₦airaland Forum

Foodempire:
How logical is an asset back loan for a mutual funds investor? You are lending yourself your own money then pay the custodian 15%/24% for nothing but gimmick. If you are so sure of generating profits from whatever you are taking a loan for, why don't you use your funds directly to get things done and earn all profits instead of going through a vigorous means that will shredded you off a whopping 15%/24% of your own sweat.

I believe this type of loans are for stranded people and a mutual funds investor shouldn't subscribe to such, as you can liquidate your investment anytime deemed fit to cater for aspiring businesses

emmanuelewumi:
It appears you are not business minded or Investment savvy


If you are a business man, you are eating your cake and having it.

A trader or business man with N22 million worth of mutual fund, can get a loan of N20 million.

If he got for 6 months, his total interest will be N1.5 million.

He used the N20 million to import goods and sold within 6 months, making profit of N5 million.

Paid interest of N1.5 million to the lender, meanwhile he has also earned dividend of N1 million from his mutual fund used as collateral within the 6 months of this transaction

Gbam. This can be liken to what @jedisco was saying. The rich keep getting richer because they understand the secret of money.

I have heard of a transporter who buys his buses on lease even though the cash is available to do 'cash down'. A new bus, all things being equal doing Lagos-Benin for 6 days a week can balance the money in 18 months.

emmanuelewumi:
Well I don't do business with microfinance banks.

Since it is monthly interest, nothing stops the customer from paying the interests every month and pay the principal repayment to a separate money market fund on a monthly basis at the end of the 5th month liquidate the money market fund me pay back the principal

If the Microfinance bank customers were this financial savvy, they would not have accepted this 'Flat' method in the first place. If the MFB customers are given a repayment schedule that has different repayment amount on a monthly basis, they get confused. They want to be told 'oga/madam, by month end, you go dey pay us xxxxxxx amount as Principal and xxxx as Interest' instead of 'oga/madam, for first month, na xxxx and xx. for second month na yyy and zzz, for third month na aaa and bbb'. A Keke Napep or Bus Driver with a Keke or Bus on a lease wants to just know how much he/she is to deliver on a daily basis.

emmanuelewumi:
This is the correct payment, they ought to use reducing balance. Since principal was reduced by 100k every month the borrower should not be paying N107,500 every month

They ought to but that is not what they do. They do 'Flat'. Interest remain the same throughout the duration.

emmanuelewumi:
If that is the case, pay your monthly interest and pay back the principal at maturity which is 5 months

The MFBs will not allow you to do this unless you are a Special customer. That is why i put 'NB' there. The MFBs use 'Flat' method and not 'Reducing Balancing' method.

Youngzedd:
It's 18%


1.50% per month multiple multiple by 6 = 18%


I was approached by account officer to take the loan by the 6 months is too short.

If you take a loan of 500k for 5 months for instance, this will be the calculation:

Principal Repayment = Loan Amount/Duration = 500,000/5 = 100,000/month

Interest Repayment = Loan Amount * (Interest Rate/100) = 500,000 * (1.5/100 ) = 7,500.

Total Monthly Repayment = Principal Repayment + Interest Repayment = 100,000 + 7,500 = 107,500.

NB: Microfinance Banks charge per flat per month

jedisco:
Talking about credit, I'd give an example of two Nigerians who arrive a Western nation.

Mr A comes in and gets a good job. He has heard alot about negatives of 'credit' and only wants to pay for what he can afford which to him means paying for everything in cash.. He does not get a credit card as he wants to avoid temptation. Of course he does that and is happy he is prudent. 10 years down the line, Mr A saves up, wants to buy a house, he approaches the bank asking for hundreds of thousands as mortgage... Of course he wouldn't be given or get a smaller sum at a high rate.

Mr B gets same job but on the other hand accepts a credit card from his bank when given. Spends from it and pays back fully when due. He buys item's weighing these sensibly against his earnings e.g a phone, car on credit and pays monthly even though he may pay higher eventually and can afford those items in cash. He is able to build up a good bank balance quicker while living a comfortable life. He approaches his bank yo aid with a mortgage, they look at his credit history and his balance and lend him an appropriate sum at a sensible rate as he has a good record. Few years down the line, he is able to raise some bulk sum again, places his initial house on rent and gets another mortgage. Now, his bank can lend him bigger sums at much lower rates (1.5%). In a few years, he has 2-3 houses on his name... Tenants in his rented houses are practically paying off his mortgage. He is able to build a good standing for his kids

Meanwhile, Mr A has just settled into his first home cos it took him years to understand how the system works....

I have seen this play out a number of times...

My summary is all about leveraging what the society gives and doing that within ones ability... Credit can be a double edged sword... It can make and also mar

Great insights. What you just described here happened exactly to an India who was working in a UK branch of a company that a friend works. He was recruited in India to work in the UK branch. He thought he was being credit worthy by not 'borrowing'.

