WITH the introduction of a few key value propositions that are expected to help customers overcome obstacles and fulfill their ambitions for a better life, Standard Lesotho Bank updated its installment to income ratio to 60 percent.
May 24, 2023
4 min read
STD Lesotho Bank introduces key value propositions to entice customers
Standard Lesotho Banks' Head of Personal and Private Banking, Rethabile Motsoahae
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The customer's loan eligibility is determined using the installment-to-income ratio.
Customers, especially those working in the public and private sectors, can now borrow more money than they previously could.
“We created this modification to make it possible for Basotho to use our loan solutions to grow wealth, specifically by purchasing assets and taking care of urgent necessities like paying school fees, launching a business, or developing an income-producing property.
“Standard Lesotho Bank still leads the way in offering its clients digital loans where customers are able to get loans on their digital channels such as mobile apps, internet banking, and mobile banking.
“Customers can get instant loans at the click of a button through those channels. This is one of the ways that we have radically transformed borrowing for our clients. And we believe this has made the experience seamless and convenient,” the institution’s head of Personal and Private Banking, Rethabile Motsoahae said on Tuesday.
On the other hand, the new investment opportunities are in the home services, automotive, and assert finance sectors.
In terms of personal loans, the bank is still committed to doing so in a responsible manner by making sure that borrowers can continue to meet their commitments and maintain a comfortable standard of living while repaying their loans. The bank has improved its installment-to-income ratio for this reason.
As part of its secured lending services, the bank also provides home loans, auto loans, and assert financing, allowing customers to receive loans to support claims. The bank can satisfy the requirements of its customers thanks to these solutions.
“In the home loan space, for example, I am happy to announce that we have also changed our ITI, which we have also increased to 60 percent. Meaning that customers who could not ordinarily afford to have a home loan can now afford it. It also means that clients, even if you were able to afford a home loan, can actually now acquire a home or an investment property at a higher value than before,” Motsoahae added.
The length of the bank's house loans has also been extended from 20 to 30 years. Customers can now have a longer payback horizon with affordable installments and sufficient spare money, according to this development. This is viewed by Standard Lesotho Bank as a significant development, particularly for those who are just entering the workforce and will be able to purchase their dream homes with the comfort of making manageable monthly payments.
The bank typically funds vehicles, trucks, yellow plants, and other types of machinery that have serial numbers in the area of automobile and asserts finance.
Personal clients can purchase this equipment using their pay stub; they are not required to operate a business.
“It might be a business-starting tool, a computer, or a sewing machine, for instance. I think you all recognise the positive impact Standard Lesotho Bank is having on Basotho society.
“We firmly think that by providing the proper loans for the right purposes, we can improve the lives of Basotho households, which will ultimately lead to a recovery of the economy as a whole.
“Our client-centric loan solutions should be used by our clients to build wealth,” Motsoahae also said.
Meanwhile, the bank is running a campaign between now and the end of August specifically for these enhanced lending propositions.
The bank has added some incentives to create enhanced value for clients and Basotho at large and enable them to change their lives for the better when they take advantage of some of these lending solutions.
In this period between now and the end of August, clients will get a guaranteed cash back amount ranging from M5 000 to M20 000 when they access unsecured personal loans with a minimum of M150 000.
With this cash back, together with the loan amount, customers can use the money to invest in something worthwhile, such as buying an assert, paying for school fees, buying a gadget, or even paying for furniture.
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In the home loan space, the bank has also included some incentives as part of the campaign.
Clients who take up facilities in this category between now and the end of August will also get a guaranteed cashback amount ranging from M10 000 to M30 000 when they obtain a home loan solution with a minimum amount of M100 000 at the bank.
With this cash back, home owners can opt to use the money to cover their insurance premiums, pay for their valuation reports, legal costs, and all associated home loan processing costs.
On the vehicle and assert front, the bank has provided a first-month payment holiday for every customer that buys a car within the campaign period.
“Here, we also have cash backs; if a customer takes up our vehicle and asserts finance facility between now and the end of August, all our clients will get a guaranteed cash back between M5 000 and M15 000. With this cash back, our new vehicle owners can opt to use this money to cover annual insurance premiums, purchase some extras for the vehicle, or pay for fuel for the whole year.
“In addition to these enhanced offerings, we are also running a competition during this period of the campaign whereby all clients who have taken any of these facilities will have the opportunity to be entered into a draw and stand a chance to win one of the five cash prizes amounting to M20 000,” Motsoahae noted.