How a Salary Account can help you Borrow Money

Posted by Felix Okoli on Monday April 14, 2014 at 13:53:8:

One of the main advantages of operating a salary account is that you can easily get a loan from the bank you are operating the account with.

Most banks easily honor loans applied by customers who are already operating a salary account with them for at least 6 months as they can easily deduct some percent from your salary at the end of every month to pay off the loan.

Some banks allows you to take a loan of up to 5 million or more depending on how much you earn per month and spread out the payment to last for up to 3 years or more so you can pay in small amounts from your salary.

Requirements for Obtaining a Loan with Your Salary Account
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To obtain from a bank using your salary account, You have to have the following:

• You must have operated a salary account with the bank for at least 6 months
• A letter of guarantee from your employer
• A national identification card
• Utility bill to verify your address
• Your employment letter
• A proof of salary payment for the last six months.

You will be issued a salary loan form to fill, the bank processes the form and transfer the amount to your salary account. Some banks do not allow Customers take a loan that is worth more than 10 times your monthly income. That means, if your monthly is N50, 000 you may be allowed to take a loan of up to N500, 000.