Congrats for a job well done.

jedisco:
A while ago, Nigeria went borrowing via eurobonds issued between 6-9%...while this was expectedly oversubscribed, and some reasoned that this showed confidence in the market, I can't help but wonder why the rates are that high... The holders of this monies borrowed would have been forced to pay interest to banks if it sat idle in their home nations

Today, over 20% of all dollars in circulation was printed over the last 2 years and more is set to be printed out of thin air. The system is aflush with funds looking for who to lend it to... I remember stating a while back that they US and EU can afford to do that vos they know smaller nations will come begging. Already, that is happening.... Wouldn't be surprised that if the FG may need to organise free crude swaps in future to pay off these debts....

I cannot understand how an individual in the west will walk up to his bank, borrow hundreds of thousands of forex at rates well below 3% to buy a house appreciating at upto 10% per annum, yet a sovereign nation is happy to borrow such forex at 8%. Nigeria is practically giving Western lenders free cash..

This is the way I see the macro picture- an American sits in his house, prints paper outta thin air, a Nigerian goes cap in hand begging for such paper money at the expense of his natural resources and his fellow citizens are happy at being afforded such paper at cutthroat rates

Is it that the monetary system is rigged against poorer nations or poorer nations don't just understand it??

I will say the monetary system is riigged against the poorer nations. US will do QE by printing dollars and distribute to their citizens as welfare to buy consumption and luxury items but when we print our own Naira, there will be an uproar. We cannot even print our own Naira to pay pensioners. We are expected to sell in USD and then convert to Naira before paying pensioners.

emmanuelewumi:
I think Nigerian bank officers should also be educated on Asset Backed loans.

A 59 year old man was denied a loan by his bank because of his age and he his employment status ie retired. He was retired 4 years ago, built 2 houses for rental income and had over N30 million in FG bonds and Blue Chip stocks, but was denied a loan of just N5 million to plots of land and he was considering selling his bonds and shares to finance the purchase.

I told him to talk to his Stockbrokers, which he did and was directed to subsidiary. He got his loan approved within 48 hours and was able to pay back in less than 6 months

How many of our bankers are really well trained?. Most of them did not really go through the rudiments of banking.

Solomoncares:
*SOLOMONCARES NEWS UPDATE*

Need assistance on Getting the University of first choice and the Nations pride (UNILAG) Forthcoming Post Utme Form within 3Min both Online and Our Location ?
Then contact Solomoncares on
Https:///2348026098704

Do you have past questions of Uniben Post UTME?.

ojesymsym:
Baba, e b like say u go on sabbatical b4?

I dey kampe. I dey read every every.

Page 2000. Make i mark space for here before it goes to page 2001.

Tobex4realTobex234:
Who is game

Iam more than game.

DrEmmy01:
Uniport has already made a statement about the waec candidates....a new date will be given to them for their postutme.they didn't just remove students just because they are writing waec.

Thanks for the clarification.

Damscodammy1:
yes majority of dem are mergin 2 set together.
am even in a situation nw sef.my schl hv been pasting result of sum dep.my dep no gree paste result.tokles of me to start result clearance.4 my d.e stuff.schls hv start sales of putme nw.
my dep ehn.i hope dy paste it 4 me to aply o

If they are merging and they fixing the putme exam on days that WAEC students have papers, it means they have tactically weed out those students.

Damscodammy1:
Unizik post utme form is out now

Why are some Universities releasing post utme forms when students are still writing WAEC?. What if the date of the post utme exam clashes with that of WAEC, what happens and what also happens to students in boarding schools that are far from the University?. I was shocked to see that of Uniport fixed around 20th of September. Why the hurry?. Are they planning to resume the 2021/2022 academic session in October or Novembet?.

gbadexy:
High chief NL1960. You are sighted and highly appreciated sir.
It's been a while you visited us here.

I still visit. I now read in a quiet mode. Will try to resume commenting before Oga Hajji fine me one bottle of non alcoholic Hennessy.

Xandre:
A very big chance He's got.

Albeit he shouldn't be complacent in the post Utme.
Congratulations to him in advance.

Thanks. Will pass the message to him so that he can start reading for the PUTME once he concludes his WAEC.

Xandre:
290+ for Medicine in UNIBEN isn't a very bad one.

It falls under what I call 'a fighting score'.
If you can fully hit your post Utme hard, then you'll be fine.
Your chances will increase if you're from any of the catchment states or elds.
Just do well any score from 78upwards will put you in a very fine stead.

I know of somebody with 289 for Mechanical Engineering for Uniben and from catchment area?. What are your thoughts on this so that i can pass the information to the person.

PresidentBuhari:
As much as never say never, I would say such situation whereby a Taliban occupies the government is not possible in the UK, USA, Germany, Russia and China. They can only hold people hostage on these soils for a maximum of 72 hours and the bullets and ammunition that will be used to clear them will be one of its kind.

That was how they said nobody can invade the Capitol Hill.

PresidentBuhari:
A sober reflection with respect to what is happening in Afghanistan

Afghanistan is in crisis and most likely a new government will be formed. The instability will go on for a long time, the government to be likely formed by the Talibans determines everything concerning the country.

