Sterling Bank sets aside N20bn for SME loans

Sterling Bank says it has set aside N20 billion to disburse as loans to entrepreneurs and owners of micro, small and medium-scale enterprises.

Addressing journalists at the bank’s headquarters in Lagos on Tuesday, Benedicta Sadoh, the bank’s group head for retail assets and liability, said the loans are not targeted at importers.

Sadoh explained that some of the loans will be made available without collateral under a scheme called ‘Business Support Facility’.

“The loans will be processed within a maximum of 48 hours with minimal documentation,” she said.

“Customers can get up to a maximum of N5 million for unsecured loans to be paid back within 18 months and N20 million for secured loans to be paid back within 24 months.

“There is no fixed interest rate because we have come up with a scorecard to evaluate the customer. The score will determine the interest rate.”

According to Sadoh, the bank hopes to have disbursed N20 billion to a minimum of 50,000 entrepreneurs by mid-year 2020.

In his comments, Jelili Fatai, Sterling bank’s unit head for SME sales, said the loans are targeted towards businesses that generate daily cash flow.

Fatai also said the loans are insured so that the bank does not record cases of non-performing loans adding that the loans are available to non-customers of the bank.