest Rate On Loan? by brownbonno(m): 9:02pm On Feb 15, 2009 |
naijaking1: You need more than ECS101 to understand micro/macro economic theories.Reduction of interest rate stimulate business borrowings and investments. walata44: Salaries of government functionaries is only fraction of the expenses and allowances they collect and that is a heavy weight to the overhead cost of running the government of the day. |
Re: How Can Nigeria Bank Justify 30% Interest Rate On Loan? by MrCrackles(m): 9:06pm On Feb 15, 2009 |
30% interest rate is just a bleeding rip off! |
Re: How Can Nigeria Bank Justify 30% Interest Rate On Loan? by naijaking1: 9:15pm On Feb 15, 2009 |
MrCrackles: Do you need a No question that high interest rate stunts the economy---- that maybe the intention, if there is no demand, there will be no need to supply the product. How about the some Islamic banking- without interest(or very low fixed interest)? Once again, how has that worked? |
Re: How Can Nigeria Bank Justify 30% Interest Rate On Loan? by MrCrackles(m): 9:22pm On Feb 15, 2009 |
Me thinks interest rate should be subject to each individual credit worthiness, just as it is in developed countries Because Nigeria is not developed doesnt mean it should blatantly rape and rip off its own citizens Applying flat rates to loans and other credit facilities is grossly incorrect 30% is pretty much high risk lending rate, and lower risk customers shouldnt face the same problem But in Nigeria, seperating high risk customers and low risk customers is another area which needs to be sorted out How they will do that, i dont know, judging by identity fraud, inept postal address system and other important criterias, it is going to be a tough task!! |
Re: How Can Nigeria Bank Justify 30% Interest Rate On Loan? by naijaking1: 9:43pm On Feb 15, 2009 |
Here's the latest news on credit reporting agency in naija: http://www.nigeriamasterweb.com/paperfrmes.html Home Money Banking & Finance UBA, other banks pioneer credit bureau establishment UBA, other banks pioneer credit bureau establishment Friday, 13 February 2009 00:08 NGOZI UCHE User Rating: / 0 PoorBest The need for a financial infrastructure that provides information on credit profiles of corporate entities and individual customers has been met by the emergence of Credit Reference Company (CRC) Limited in the country, a world-class credit bureau. At the road show cum awareness campaign, held in Lagos at the corporate headquarters of UBA plc, the company management provided insight on the roles of a credit bureau to the economy. Tony Elumelu The group managing director, UBA plc, Tony Elumelu, observed that the bank saw the need for such an infrastructure in the financial services industry as far back as 2002, and initiated collaboration with the promoters of CRC and in the process, other financial institutions bought into the idea and made their stake. He expressed confidence in the management of CRC to be able to deliver the quality of service the organisation was set up to provide. The company is in association with some international institutions that facilitate the establishment of world-class credit bureaus, like Dun and Bradstreet, Accenture and International Finance Corporation (IFC). According to Elumelu, “a company like this is one of the infrastructure needed in the economy to provide relevant data to the financial industry”. The managing director of CRC, Tunde Popoola stated that the establishment of the credit bureau in the country would revolutionalise access to credit for both the borrowers and lenders. He said it would change the psychology of individuals on credit by eliminating fraud and reducing incidences of loan defaulters. “If you know that your history is available, that the loan you took from bank A, you did not pay back and that the record are there for other financial institutions to see, then it will make people to get committed to meeting their obligators to their creditors”, he explained. The pioneer chairman of CRC, Angela Nwabuoku, who is also an executive director in UBA flagged off the road show. At present, CRC has about 14 banks that have signed on to their service which is to take off by May. |
Re: How Can Nigeria Bank Justify 30% Interest Rate On Loan? by MrCrackles(m): 9:46pm On Feb 15, 2009 |
This will be interesting Fingers crossed on how successful it will be! |
Re: How Can Nigeria Bank Justify 30% Interest Rate On Loan? by naijaking1: 9:48pm On Feb 15, 2009 |
Once again, my point is that some customers, some situations, some circumstances deserve applicable market interest rate; 30% or even higher, while some deserve and even attract lower rate. |
Re: How Can Nigeria Bank Justify 30% Interest Rate On Loan? by MrCrackles(m): 9:51pm On Feb 15, 2009 |
naijaking1: Yeah High risk customers deserve large APR's/EAR's while low risk customers deserve low APR's/EAR's But how do we reconcile that in Nigeria? |
Re: How Can Nigeria Bank Justify 30% Interest Rate On Loan? by naijaking1: 9:54pm On Feb 15, 2009 |
MrCrackles:Good question my brother, we'll see how the UBA guys answer that in a country without ID #, or social security number. |
Re: How Can Nigeria Bank Justify 30% Interest Rate On Loan? by Naijex: 3:16am On Feb 16, 2009 |
Nigeria need to find out from the U.S. The Nigerian banks are lending at high rate now for low terms, wait and see, it will get to a time the value of their collateral will fall and borrowers will default, then, they will have problem. This is one of the reasons why wall street ran into problem. |
Re: How Can Nigeria Bank Justify 30% Interest Rate On Loan? by bawomolo(m): 3:27am On Feb 16, 2009 |
naijaking1: or a credit reporting agency |
Re: How Can Nigeria Bank Justify 30% Interest Rate On Loan? by JosBoy4Lif(m): 6:42am On Feb 16, 2009 |
What is the savings rate in Nigeria, shouldn't it be high too? |
Re: How Can Nigeria Bank Justify 30% Interest Rate On Loan? by jensinmi(m): 9:38pm On Feb 16, 2009 |
A 30% interest rate isn't so bad o,, , , , . if you intended to start your own cocaine manufacturing and distributing business with the money. Guess it won't be so hard to pay back the 130% the following year. |
Re: How Can Nigeria Bank Justify 30% Interest Rate On Loan? by MrCrackles(m): 9:40pm On Feb 16, 2009 |
jensinmi: |
Re: How Can Nigeria Bank Justify 30% Interest Rate On Loan? by Nobody: 10:00pm On Feb 16, 2009 |
naijaking1: National ID or SSN is seriously needed in nigeria for these ideas to work, but it wont work at all even if the banks decide on 0% interest rates. What is the borrower going to do with the loan, buy a big generator for production first? No electricity, no development. |
Re: How Can Nigeria Bank Justify 30% Interest Rate On Loan? by shyling(f): 2:26pm On Dec 18, 2016 |
my colleague is officially on 32℅ rate.... suicidal 1 Like |
(1) (Reply)
This Is ARMED Mend. 48hrs Before The Explosions In Abuja. video. / Acknowledged Copy Of Petition Against Ameachi From EFCC- PICS / Government Doesnt Want Igbo Traders In Lagos - Vanguard
(Go Up)
Sections: politics (1) business autos (1) jobs (1) career education (1) romance computers phones travel sports fashion health religion celebs tv-movies music-radio literature webmasters programming techmarket Links: (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) Nairaland - Copyright © 2005 - 2024 Oluwaseun Osewa. All rights reserved. See How To Advertise. 28 |