a. Activities as a credit officer
b. Activities as a cash officer
c. Activities as customer service officer
d. Activities as a finance/Accounts officer
a. Activities as a credit officer :
In EBSU MFBL, the credit dept gives out two major types of loans
i. Business loan
ii. Salary loan /Over draft
Business loan is the loan given to customers for business purpose. In business loan the customer must present collateral to the bank. Since majority of the customers are Ebonyi State University staff, and the bank belongs to the University, staff salaries are paid into the bank. This stands as collateral for the customers.
However, customers who are not EBSU Staff must present a developed land or property as collateral
It can be farmers coming together to obtain loan. These farmers must know themselves and each person must have a guarantor.
Procedure for obtaining salary loan
· The customer must have a current account with the bank and must haye actively operated the account for at least three months.
· The customer must obtain and complete the loan application form.
· The customer must write an application letter.
· He /she must provide a senior staff of the university of level 13 or above as guarantor. If the customer is not a staff of the university, he /she must get a renowned or legitimate business man with landed properly as guarantor
· Before the submission of application and completed forms, the customer is educated on what it means to obtain loan and the penalty involved in any case of default
· The application letter must contain the purpose of the loan, the means of repayment, the required sum and the loan duration
Micro leasing charges
Interest : 20% (staff) and 30% (non-staff)
Management fee : 1%
Commission on turnover (COT) : N5.00per mile
Loan inspection
This involves visiting the customer’s farm or business place to ascertain the repayment ability of the customer if granted the loan
The guarantors are also visited to see if they have what it takes to be guarantors
After the visit, I then prepare loan appraisal form depending on whether the loan is for agriculture or building project. All these will be attached to the customer’s file and passed to the loan committee through the head of credit.
If the loan is N100,000 and below, the file moves from the credit officer to the head of Credit , then to the head of Internal Control / Risk Management, and then to the managing director for approval or disapproval depending on the comments of he afore –mentioned officers. But if the loan is above N100,000 the file moves on to the bank’s credit committee for approval /disapproval .
When the loan is approved the customer’s account is then credited with the sum after all charges must have been deducted. The tenure for business loan is maximum of 12 months, and the interest is spread across the 12 months for ease of repayment. The bank adopts depreciating method of interest repayment . a grace period of I month is given. This is the period given to the customer before repayment starts.
Commission on turn over COT is calculate thus:
N5.00 per mile (N5.00 for every N1,000)
Therefore, COT on N100,000 =N500 + 1% management fee
1% management fee =N1000
Finally the customer goes home with N98, 500
Computation of charges on business loan
For example:
If a farmer is granted loan of N100,000 to pay back within 12 months at interest rate of 20% as a university staff,
Principal is calculated thus:
100,000/12 =8333.33
The principal for every month =N8333.33
Interest is calculate thus: AT 20%
100,000 x 20/100 =200,000
20% of N100,000 =N20,000
This is further divided into 12 months 20,000 /12 =1666..66 (monthly)
Therefore, the farmer pays back N9,999.99 for the first month and it reduces in subsequent months.
The same pr
ocedure is applicable for a non staff with 30% interest charge
[[
LOAN REPAYMENT / AMORTIZATION SCHEDULE
Customer |
||||||
Principal |
100,000.00 |
|||||
Interest |
0.3 |
|||||
Tenor |
12 |
|||||
Month |
Opening |
Principal |
Interest |
Total |
Closing |
|
Balance |
Repayment |
Payment |
Repayment |
Balance |
1% mgt fee |
|
Jan-12 |
100.000.00 |
8,333.33 |
2,500.00 |
10,833.33 |
91,666.67 |
1,000.00 |
Feb-12 |
91,666,67 |
8,333.33 |
2,291.67 |
10,625.00 |
833,33.33 |
|
Mar-12 |
83,333,33 |
8,333.33 |
2,083.33 |
10,416.67 |
75,000.00 |
|
Apr-12 |
75,000.00 |
8,333.33 |
1,875.00 |
10,208.33 |
66,666.67 |
|
May – 12 |
66,666.67 |
8,333.33 |
1,666.67 |
10,000.00 |
58,333.33 |
|
Jun-12 |
58,333.33 |
8,333.33 |
1,458.33 |
9,791.67 |
50,000.00 |
|
Jul -12 |
50,000.00 |
8,333.33 |
1,250.00 |
9,583.33 |
41,666.67 |
|
Aug – 12 |
41,666.67 |
8,333.33 |
1,041.67 |
9,375.00 |
33,333.33 |
|
Sep -12 |
33,333.33 |
8,333.33 |
833.33 |
9,166.67 |
25,000.00 |
|
Oct- 12 |
25,000.00 |
8,333.33 |
625.00 |
8,958.33 |
16,666.67 |
|
Nov -12 |
16,666.67 |
8,333.33 |
416.67 |
8,750.00 |
8,333.33 |
|
Dec. – 12 |
8,333.33 |
8,333.33 |
208.33 |
8,541.67 |
||
100,000 |
16,250.00 |
116,250.00 |
iii. Salary loan /over draft: this is a short term loan given only to customers who receive their salaries through EBSU MFBL.
