How To Apply For Unity Bank Loan: Requirements, Procedures – Unity Bank is one of the top commercial banks that provides loan facilities to individuals and businesses. Be it to direct or visiting customers, loans can be disbursed if the customer grasps the prerequisites and adheres to the correct protocols.
This all-inclusive guide will direct you through the entire process of obtaining a loan from Unity Bank, ranging from the criteria for eligibility to the stages of application and the necessary documents. This article will give you the essential information you need to present a complete and thriving loan application whether it is for personal, business, or agricultural purposes.
How To Apply For Unity Bank Loan: Requirements, Procedures
Here, we outline detailed criteria to applying and obtaining loan from unity bank. The documents required, available loan options, percentages or charges, as well as the practical application procedures have been highlighted here. Read On!
Eligibility Criteria
Prior to requesting a loan, it is important to confirm that the eligibility standards established by Unity Bank are met. Fulfilling these prerequisites will result in a streamlined application process and a heightened likelihood of approval. Listed below are several of the critical criteria that must be satisfied:
Be a Nigerian citizen or resident with valid identification documents. Foreigners require additional paperwork. such as
- A Duly completed Non Resident Nigerian (NRN) Account Opening Form
- A recent passport photo with full face forward
- A valid Nigerian regulatory Identity card ID OR notarized foreign ID card with an expired Nigerian regulatory ID
- Copy of any of the following as proof of address:
Notarized utility bill or stamped bank statement issued within three months showing foreign address;
If the Notarized Foreign ID bears the same address as the utility bill, then the utility bill may not need to be notarize. Unity Bank Loan
- Must Not be less than (18) years, and 21 to qualify for personal and business loans respectively.
- Must have a continuously stable source of income which can enable the repayment. Salary earners will provide the last 3 month’s statements while self-employed will present their business registration and financial statements.
- Must Have a satisfactory credit score and history. Those with poor credit history may need a guarantor.
- Must be ready to Provide acceptable collateral for secured loans. Property, jewelry, shares etc. are allowed as collateral.
- Must Meet any additional criteria specific to the loan product you are applying for.
Required Documents
Unity Bank will require you to submit certain documents along with the loan application form. Keeping these documents ready will make the application procedure quicker. Here are the common documents needed:
- Duly filled and signed loan application form
- Copy of valid ID card (national ID, driver’s license, voter ID, passport etc.)
- Proof of residence (utility bills, lease agreement etc.)
- Bank statements for the last 6 months
- Salary slips for the last 3 months or business registration documents
- Audited financial statements for business loan applicants
- Statement of purpose detailing loan requirement
- Quotations from vendors if the loan is for asset purchases
- Collateral documents like property valuation reports
- Additional KYC documents may be needed in some cases
Select Loan Product
Knowing the type of loan suitable for one’s financial need is important because this will determine subsequent approval and disbursement. In order words, all loan options have financial limits and choosing the wrong option will qualify an applicant for limited funds if approved. Unity Bank offers a wide range of loan products catering to different financing needs. You should select the appropriate loan product based on your specific requirements regarding loan amount, tenure, interest rate, repayment schedule, fees, collateral, and other terms and conditions. Some of the major loan products offered by Unity Bank include:Unity Bank Loan
Personal Loans: Loans up to ₦10 million for individuals for purposes like home renovation, vacation, weddings etc. Flexible 12-60 month tenure.
SME Loans: Loans up to ₦100 million for small businesses for working capital, asset acquisition, business expansion etc. Collateral required.
Agricultural Loans: Loans for farmers to purchase equipment, invest in infrastructure etc. with minimal interest rates.
Auto Loans: Financing up to 100% of vehicle cost. Available for brand new and used cars, with flexible repayment up to 5 years.
Mortgages: Long-term financing for home purchases or construction, with loan amount depending on property value. Up to 20 year repayment period.
Choose the right loan product based on your specific borrowing needs and eligibility. The bank’s customer service can also guide you in selecting the most appropriate option.
Understand Interest Rates, Fees and Charges
Before applying for a loan at Unity Bank, it is crucial to have a thorough comprehension of the applicable rates of interest, costs, and fees. Small business loans start at a yearly interest rate of 10%; however, the interest rates for individual loans vary from 16% to 28% per annum. Mortgage rates are typically around 16%. The bank also charges a processing fee of up to 1% of the loan amount. Early repayment attracts penal charges. Therefore, it’s better to know the total costs of the loan before making an informed borrowing decision.
Submit the Application at the Branch
After preparing all necessary documents and understanding loan terms, submit the physical loan application at the nearest Unity Bank branch by meeting the branch manager and providing all supporting documents. You would be briefed for any additional documents needed. One might obtain the loan application form from the bank’s website and submit it at the designated branch as required. Don’t forget to obtain an acknowledgement receipt. Clarify any questions regarding the application process.
Follow Up on Application Status
After submitting the loan application at the Unity Bank branch, follow up with them regularly on the status of your application. The typical loan processing time ranges from 2-6 weeks but can vary depending on the loan amount and complexity of the application. You can track your application by calling or visiting the branch. The credit team may reach out to you for any further documents or clarifications needed during the process. Be promptly responsive to any queries to prevent delays.
Receive Loan Approval Letter
After review and approval of your loan application by Unity Bank’s credit team, an approval letter would be sent to you via message or email. The letter will detail the exact loan amount, interest rate, repayment timetable, disbursement date, and other relevant terms and conditions relating to the authorized loan. It is advised that you review the letter carefully and address any doubts with the branch before accepting the loan terms.
Execute Loan Agreement
If you accept the loan terms, the next step is to execute the final loan agreement document and other legal paperwork. Visit the bank branch on the specified date along with the originals of documents submitted with your application. Read the agreement carefully before signing to clearly understand the loan covenants. The agreement formalizes your borrowing relationship with the bank. You will also be required to set up a direct debit authorization for loan instalments.
Receive Loan Disbursal
Once all documentation is completed, Unity Bank will disburse the approved loan amount directly to your linked bank account. Processing fees and other upfront charges will be deducted from the loan amount before crediting the net proceeds to you. If the loan is for purchasing any asset, the payment can directly be made to the vendor. You will start repaying the loan as per the frequency mentioned in the agreement. Make sure to repay instalments on time to avoid any penal charges.
Conclusion
In summary, To obtain a loan from Unity Bank, one must follow several steps. At first, the claimant should make certain that they fulfil all of the qualifying standards and acquire the required paperwork. Secondly, they should choose an appropriate loan product that suits their needs and submit the application at a branch. Thirdly, the applicant must keep track of the application status and respond to any queries promptly.
Fourthly, they should review the approval terms, sign the agreement, complete documentation formalities, and finally obtain the loan disbursement. By completing these procedures proactively and submitting complete paperwork, the applicant can ensure a smooth loan application process with Unity Bank and secure financing for their needs.