Market Loan

The Market Loan is a short term overdraft facility with a maximum limit of N5Million and tenor of up to 180 days (with a 30 days clean up cycle) targeted at traders in pre-approved market locations who deal in Fast Moving Consumer Goods (FMCG)

Features & Benefits
  • Market Loan is an overdraft productSingle Obligor Limit is N5million subject to a maximum of 25% of the customer’s average monthly turnover for 6 months preceding the loan application date.
Am I Eligible?
  • Applicant must have been in line of business for a minimum of 2 years
  • Applicant must have been in banking relationship with Polaris Bank or any other reputable bank for at least twelve (12) months evidenced by statement of account from other banks.
  • Applicant must be a member of a trade/market association in the marketApplicant must possess shop receipts or shop title (allocation letter or purchase receipts)
  • Applicant must be engaged in the sale of fast moving goods or goods that have tendency for high repeat purchase and are easily realizable in event of default.
  • Applicant’s place of business must be close to Polaris Bank’s branch location.
  • Positive CRMs and two positive credit bureau checks
How do I apply?
  • Submission of application letter by the customer.
  • Execution of Stock hypothecation agreement backed with schedule of assets to cover 150% of facility amount and any other document(s) required to create a charge on the pledged assets.
  • Execution of bill of sale on pledged asset (shops) backed with valuation report. Shop value must provide a minimum coverage of 150% of facility amount.
  • Execution of overdraft agreement form.
  • Execution of personal guarantee backed by notarized statement of net worth by principal promoter of the business for limited liability companies.
  • Execution of board resolution accepting terms and conditions stated in the facility offer letter for limited Liability companies
  • Credit Life Insurance on the life of the Obligor for the loan amount to cover death and Permanent Disability noting Polaris Bank as first loss payee.
  • Opening of a charged Savings Account by the Obligor.
  • Customer must execute a Standing Instruction as part of the pre-approval documents authorizing the Bank to automatically transfer 0.5% (1% for 90days) of the loan amount on a daily basis (excluding Sundays) from their operative account to the charged savings account. Central Operations Loan team will set-up the standing instruction when setting up the overdraft on the account. OR a direct debit mandate set-up on the system to automatically effect the transfer from customer's operative account to the charged savings account
  • Undertaking by customer to domicile sales proceeds to the Bank throughout the duration of the loan
  • Full KYC Including home address verification, confirmation of the shop Location, size and line of business by the Business Team.
  • Evidence of payments of market/association monthly dues
  • Documentary confirmation of shop ownership/ rental and line of business to be verified and validated by the Business Team
  • Letter of undertaking to achieve a minimum turnover of 200% of facility amount

In addition, borrower will provide an undertaking to:

  • Bear the full cost of Insurance, charge on pledged assets and recovery if the need arises.
  • Notify the Bank ln the event of change ln Business address/Residential address or relocation abroad.
  • obtain all necessary, Insurance policies with the Bank's interest duly noted as first loss payee
  • Adhere to a monthly turnover covenant of a minimum 200% of the facility limit, which will be aggregated at the expiration of the facility and used as decision criteria where facility renewal is sought by the customer