chronique:
Are micro finance banks permitted to collect collateral for loans and if so,what's the average industry standard grace period to be applied before a person's asset can be sold off to recover the loan?

Lexusgs430:


With this thought process, don't even bother collecting the loan.........................
The would demand a collateral and I'd loan is defaulted, collateral would be sold off............. Time limit would be in your signed contract or ask prior to signing on the dotted lines...........

chronique:
I'm not planning on collecting. Someone I did some stuff with,has got himself into all that.

Lexusgs430:


Is the person already finding it difficult paying back? If yes, yawa don gas............
Best the person digs up the contract and reads all the small and large prints.......

chronique:
Yes.

Seriously this Bank Loan in not just Reliable atimes.
I know of someone that took a loan of about 800k with an intrest of almost 30% p.a and he has to pay back in 60months. The intrest all together was about 1.6 or thereabout.Personally i think thats outrageous.

ehubaba:
nice write i applied for diamond bank loan 2 million to get a car the loan was to pay back in 48moths after calulation of my repayment total wud be 5m ..not encoraging

Lexusgs430:


Yawa don gas be dat o............. I hope the asset is not the house he lives in?

chronique:
No. A car

Emeka71:
Also; understand the fact that at payback time; bank is calculated to make money from you; BTW we are fools in Nigeria bringing recession upon ourselves; we keep money in the bank and Dangote and other few businessmen use our money to do business and make money for themselves and the banks; let's think business; lets think production.

Lexusgs430:


If he cannot pay back, hope it's not his only car? Cause the vehicle would surely be impounded.

chronique:
It is.

eph12:
Thinking of getting a long term loan to hasten the expansion of my business. Any suggestions on the best bank for this?

emma2002:


Good initiative.

However, you need to do it in small bits. The economy is not healthy for any huge borrowing or else you will end up spending what you have now to pay the bank and still it won't be enough.

By the way banks should be your last resort!

eph12:

To use a bank loan to start a business? Not advisable at all. The incubation period for a start up is 3-5 years so how do you service your loan when you still finding your feet? If it's to expand the business fine but not starting a new one unless there's a business you're running aside which can help in servicing the loan.

niggi4life:
The most important thing to take note of is your Heart condition..

Take a bank loan and your business crumbles... you might get a heart attack

didymario7:


I think in some cases you can actually start a business with bank loan. For example if I have been doing thesame business with a partner or as an apprentice and one day I decide to go solo, It is pretty safe to secure a loan because I have mastered the terrain already.

nony43:
Noted, but one thing I know is it is not always a good to start a business with a loan

eph12:
Thinking of getting a long term loan to hasten the expansion of my business. Any suggestions on the best bank for this?

eph12:

To use a bank loan to start a business? Not advisable at all. The incubation period for a start up is 3-5 years so how do you service your loan when you still finding your feet? If it's to expand the business fine but not starting a new one unless there's a business you're running aside which can help in servicing the loan.