:: Wema Bank Plc :: -Retail Banking

Retail Banking department is a group saddled with the responsibility of abridging the financial needs of the lower and the middle classes of the economy by making available financial supports for the creation of retail based risk assets and liabilities with the ceiling amount of not more than N50million turnover in six months.

Retail Lending is subject to ever changing forces, which vary with the business cycle, internal benchmarks, and other considerations. The volume of risk assets, type of risk and loan trends, are subject to continuous review by Management in ensuring that they conform with the bank’s policy standards and government guidelines.

Types Of Security For Lending

Shares of blue chips companies quoted on the Nigerian Stock Exchange

Cash Deposit collateral
Landed Property
Insurance Policies (Life Assurance Policy)
Guarantees
Company Assets
Stock Hypothecation

Requirements For Lending:

Application letter from the intending customer stating the purpose of borrowing and tenor.
Customer’s profile
- Cash flow or financial projection
- Other bankers: stating her exposure, evidences of exposure
- Experience in the line of business
Details of management profile
Particulars of Directors/Ownership/Shareholding/ Capital Structure
Assessment and analysis of collateral i.e. search/valuation/state of perfection
Memorandum and Articles of Association

Lending Rate:

For all types of lending in Retail Banking, the interest rate is currently MRR + 4% per annum on daily balances.

Details Of Types Of Lending:

We structure credit facilities to meet the specific businesses of customers. Such facilities are packaged and managed by proactive Relationship officers who have an in depth of their target markets and experience of the business dynamics. Below are some of the facilities:

Guarantee& Bonds
Retail Banking issues, amends and pays on performance bonds given by one party to another against loss or violation of the contract. This may be used to support a customer’s promise to deliver goods or guarantee obligation to complete a project.
Overdraft
This facility is structured to augment customer’s working capital by bridging the gap that may arise as a result of the cash inflow and outflow.

Leases
This is a facility that allows customers to acquire assets like equipment, plant and machinery while repayment is structured to allow payment of monthly rentals without undue pressure on the customer’s incomes.
Term Loan
This facility has longer tenor than overdraft. It is used to meet long term business needs such as business expansion and procurement of large plants. In structuring term loan, peculiarity of the industry in which a company operate is considered. This would prevent default on the part of the customer.
Import Finance
This is a facility type that enjoys flexibility of options. Wema Bank introduces options that meet the need of their customers in relation to cost-effectiveness. These options include, standby letters of credit and collection obligations, bankers acceptance etc.
Export Finance
Wema Bank extends facilities to their customers to meet international transactions at various stages; from production to shipping of the goods to buyers and collection of the proceeds.