The term Loans & Advances is quit different from each other,Loan could seen as an amount that is in the form of debt given out by a financial institution which either commercial bank, credit union or online lender to another corporate body or an individual in exchange for the future repayment of the same amount and interest over a given time frame.
On the other hand, Advance is fund provided by the banks to individual,firms to meet their short-term requirements which usually less than one year.The advance is generally provided for a shorter duration of time. The bank will sanction this as a short-term loan, an overdraft, cash credit or a bill purchase.
Guaranty Trust bank popularly known as Gtbank provide smart financing options for your business that allows your organization to build on its success and plan for growth.The loan and Advance are usually in form of Build or Buy Loans for Schools,Fashion Industry Credit Designed for Growth, SME Invoice Discounting Finance (SME IDF),Overdraft,Food Industry Credit and QuickCredit for Small Business.
For the purpose of our discussion, we shall look into each loan and Advance package offer by Gtbank .
1. Gtbank QuickCredit for Small Business:
Gtbank QuickCredit for Small Business is a time loan product aimed at financing the working capital (i.e funds needed for day to day needs) of SMEs in the Education (creche, primary & secondary schools) and Healthcare (Hospitals, Retail Pharmacies and Diagnostic Centres)
Features of Gtbank QuickCredit for Small Business:
1. Eligible to prequalified customers
2.The loan has 1.5% per month (16% per annum)
2. Customers can access up to 50% of average annual turnover
3. The Loan tenure is 6 months (12 months for schools)
4. Borrower who doesn’t have corporate account should open one and operate it for 12 months before applying for the credit facility
5. Old Customer must have actively operated a Corporate or Business name account with the Bank for at least 6 months.
What is the maximum loan amount?
The maximum amount customer can borrow on Gtbank QuickCredit for Small Business is N10,000,000.00 while the minimum loan amount is N250,000.00. Customers can access Maximum of 50% of their 12 months average turnover.
How to apply for Gtbank QuickCredit loan
The QuickCredit for Small Business is Available on GAPS and GAPS Lite, Simply select Loans and click on QuickCredit for Small Business on GAPs/GAPsLite platform and follow the prompts.
2. Gtbank Food Industry Credit loan
The GTBank Food Industry Credit is a time loan specially designed to meet the working capital needs of SMEs within the Food and Drinks Industry in Nigeria. The loan offers you a single digit interest rate of just 9% per annum.
Theminimum loan amount is N50,000.00 ad the maximum amount is N2,000,000.00 with 180 days (6 months) tenor.
Please note: The average annual turnover be to qualify for Food Industry credit is N100,000.00.
Features of Gtbank Food Industry Credit loan
1. The highest loan amount is Up to N2 Million
2. The interest rate is 9% per annum interest rate (0.75% monthly)
3. The loan come with Flexible repayment plan spread over 180 days
4. The loan application process has Zero Fees
5. Your Business must be at least 1 year in operation.
Requirements to apply for Food Industry Credit:
1. Your business is duly registered with Corporate Affairs Commission
2. Business should be at least 1 (one) year.
3. Business must have a clean Credit Bureau Report with no unpaid obligations.
4. Business must have a satisfactory CRMS report of owners, sponsors and directors.
How To Apply for Gtbank Food Industry Credit
1. Simply click on Food Credit on GAPS Lite and follow the prompts to complete application process.
2. Loan will be disbursed instantly after successful applications.
3. Gtbank Overdraft
Gtbank overdraft is a line of credit which allows a customer write cheques for more than the actual balance on the account with a finance charge on the excess. It is an open credit which can be used repeatedly until the balance on the account reaches a certain pre-arranged limit with a specific repayment date, usually one year.
The funds is usually available for your use for a tenor of one year but it can be renewed upon satisfactory performance.
4. Gtbank SME Invoice Discounting Finance (SME IDF)
This Gtbank short term borrowing facility which provides a quick cash flow solution to customers business needs. Your business can draw money against invoices (receivables) issued before your clients pay for products supplied or services rendered.
Features of Gtbank SME Invoice Discounting Finance (SME IDF)
1. Maximum of N 50Million (subject to 70% of invoice value)
2. Tenor is 60 days (maximum waiting period of 30 days)
3. Bullet repayment upon maturity of the facility with monthly interest
4. Irrevocable domiciliation of discounted invoice proceeds with GTBank
5. Competitive interest rate.
5. Gtbank Term Loans for Schools
The loan facility is a medium to long term loan aimed at assisting established and well-structured schools in the expansion of their landed properties to meet obvious or anticipated business demand. The tenor spans from 3 to 10 years, giving schools funds up to 400million.
Features of Gtbank Term Loans for Schools
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Facility Type: Term Loans for Schools
Amount: Minimum of 20,000,000
Maximum of 400,000,000
Pricing: Interest rate: Competitive
Management fee: 1%
Commitment fee: 1%
Tenor: Minimum of 3 years
Maximum of 10 years
Repayment: Quarterly repayment of principal and monthly repayment of Interest
Security: Legal mortgage on the property being
financed or alternative property (Buy).
Legal mortgage on an alternative
Equity Contribution: 30%
6. Gtbank Fashion Industry Credit:
The Gtbank Fashion Credit is a time loan specially designed to provide capital funding to SMEs in the fashion industry. It has minimum loan amount of N250,000.00 and maximum loan amount of N5 million with all the financing they need to grow their business.
For you to qualify for this loan facility borrower must in been for business for more than 1 year ad have Minimum average turnover of N500,000.00.
One good aspect this kind of loan package has one digit interest of 9% per annum (0.75% per month) and 360 days (12 months) as maximum tenor.
Features of Gtbank Fashion Industry Credit:
1. The loan amount is Up to N5 Million for your fashion business.
2. Single digit (9% per annum) interest rate at 0.75% per month
3. there is No fees during application process
4. Flexible repayment plan spread over 360 days
5. Customers can access up to 50% of average annual turnover
How to Apply for Fashion Credit
Simply click on Fashion Credit on GAPS Lite and follow the prompts.