Mustapha Mustapha Garba’s Post

KYCs are done to ensure regulatory requirements, for me KYC is a door that allows one to step into his/her customer to know how well to serve the customer. Let me tell you a short story; There's someone I met at his shop during one of our marketing storms. After introducing myself, he reluctantly answered and replied by saying, 'You will just repeat what others say, you shouldn't waste your time' I smiled and told him that I wasn't there to tell him about LOTUS Bank alone but to enlighten him on Non-Interest Banking and probably share how he'll upscale his business. After discussing with him, he was extremely happy though he didn't open an account with us but promised to do so. He leveraged the referrals I gave him to source his stock and occasionally calls me to discuss business trends. After a few months of bonding he opened an account with us and today he's one of my loyal and measure customer. He calls to ask if the money he's withdrawing at a time will affect my balance sheet before going ahead. He has referred me to a lot of people and we kept bonding to the extent we visit one another occasionally. A customer should be a synonym to a family member because they contribute to who we are and what we earn. Happy Customer Service Week #nibwithmmg #bankwithLOTUS #patnerprogressprosper

Happy Independence Day 🇳🇬 No doubt, our Nation and her citizens are experiencing severe turbulence. But I remain a patriotic Nigerian with no iota of regret. God Bless Nigeria 🇳🇬 #nibwithmmg #nigeria64thindependence #bankwithLOTUS

Alhaji. Abdullahi of Shabi Communications sells smart phones, due to the exchange rate his capital will not be enough to meet his customers needs and he buys his stock from Hub 24 communications. Alhaji Abdullahi approaches LOTUS Bank with a request of 10M Murabaha Line Facility to purchase smartphones from Hub 24, stating that he wants a clean up circle of 90 days (3 months). Let's assume that Alhaji Abdullahi meets all the Bank's requirements and gets approval of the 10M. This means that Alhaji. Abdullahi will be appointed as an agent to the Bank which will enable him to source and negotiate for the stock he wants to ensure good quality and pricing, after that he will submit a proforma invoice from Hub 24 for the goods. It can be for the 10M or less. Let's use 10M for the sake of this. The Bank will disburse the amount to Hub24 and purchase the goods then sell it to Alhaji. Abdullahi at the agreed Mark-up rate of 32% per anum which is 2.7% per month. Considering the clean up circle of 3 months, Alhaji Abdullahi is expected to pay the Bank 10M plus the mark up of 8.1% at the end of the third month. After paying at the end of the 3rd Month, he can submit another proforma invoice to the Bank and the circle will be repeated until the year ends. They're two major advantages of a Murabaha Line. 1. Once you get an approval and disbursement is made, even if the MPR rate is increased by 500 basis points, it won't affect your payment. 2. If you exhaust the stock before the end of the clean up circle. You can still purchase another stock with the money before the tenor elapses. Just make sure the money is available to pay back at the end of the agreed tenor. They're other advantages but let stop here today. You can ask questions for more clarification. #nibwithmmg #bankwithlotus #PartnerProgressProsper

As the apex Bank (CBN) increased the MPR with 50 basis points, Interest Rate has now jumped to 27.25%. This will puncture a lot of business tires. Business owners who have existing Loans or Facilities from Banks will receive a notice of an upward review of the rate for their loans or Facilities. Prices of goods will definitely increase because business owners will add the additional cost of money to their expense and that will be considered during pricing. New Loans or Facilities will have high interest rates and Banks will definitely reduce the rate at which they give loans or facilities. This is not as the result of MPR alone, CRR (Cash Reserve Ratio) have been increased with 500 basis points to 50% and Liquidity Ratio retained at 30%. This means that Banks have very little to give loans and facilities, and you know who would be able to secure loans at the moment because no Bank will risk their funds. It's a really tough time for business owners and consumers. We must look out for innovative alternatives. Murabaha (Buy & Sell) or Murabaha Line Product in Non-Interest (Islamic) Banking can do the magic. Murabaha (Buy & Sell) - This is a product in Non-Interest Banking that allows the Bank to purchase an asset that a customer needs and sell that asset to the customer at an agreed mark-up rate within an agreed tenor. This becomes a Line when the Bank approves a certain amount to the customer to draw down and payback within an agreed clean up circle. A clean up circle is the time frame that is agreed between the customer and the Bank for an approved Line Facility to be drawn, utilized and paid back. Let me use a case study to explain a typical Murabaha Line Facility. Check my next post 👉🏾 #nibwithmmg #bankwithLOTUS #partnerprogressprosper