LOANS FAQs

Workplace Banking FAQs

Personal Loan: It involves lending to employees of blue-chip companies, large corporates, federal governments MDAs, States, and Local government.

A maximum tenure of 60 months. (Personal loans).

39% p.a. (personal loans).

Yes, there are. Please refer to the table below.

S/No

Product name

Management fee

Insurance

Equity Contribution

1

Personal Loan

1%

2%

NIL

Confirmed Employees.
Annuitants.

Company CategorizationCurrent Maximum loan amount (N)Current Maximum Tenor (Months)
Category A: Blue-Chip Companies60M60
Category B: Large Corporates50M60
Category C: Special Federal Government Revenue Generating Agencies30M48
Category D: Federal Government MDAs10M36 (Subject to the outstanding tenor of the current administration)
Category E: SMEs, States, and LGAs5MSME – 36 State and LGAs – 36 (subject to the outstanding tenor of the current administration)

 

Companies in the categories above

  • Category A: Blue chip Companies – Examples include but not limited to: International Oil Companies (IOCs) e.g. Chevron, Mobil, Shell, Agip, Total etc others include listed blue chips like Cadbury Nigeria Plc, Flour Nigeria Plc, Unilever Nigeria, Guinness Nigeria Plc, Nestle Nigeria Plc, Transcorp Plc, Nigerian Breweries Plc, West African Gas Pipeline Company Limited (Wapco) etc.

  • Category B: Big Corporate- Examples include but not limited to; BUA Group, Airtel Africa, Dangote Group, Seplat, Julius Berger, Ikeja Electricity Distribution, Electricity Distribution Companies, 9 Mobile, Coca Cola, Procter & Gamble (P&G), KPMG etc.

  • Category C: Special Federal Government Revenue Generating Agencies – Examples include but not limited to; FAAN, NPA ,FIRS, NIMASA, NDIC, NCAA, NAFDAC, NNPC, DPR, CBN, BPE etc.

  • Category D: Examples include but not limited to; Federal Government MDAs, Budget Office, Federal Ministry of Finance, Corporate Affairs Commission (CAC), Debt Management Office etc.

  • Category E: SMEs, States, LGAs, primary and Secondary Schools- All 36 states plus FCT and their LGAs., Nazmaj Agro Farm, Prestige Transport and Logistic Ventures, I.U Auyo Farms, Babani Mai Katifa & Sons Enterprises, Farmers Pride General Enterprises, Dutse Animal Husbandry and General etc.

Commencement of banking relationship with opening of salary account and a minimum of 2 months salary payment is a requirement to process this loan.

  • Minimum of two (2) months banking relationship with Sterling Bank and evidence of monthly salary payment for 2 consecutive times.
  • The individual’s age must not exceed 65years upon the expiration of the loan, and 50-75years for Annuitants.
  • The individual must be a confirmed employee.
  • DSCR of 33.3% of the net monthly salary or 66.6% on bi-annual allowance.
  • 40% DSCR on annuity inflow for Annuitants.

DSCR refers to Debt Service Coverage Ratio. This is the percentage of your monthly net income (after tax & other deductions/indebtedness) which we would permit applicant to use to service their loan.

  • Request letter stating the facility type, amount, tenor, and purpose of the facility.
  • Work ID (where Applicable).
  • Letter of introduction from employer confirming that the customer is a confirmed employee.
  • Letter of employment.
  • Letter from employer to domicile the individual’s salary, allowances, and terminal benefits with Sterling bank.
  • Letter of exposure to other banks.
  • Letter of indebtedness from other banks/MFBanks (where applicable).
  • Last 12 months salary account with other banks (where applicable).
  • Valid means of ID disclosing the customer’s date of birth.
  • Three favorable credit reports.
  • Last three months’ pay slips.

For Annuitants

  • Duly executed Instruction mandate on disbursement and management of annuity funds with PFA.
  • Submission of Irrevocable Letter of undertaking by customer and acknowledged by PFA to remit monthly annuity into annuitant’s account in Sterling Bank until loan pay down.
  • The business team initiates the customer’s request via RCP.
  • Pre-approval documents are attached for evaluation.
  • Retail Credit Evaluation Officer evaluates request and recommends for approval.
  • Approval granted.
  • Offer letter issued in line with terms of approval.
  • The customer executes the offer and agreement.
  • Legal Evaluation is carried out (where applicable)
  • The request is forwarded to Credit Disbursement (CAD) for booking.
  • CAD disburses funds to customer’s Sterling bank account.
  • Loan Monitoring Officer forwards a comprehensive schedule of loans.

