Sterling Bank Plc has announced a partnership with RSL Derivatives Global Services Limited to help Lagos residents solve their accommodation rent difficulties.
The scheme, known as ‘rent-a-month’, according to the bank, creates an opportunity for prospective and existing tenants, who belong to the working class, and self-employed professionals to access rent finance and pay on a monthly basis over a maximum period of two years.
The Chief Financial Officer, Sterling Bank, Mr. Abubakar Suleiman, said at the inauguration of the product on Wednesday in Lagos that the ‘rent-a-month’ scheme was a revamped edition of the bank’s rent finance facility.
He said, “As we are all aware, rent in Lagos is always paid in advance, either for a year or two. For some tenants, it is difficult to raise the rent amount when it is due. The rent-a-month scheme enables eligible individuals to solve their rent problems by taking a facility for the tenor of the rent, which they can now repay on a monthly basis, thus making house rent convenient and affordable.
“Sterling Bank has partnered with RSL Derivatives to expand the reach of this attractive product to all eligible individuals, while fully securing the bank’s exposure. RSL Derivatives facilitates the availability of these facilities to eligible customers, while indemnifying the bank against the risk of default.”
Suleiman said that the partnership ensure that the bank could have a wider reach, without the fear of default, adding that the role of RSL Derivatives was to pre-qualify interested customers using agreed standards so as to ensure that all recommended customers met the bank’s credit risk criteria.
The Group Head, Consumer Lending, Sterling Bank, Mrs. Kike Kuponiyi, said all the customers would pay before accessing the facility was 20 per cent equity contribution.
“The days of looking for that rent lump sum money are over. With this scheme, you can now access a convenient alternative product that pays your rent in advance and allows you to repay over 12 months,” she added.
The Managing Director, RSL Derivatives, Mr. Lekan Abiola, said the scheme was introduced at an appropriate time, adding that the current housing deficit in the country was 16 million units and would require N56tn to solve.
He emphasised that having an effective rent market had become imperative.