Access Bank's Small Ticket Loan: what you should know

Access Bank has been aggressively promoting its Small Ticket Loan to customers, particularly salary earners, with promises of helping them combat inflation or settle bills. However, this seemingly attractive offer conceals a loan trap with an exorbitant 65% annual interest rate. I fell victim to this trap when I took out a loan that advertised a 10% annual interest rate. I naively believed that the interest would be calculated yearly and distributed evenly over the loan term.

To my surprise, during the first repayment, the interest deducted from my account exceeded even the principal repayment. This left me bewildered, assuming they had deducted the entire interest upfront since the amount debited matched the stated 10%. My concerns grew when I discovered on my Access More app that I still had to pay additional interest in subsequent repayments. I immediately contacted the bank's customer care for clarification and was disheartened by their response.

I learned that the interest was calculated at a rate of 10% on a reducing balance, not annually as I had initially understood. This resulted in an effective interest rate of 65% per annum. In practical terms, if you borrow 100k, you will need to repay a staggering 165k. Repayments are expected to commence from the first month, which can be challenging, particularly if you plan to repay solely from your salary. Regrettably, this crucial explanation may not be provided before taking out the loan.

Therefore, it is essential to exercise caution before considering this loan option. Ensure that you thoroughly understand and can comfortably meet the repayment terms, especially during the initial months. It is crucial to make an informed decision that aligns with your financial capabilities.

Stay informed and proceed with caution.

This is absolutely true.

Dexpro:
This is absolutely true.

It is necessary for people to understand before jumping at it.

That is wickedness, even notorious LAPO and co don't charge that much.

Wow. Thats loan shark style. Gtb quick credit is the very affordable. Abt 3% a month

Dem call me like day before yesterday o

jideflash:
Wow. Thats loan shark style. Gtb quick credit is the very affordable. Abt 3% a month

exactly a loan shark system!
You can imagine taking #500, 000 loan and having to pay back #825,000 to a bank helping its customers to solve their problems.

This is very true .Am still battling it now. Even what was depicted on the schedule was not wht i am paying .Like a 419 thing
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This just happened to me