What does the process of applying for a loan entail? Find out where the journey of your application from request to disbursement at Access Bank Plc.

1. BANK LOAN APPLICATION PROCESS

2. Outline
• Loan Application Process
• The Approval Process
• The Disbursement Process
• Post Disbursement activities
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3. Loan Application – The Basics
• The need for bank loan may be identified by the customer, a business
consultant or the banker.
• What loan type is applicable to your personal / business need?
Overdraft, Term Loan, Guarantee, Lease etc…
• Are you qualified for a Bank Loan?
Account ownership, Revenue Source, Expertise, Technical know-how,
Business structure etc…
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4. Loan Application – The Basics
Some basic documents required for Loan Application:
1.Application Form / Letter – Amount, Purpose, Loan Type etc.
2.Evidence of Income/Revenue
3.Business Profile / Brochure
4.Bank Statements
5.Audited Financial Statements (if available)
6.Management Accounts/ Statement of Affairs
7.Details of underlining contract or project to be financed
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5. Loan Application Process
• On receipt of customer’s application and supporting documents,
the Account officer or Relationship Manager carry out a preliminary
review to confirm if the request meets the Bank’s Acceptance
Criteria.
• More documents or information may be required
If okay proceed to initiate Approval Request
Not okay inform the customer
This process takes between 24 – 48 hours
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6. Application and Approval Process
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Loan Application
Loan Approval Initiation
First Level Review
Analysis and Review
Approval
Relationship Manager;
Zonal Head; Group Head
Risk Management
Executive Management,
Management Credit Committee;
Board Credit Committee;
Board
Account Officer
Customer
Loan Approval Initiation

7. The Decision – Approved or Not Approved
Character: measured through credit
rating, Credit history, public info
Capacity: Ability to repay the loan
through cash flow from normal
operations
Capital: Shows commitment to the
business and ability to withstand
volatility
Conditions: Operating environments,
Industry growth, etc.
Collateral: Secondary way out ,
location, ability to sell; tangible,
guarantees
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8. The Decision – Approved or Not Approved
Other considerations include:
•The Bank’s Target market – SMEs, Retail, Women, etc.
•The Bank’s Exclusion List – gambling, arms, tobacco etc.
•Risk Acceptance Criteria – experience, counterparty, profitability, key
man risk
•Regulatory Breach – Single Obligor Limits, Sector Limits, etc.
•Defective Loan structure
•Socio Economic / Environmental impact
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9. The Disbursement Process
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]
If Approved, offer
letter is issued,
to communicate
the applicable
terms.
If not, customer
is also informed
formally.
Customer
accepts the
offer
Customer
meets
conditions
precedent to
disbursement
•The Bank
disburse the
loan into the
customer’s
account
•The Bank
disburse the
loan into the
customer’s
account
Customer use
the loan for
the intended
purpose
Customer operates
the account
normally and meet
loan obligations as
and when due

10. Turn Around Time
A number of factors determine the turn around time for the loan
approval/disbursement process.
•Complexity of transaction
•Loan Amount
•Availability of information
•Fulfilling offer conditions
•Documentation issues
The standard turn around time for various loan product is between
48hours and 1 month.
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11. Post Disbursement - Financial/Non Financial
Covenants
• Insurance / Perfection of documents
• Collection Exposure Ratio – inflows into account in relation to the
bank loan
• Minimum Turnover requirement
• Repayment schedule
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