Sterling Bank Eligibility Criteria
The specific requirements will vary depending on the type of loan you're interested in (personal loan, business loan, auto loan, etc.).
However, here's a general idea of what Sterling Bank might look for:
Loan Type
Different loan types will have specific requirements. For instance, a mortgage will likely require property ownership and a higher income threshold than a personal loan.
1. Individuals
- Minimum age (usually 18 or 21)
- Nigerian residency
- Regular source of income (employment or business income)
- Acceptable credit history (check your credit score beforehand)
- Existing Sterling Bank customer (advantage in some cases)
2. Businesses
- Registered business entity
- Business bank account with Sterling Bank (advantage in some cases)
- Minimum operational period (e.g., 1-3 years)
- Good financial standing and business plan
- Acceptable credit history
Loan Approval and Disbursement
Here's a detailed look at Sterling Bank's Loan Approval and Disbursement process:
Loan Approval
Timeline
After submitting your application, Sterling Bank will assess your information and creditworthiness. This review process typically takes a few days to several weeks.
The exact timeframe can depend on the loan amount, complexity, and your individual situation.
Factors Considered
Here are some factors Sterling Bank might consider during approval:
1. Credit History
Your credit score and past borrowing behavior play a significant role.
2. Income and Employment
Stable income and employment history demonstrate your ability to repay the loan.
3. Debt-to-Income Ratio
This ratio compares your monthly debt obligations to your gross income. A lower ratio indicates a better ability to manage additional debt.
4. Collateral (if applicable)
For some loans, Sterling Bank might require collateral (an asset used to secure the loan) to mitigate risk.
5. Business Plan (for business loans)
A well-defined business plan showcasing your company's viability is crucial for business loan approval.
Disbursement
Notification
Once approved, Sterling Bank will contact you with the loan offer. This includes details like the approved loan amount, interest rate, repayment schedule, and any specific terms and conditions.
1. Loan Agreement
You'll need to carefully review and sign the loan agreement before disbursement. This document outlines the terms of the loan, including repayment obligations, late fees, and other important details.
2. Disbursement Method
After signing the agreement, Sterling Bank will disburse the loan funds according to the chosen method. Common options include:
3. Direct Deposit
The funds are electronically transferred to your designated bank account.
4. Cheque
You'll receive a cheque payable to you or your business, which you can deposit at any bank. (Less common nowadays)
5. Timeline
The disbursement timeframe can vary depending on the chosen method. Electronic transfers are typically the fastest, while cheques might take a few business days to clear.