Now imagine all the domestic and foreign loans taken by the previous Afghan govt, it is most likely a default in repayments will occur, investors are leaving, foreigners are leaving, the currency is sharply losing value.

Now talk of the devil, Nigeria. If such happens in Nigeria, the same fate will befall the investors in bonds, Treasury bills, foreign loans. The value of assets will nosedive, as you invest locally it is unfortunate the need to diversify outside the shores of the country is necessary.

And you think such a situation can only befall Nigeria and not US, UK, Germany, China, Russia?.

Uyi168:
..
If you are in benin, there are lots of shops around where you can get the hard copies.

Thanks. Iam in Lagos. I can get somebody in Benin to get for me if you give me the location of the shops. I heard that there are many fakes out there. The person stays at Sapele road.

MrEgghead:
The general cut off is 200, which means you're more than qualified to write POST UTME. It's your total aggregate from the combination of your JAMB and POST UTME scores that will determine whether you'll get Law or not. Don't change anything, you are on the right track. Just go and read for Post UTME exam.

Please iam looking for Uniben PUTME past questions. Any idea where i can get it?.

Abetterperson:
Good morning everyone

This year has been a thorn in everyones flesh and just like everyone else I'm also tired of it.
I put uniben as my first choice in jamb hopely to study law but my jamb score is too law. I score 268 and the university cut of Mark is 270. At first I thought it didn't matter until I got to know that it matters a lot. I want to buy change of school form to fill in delus but I'm being told that they will not accept my request to study in their institution,that they will see it as if am picking them as second choice.
Please is it true

Who told you that the cut-off mark is 270?. Uniben does PUTME. JAMB is yet to come out with general cut-off mark and Uniben is yet to conduct PUTME. In addition, the mark you are posting is not what Uniben use for admission. Uniben cut-off for admission is based on 100% and it is derive from JAMB score and PUTME score.

With the general low score this year, 268 is a good score.

skydiver01:
The beauty of compounding... Happy Days Next stop Jan 2022

What's happening in Jan 2022?.

yazga:
No

I also know. That is why some of these things should be rightly qualified and that is why sometimes i do not pay attention to them. Life does not start and end in expensive cities.

yazga:
How Ready are you for retirement

At 30, you should have your annual salary saved for retirement
At 40, you should have 3X your annual salary
At 50, you should have 5X your annual salary
At 60, you should have 7X your annual salary

Where are you based on this recommendation?

If i intend to retire to my village at 60, do i need 7x my annual salary for retirement?.

Ohyinyeah:
Bank Boys will make cool cash

Not that easy if CBN is really serious about catching fraudulent applicants.

XiaoLi:
For those of you that is looking for investment that will give ROI of 30% in 3 months.


https://www.thisdaylive.com/index.php/2021/07/28/investor-commits-suicide-as-2000-nigerians-fall-victim-to-suspected-ponzi-scheme/

Na today, Even with this, people still fall victims to another one.

bjtinz:
Yeah I listened to analysis by Bismarck on channels yesterday and he was fully in support. CBN says it issues millions of $$ weekly but critical sectors that need it can't access it. Apparently most goes to illegal activities and money laundering.

I know somebody in the airline industry who has been lamenting their inability to get FX to pay for parts. Th CBN allocates the FX to BDCs and the BDCs now sell to them at N515.

NewSoul:
OAU- maybe not
Unilag- maybe not
Uniben- Yes definitely

Uniben that a dude with 292 got in last time with 88 p utme score another 291 86 p utme score. Our own MrEgghead here got in with 296 and 81 p utme score. In UNN person with 288 and 290 in putme still got in based on catchment. Why do you want to make it sound like only 300+ get admission to study medicine in Big schools. Is UNICAL a big school compared to the aforementioned schools? No!
A school you will equate UNICAL to is uniport and many 280+ gained admission. I chose UNICAL to increase my chances of admission actually not knowing I was actually avoiding fry pan and heading straight into fire.

A putme score of 79 in uniben would give me an aggregate of 77 which will definitely get me in. EVen the UNILAG, OAU and UI you can't tell its all the admitted student that got 300+ that's a fallacy. They might not be many but you'll definitely see students with scores between 290-299 for sure

You are making it sound like only those 300+ are the only ones that deserve to study medicine. Anyone below 300+ should go study botany

You score 300 and 80 in utme and post utme respectively and I scored 299 and 81, do you know my aggregate is higher than yours? drop that mindset jarey

Sorry to deviate from the topic as i saw the mention of Uniben. How do i get Uniben putme past question papers or what is the makeup of it?. I have somebody that will be writing putme later based on the recent released JAMB. He is going for Mechanical Engineering. He is from Edo state.

Akin3891:
https://www.nairaland.com/6672005/cbn-supply-forex-banks-only

I foresee more economy woes for Nigeria, dollar scarcity is looming.

Dollar scarcity looming for genuine users or for speculators and round trippers?. I know of somebody who works in the airline industry that said that they have not been able to service their foreign FX commitments because of lack of dollars. Everybody is now rushing to go and open a BDC because of cheap and free dollars while manufacturers groan and unable to bring in raw materials.