This is a loan granted when a customer has an urgent need for money and his account balance cannot carry the said sum. The bank offers this loan in anticipation of withdrawing it as soon as the next salary is paid into the customers account .
The bank cannot grant any O/D above N150,000. O/D granted any customer is dependent on whether his/her salary can carry all the changes.
Procedures for obtaining salary loan.
– The customer must have a salary account with the bank
– He /she must be sure that his / her account is on debit
– He/she must write an application, stating the required amount, purpose of loan, means of repayment, normally through next salary
– He/she will complete the overdraft application form
On submission, the file is appraised by the credit officer and passed to head of Credit for approval or disapproval. Such loan is disproved if the customers salary cannot be take care of all the charges and deductions, However, the customer is always advised to reduce the required sum to what his/her salary can carry
EBSU MFBl charges on overdraft (OD). Processing fee :
Below N10,000 = N750
N10,000 to N19,999: N1500
N20,000 and above =N2500
e.g . A farmer who is granted over draft of 20,000 will be charged N2500 +100=N2600 only.
The tenure for salary loan is max of 30 days
COT= N5.00 per mile
b. Activities as a cash officer :
The cash unit deals with cash vault-out and cash vault- in, receiving and payment of cash from /to customers, Balancing of physical cash with system cash, and disbursement of cash advance (money used to run the day to day activities of the bank).
In the morning, two persons go into the vault and vault out a certain amount for the day. The money is handed over to the cashiers and it is recorded as vault-out in the cash register.
After the day’s business, Vault-out – Payments + Cash advance + Deposits = vault-in. The vault-in must balance with system balance:
I receive deposits from customers by stamping and signing on their deposit teller, the teller is triplet bank copy (white) customer copy (Blue) and control copy (pink) I ensured that tellers are well completed .
I also paid cash to customer. I scrutinized the cheque and confirm the account balance of the customer before paying. We also carry out cash shipment from and to our account in other banks.
Activities as a customer service officer
In the banking sector customers relationship officer is a front office staff that entertains all forms of enquiry from the clients (customers). The Customers relationship office is the first point of call of the bank with the public who gives information about the Banks products and services and renders satisfactory customer relationship. As a customer’s service personnel, I performed the following:
i. Opening of account for customers
ii. Issuance of cheque booklets on request
iii. Stop orders
iv. Computation of interest rates
v. Statement of accounts
vi. Checking of account balance and account numbers
vii. Sales of scratch cards
i. Opening of account
Account opening forms the major activity that occupies customer relations officers (CRO) job which takes some steps as follows:
A customer is given an account opening form which the customer completes and returns. On return of the completed form, I reviewed the form and accompanying documents and check if they are complete.
If documents are complete, I prepare the document and forward them to the Head of transaction for signing off. If the documents are not complete I inform the customer about the missing item and advice accordingly.
I carry out due diligence to make sure that the customer’s information comply with KNOW YOUR CUSTOMER (KYC).
When all these necessary documents are complete, Head of transactions or Branch Manager signs off the documents, and account is opened. After which I inform the customer of the account number and issues letters, identity cards, saving passbook, withdrawal booklets, and cheque booklets
as the case may be.
