Our last discussion on this column addressed Diamond Bank’s Emerging Businesses Vehicle and Asset Financing loan, which is meant for its business customers.
In addition to that and many more we had addressed in the previous weeks, we will now give general overview of the all other offers under the Emerging Business Loan packages. Before applying for this loan, it expected that you should have maintained a business account with the bank for a minimum of three months.
Also, the bank expects that you should have been in that line of business for at least 12 months and the business should be registered with the Corporate Affairs Commission. The bank says that loan applicants should not have previous record of loan default with any bank. Other requirements include evidence that you have a functional business that generates regular cash flow.
The minimum loan amount is N1 million while the maximum is N20 million. The loan tenor does not exceed 12 months for overdrafts and maximum of 36 months for asset finance. Though repayment is aligned to customer’s cash flow, full repayment is expected to be within the loan tenor.
The bank usually spread the repayment on monthly basis across the duration of the loan. The interest rate on the loan is about 26 percent, though some charges may apply.