Vehicle & Asset FInance FAQs

The Vehicle & Asset Finance Product is a loan offering designed to help salaried customers acquire vehicles, home appliances, and gadgets for personal use, with the financed asset serving as collateral.

• Salaried employees with a salary account domiciled with the bank.
• Must have received at least two months salary in your Sterling Bank salary account.
• Must be a confirmed staff – not applicable for contract staff/employees.
• Adults of 65 years or younger at loan maturity

• Brand New Vehicles from approved vendors.
• Second-Hand Vehicles (max 10 years old, select brands only)
• Home Appliances & Gadgets, e.g., TVs, refrigerators, mobile devices ,laptops.

• Brand New Vehicles – Up to N60 Million (the bank can provide a limit of up to N60m excluding equity contribution provided by the customer)
• Second-Hand Vehicles – Up to N40 Million.
• Appliances & Gadgets – Up to N4 Million.

• 20% equity contribution for brand-new cars, gadgets, and appliances.
• 30% equity contribution for second-hand vehicles.

• Brand New Vehicles – Up to 48 months.
• Second-Hand Vehicles – Up to 36 months.
• Gadgets & Appliances – Up to 12 months.

• The standard interest rate is 39% per annum.
• A 1% management fee also applies.
• Final pricing may vary subject to market conditions and ALM confirmation • Insurance fee(5% of the value of the vehicle)

Assets must be purchased from:
• Category A vendors for each asset class (attached).
• Category B vendors are only approved on a case-by-case basis (attached).

• Request letter, salary slips, ID, and offer/employment letter.
• Verified invoice from approved vendors.
• Credit bureau reports (CBN, CRC, FC).
• 12-month account statement, plus evidence of salary.
• Employer’s introduction letter confirming employment status.
• Insurance and engineering report (for second-hand vehicles).

• The financed asset is the primary collateral.
• It will be registered in the bank’s name until the loan is fully repaid.
• Comprehensive insurance with the bank noted as first loss payee.

• After approval, the bank credits the vendor’s account directly.
• Customer must pre-fund their account with equity contribution, fees, and insurance costs.

Yes:
• Vehicles must be no older than 10 years from date of manufacture.
• Only certain brands are eligible: Toyota, Honda, Lexus, BMW, Kia, Hyundai, Mercedes-Benz. • Vehicle must pass a certified inspection, including VIN and lifespan verification.

• DSCR must not exceed 33.33% for asset finance loans.
• Total obligations (including other loans) must not exceed:
• 50% for Category A employers,
• 40% for Category B,
• 33.33% for Category C.

• Default after 2 months triggers asset recovery.
• Defaulting for 3 months or more leads to escalation to Remedial Management.
• Insurance claims or repossession may be enforced

• Once the loan is fully settled, the bank issues a Power of Transfer.
• Ownership documents are handed over to the customer.

Home Acquisition Finance Facility (HAFF) FAQs

The Home Acquisition Finance Facility (HAFF) is a mortgage product that avails mortgage-backed facilities to customers for a defined tenor. The borrower (mortgagor) receives financing from the lender (Sterling Bank i.e., the mortgagee) to purchase a choice property and lien is placed on financed or pledged property as collateral for
the loan. It is designed to partly finance the acquisition of completed properties in major cities and state capitals across Nigeria.

Initially, the product targeted at confirmed Sterling Bank employees and employees of pre-approved private-sector entities. The eligibility criteria have been expanded to include self-employed individuals and business owners.

For salaried individuals:

• Must be confirmed/permanent Sterling Bank staff or employees of pre-approved private sector entities who have spent a minimum of 6 months or completed a probationary period.

• Irrevocable domiciliation of salary and other entitlements to Sterling Bank is required.

