An Account Officer (AO) offers the product to an eligible borrower AO computes for maximum loanable amount. AO prepares a Notice of Loan Approval (NLA) in triplicate. AO keeps a copy of the NLA. The 2 other copies will be given to the Nokia retailer hand carried by the client. Client presents NLA to retailer. NLA NLA Own-a-Nokia Cellphone Loan Retailer NLA
Client picks a cellphone and signs Sales Invoice. Retailer verifies identification of client by asking for an ID and calling the BOH. Retailer keeps both copies of NLA. Retailer sends billing statement, sales invoice and one copy of NLA to the bank. Bank processes the loan release. Bank deposits loan proceeds to the account of the retailer. Retailer issues an OR once payment is received. Bill S.I. NLA Retailer
Number of clients & cellphones sold
More than 70% of clients are individual MF borrowers. Regular loan clients may have access to cheaper financing through credit cards.
Clients prefer mid-range models.
Reason for purchase is for personal use.
A good number of clients buy more than 1 cellphone.
Easy & simple terms
No documentary requirements
Feedback from clients
Simple process flow
Low risk because offered to borrowers with existing relationship
Good marketing tool (incentive for good borrowers)
Feedback from bank
3 branches cannot participate due to lack of nearby retailers
Effects of business slow down felt at the start of the year
Repair of cellphone
Areas of concern
Support & Strategy of Branch Manager and Account Officers