Finally, all account particulars/mandate are filed and labeled and kept safely.
Current accounts
Current account is a type of account maintained for customers in which teller is use to pay in money and cheque is use for withdrawal. Statement of transactions involving these accounts is prepared for the customer on request. Bank charges commission on turn over (COT) on current which is N5 on every N1000 credited into the account. Customer can obtain loan/overdraft with current account.
Documents required for opening cooperate current account
– Duly completed Bank application forms.
– Passport photographs
– Duly completed mandate cards
– 2 reference forms duly completed
– identification of signatories–international passport/drivers license
Documents for personal current account
– Duly completed bank application form
– Two (2) passport photographs of signatory, with name and signature at the back
– Two duly competed mandate cards.
– Two (2) reference form duly completed
– Utility bill
– Drivers license
– International passport. And minimum opening balance of 2000
Savings accounts
A saving accounts is an account maintained for a customer with the aim of encouraging small savings on which interest is paid. Money is paid in with deposit slip and withdraws with withdrawal slip. Customer cannot get loan/overdraft with savings account.
Documents for personal savings account
– duly completed application forms
– duly completed mandate cards
– valid ID
– 2 passport photography
– the banks ID card form
– minimum of N2000
ii. Issuing of cheque book
If a customer’s cheque booklet is exhausted, I will issue the customer a cheque requisition slip, which the customer fills and signs on. I then send the slip to the software maintenance officer who prepares another cheque booklet. The slip is endorsed by the officer who produces the cheque and is sent to the head of Operators who debits a fee of N1000 from the customers account. After the fee is debited, I will collect the cheque booklet and register it into a cheque book collection register which is filled and signed by the customer and then he/she collects his cheque booklet.
Counter cheque is issued for N300 per leaf.
iii. Stop order:
Stop order is done when a customer gives an order for a certain instrument to be stopped with a written instruction, as a customer relations officer, I receive the letter and verify the request. The letter will be time-stamped, then I confirm the signature, if correct I then pass the letter to the operations manager for authorization. After which the cheque number is taken and the account is blocked immediately.
iv. Computation of interest for savings account deposit.
When I was posted into saving account deposit section, I participated in calculating interest for customer. This is done by staff in savings deposit account monthly on individual account with two percent interest (2% interest ) to each account. Eg if a customer has 50,000 as his total balance, the interest will be calculated thus:
2 x 50,000
100 1 = N1,000
v. Processing of cheques and contra – vouchers:
This was done at my stay in current deposit account. Here, before cheques goes to cashier for payment, it first passes through I.T. Staff. Who vets the cheques, process it for signing and forward it to casher for payment
N.B:
Contra –vouchers are those vouchers used to run internal work in the bank, it exist in credit and debit forms. These vouchers are not used to cash money at the counter but can be used to credit or debit customers account in accordance with the instruction.
d. Activiteis as A Finance/Accounts Officer
Here, we hold the key to our relationship with other banks .I was in charge of the banks account with other banks.
I receive drafts and post them, receive chaques and post them, then I go to other banks where we have account and lodge in the cheques and drafts. I record all transacts between EBSU MFBL and other banks. We prepared bank statements account and submit to CBN on monthly basis.
Minor activities performed
My minor activities in the Bank include the following:
– Typing and printing of document using computer
– Separating of daily posted deposit slips into different classes of accounts.
– Cross-checking of posted transactions and their corresponding slips.
(a) Typing and printing of document: I typed letters or any necessary document required by the bank in most cases the manager’s secretary was absent.
(b) Separating of daily posted deposit slips into different classes of accounts: at the beginning of everyday, before the bank is opened to customers, I pack out all the box teller copies from the box and lock the box back. I separate the posted tellers into savings
revious day is printed out and kept with its corresponding vouchers, receipts, tellers and cheque into an envelope and give to a member of staff to cross-check, I separate the vouchers and all other document into debit types and credit types. If I collect a debit voucher for instance, I will look for its corresponding posting in the computer printout and check if its details in the physical vouchers taller/corresponds with the details which was posted.
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