• A letter of introduction from the employer must accompany the application, indicating the employer’s willingness to domicile salaries and allowances to the Bank and pledging retirement benefits until the full loan repayment.

• The employer must also notify the Bank before the obligor’s exit from the organization.

For self-employed individuals/business owners:

• Must have valid Corporate Affairs Commission (CAC) documents.

• Domiciliation of a business account with Sterling Bank with a fixed monthly turnover limit based on the facility.

• The company must have been in business for a minimum of 3 years and have a minimum of 3 months of active banking relationship with Sterling Bank.

• Facility limits are determined based on the business’s annual repayment capacity, historical revenue performance, leverage ratio, and Debt Service Coverage Ratio (DSCR).

• A maximum leverage ratio of less than 1 is required.

• A minimum DSCR of 2.0 must be demonstrated.

• The facility should primarily be available to business owners engaged in consumer goods and industries with steady demand and cash flow. Applications from other business categories will be assessed on a case-by-case basis.

Maximum of N150million

Yes, for salaried individuals, an irrevocable domiciliation of the customer’s salary and entitlements to the Bank is required. For self-employed individuals, domiciliation of their business account with Sterling Bank is required

DSCR refers to Debt Service Coverage Ratio. This is the percentage of your monthly net
income (after tax & other deductions/indebtedness) which we would permit you to use
to service your mortgage facility

  • For salaried individuals, a DSCR of 33.3% is required.
  • For self-employed individuals/business owners, a DSCR of 10% of the average monthly turnover in 12 months is required. A minimum DSCR of 2.0 must be demonstrated to provide a sufficient buffer, showing that the business consistently generates twice the income needed to service its debts.

The maximum tenor for salaried individuals is 10 years, with the obligor’s age not exceeding 60 years throughout the tenor. For business owners, the maximum tenor is 5 years ,with the obligor’s age not exceeding 60 years throughout the tenor.

Yes, equity contribution is required. For salaried individuals, 30% equity is required, maintaining a minimum Loan-to-Value (LTV) cover of 70% for residential properties. For business owners, 40% equity shall be made available.

Repayment sources are primarily from salary and allowances for salaried individuals, and from monthly business cash flow for business owners.

• Registered Deed of Assignment
• Certificate of Occupancy

HAFF currently caters only to the purchase of already completed residential properties

The facility finances completed residential properties in prime locations, as stipulated by the Credit Policy Guide (CPG), with associated basic amenities such as motorable roads, drainage systems, sewage systems, running water, and power.

The interest rate is 32% per annum, subject to prevailing market conditions.

Yes, this includes:

  • Commitment fee: 1% upfront.
  • Insurance premium for Credit Life & Job loss: 1% per annum of mortgage loan exposures.
  • Fire Insurance: 0.2% per annum.

No, there is no penal charge for part or full liquidation of facility

Pre-disbursement documentation includes:

  • Duly signed Offer Letter from the property vendor & offer acceptance by the obligor
  • Domiciliation of salary with the Bank (for salary earners)
  • Last 6 months payslips (for salary earners)
  • 3  years of audited financial reports (for business owners)
  • Domiciliation of business account with the Bank (for business owners)
  • Duly signed Credit Facility Agreement.
  • Documentary evidence of payment of the customer’s equity contribution.
  • Execution and submission of all documents required for perfection of the Legal Mortgage.
  • Comprehensive insurance on the pledged property against Fire and Special Peril, noting the Bank as the first loss payee.
  • Charting report on the property from the Surveyor General’s Office.
  • Credit Life and Job loss Insurance for the applicant.
  • Keyman Insurance on the promoter (business owner).
  • Corporate Guarantee of the obligor’s company (business owner).
  • Execution of Global Standing Instruction (GSI) by the customer.

Perfection fees are the fees paid to the government for the transfer of ownership of title from the original owner to the customer and then the registration of Legal Mortgage to note the Bank’s interest. Yes, you would be required to pay these fees. We advise client to set aside about 10% of the cost of the asset for perfection cost and same must be in a dedicated account prior to the disbursement of the facility

Yes, married couples may apply as co-applicants, provided they individually meet the Risk Acceptance Criteria (RAC) of the product paper.

