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 procedure 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
(c) Cross-checking
of posted transaction and their corresponding slips: At the beginning of every
workday, the total bank transaction of the previous 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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