Applicable fees & Charges

  • Commitment Fee: 1% upfront.
  • Insurance Premium:
    Credit Life & Job Loss: 1% per annum of mortgage loan exposures.
    Fire Insurance: 0.2% per annum.
  • Perfection Fees: Customer is to fund their account for payment of perfection fees and all associated costs. (10% of the cost of the asset is advised)
  • Upfront Fees: Customer is to fund their account for upfront fees in line with IFRS

The customer submits an application letter, executed application form, and other pre-approval documents to the Portfolio Manager(s), via any of branches Sterling Bank Branch or Send a mail to [email protected] to apply.

FAQs for Specta Xtreme

Specta is a digital lending platform created to enable consumers achieve their lifestyle aspirations through digital loans. Specta leverages the use of technology to give instant credit decision to customers. The digital journey from application to disbursement is within minutes.

Specta Basic: Targeted towards salaried individuals whose salaries are domiciled with the Bank.

Specta Extreme: This applies to self-employed or non-salaried individuals, regardless of whether they have an account with Sterling Bank, as well as salary earners who hold accounts outside of Sterling Bank.

• Online real-time support from our customer support agents.
• Extended loan tenors from 12–48 months depending on the loan variant.

You can access Specta loans by downloading the Specta App from the Google Play Store or iOS. You can also visit our website: https://specta.sterling.ng to apply.

High-income earners, professionals, business owners with strong financial records. 

Favorable interest rate of 40% – 44% per annum subject to customer’s category.

12 months repayment period

Typically, ₦50,000 to ₦2m

Yes, if they can show steady income through their accounts.

100% digital and No collateral required

No. However, where the customer is NTB (New to Bank) or their salary is not domiciled with Sterling Bank, an account will be opened for them during onboarding for disbursement purposes.

However, the statement of account from the customer’s provided account will be retrieved using the MyBankStatement service. This will be used to appraise the loan, verifying their salary or cashflow history.

FAQs for Specta Basic

Salaried customers with regular income paid into their accounts.

Typically, ₦50,000 to ₦5m

40%p.a. (Rates may vary depending on the community)

48 months

Yes, account domiciliation is required.

Yes. The bank requires your community to be onboarded.

Mostly organization that doesn’t meet up with community onboarding criteria.

It’s not fully digital. The customer’s profile and loan limit must be set up first before they can log in to view and access their limit.

Sub-distributors under select key distributors at Sterling Bank.

FAQs on business support facility (BSF)

It is a lending scheme targeted at SMEs.

Who are targeted customers under the scheme?

Yes, but the customer’s business must have been registered and in operation for a minimum of 3 years

The maximum single obligor limit is N20 Million. Amount up to N5 Million does not require collateral.

Amount up to N5 Million does not require any collateral while amount above N5 Million and up to N20 Million requires tangible collateral

Differentiated interest rate subject to customer’s credit score

Yes. Mgt & Advisory Fees @ 2% flat (upfront) and Insurance Fee @ 2.5% flat (upfront)

NO.

Up to 18 months for unsecured loans and Up to 24 months for secured loans

Business must have been registered with CAC and operated for a minimum of 3 years

Customer must have a verifiable and identifiable business location

Must have been operating from the verified and identified business location for a minimum of 2 years with an unexpired rent tenure of 6 months (if rented or leased)

Minimum of 1 month banking relationship with Sterling Bank supported with 12 months’ bank statement with any other commercial banks

Customer must be conducting an average monthly turnover of N2 million

Customer can access a maximum of 50% of average monthly turnover

Verified Business location rent receipt (with an unexpired rent tenure of 6 months) or ownership documents

Certificate of incorporation/ Certificate of registration

Customer’s application/commitment letter stating the following;

1. The purpose and needs for loan

2. Commitment to achieve a minimum of 200% turnover of the facility amount monthly

3. Commitment to meet all obligations

Letter of indebtedness to other banks (Refinancing)

12 months’ account statement from any other commercial bank (Newly onboarded customers)

Executed Checklist Document

  • Customer’s Application Letter
  • Executed Offer Letter
  • Credit Facility Agreement
  • Booking memo

For further enquiries, please contact:

Email:
[email protected]

Phone Lines:
02018888822 | 07008220000

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