About the Loan
Asset-Backed Loan (ABL) is a secured credit facility that enables you to access funds by pledging your Fixed Deposits, Treasury Bills, or Federal Government Bonds as collateral—without liquidating them.
Features and Benefits
- Access funds without selling your investments while you continue earning returns
- Fast processing and disbursement
- Loan amount based on value of pledged assets
- Attractive interest rate
- Minimal documentation requirements
- Tenor up to 12 months with rollover option
Eligibility Criteria
Customers with active:
- Fixed Deposits
- Treasury Bills
- Federal Government Bonds
Documentation Requirements
- Duly completed Loan Application Form (LAF)
- Customer request letter
- Original investment certificate
- Letter of Set-Off / Sell-Off / Asset Hypothecation Agreement
- Memorandum of Charge over investment
- Two clean credit bureau reports and CBN CRMS
- Evidence of transfer to Cash Collateral Account (UBA investments)
- Confirmation of lien from United Capital (if applicable)
How to Apply
- Speak to your Relationship Manager or visit any UBA branch near you
Frequently Asked Questions
Explore our comprehensive FAQs to learn all about UBA Asset-Backed Loan, including how it works, eligible assets, loan requirements, and more. Get the details you need to make informed decisions.
What is the UBA Asset-Backed Loan?
It is a loan that allows you to access funds by pledging your Fixed Deposit, Treasury Bills, or Federal Government Bonds as collateral, without liquidating your investment.
Who is eligible?
UBA customers who hold:
- Fixed Deposits with UBA, or
- Treasury Bills / Federal Government Bonds held with UBA or United Capital Nominees.
Do I need to liquidate my investment to get the loan?
No. Your investment remains intact and continues to earn returns.
What assets can I use as collateral?
- Fixed Deposits
- Treasury Bills
- Federal Government Bonds
How much can I borrow?
Your loan amount depends on the Loan-to-Value (LTV) applicable to the pledged investment.
What is the interest rate on the loan?
The interest rate is 2.5% and 2.6% per month for Treasury Bills and Federal Government Bonds, respectively. A minimum spread of 10% (per annum) is maintained for Fixed Deposits.
What documents are required?
Minimal documentation, mainly:
- Original investment certificate
- Loan application form
- Duly executed Letter of Lien/Set-Off and Charge
- Offer letter acceptance
Will I still earn interest on my investment?
Yes. You continue to earn returns on your investment while the loan runs.
How is repayment structured and what is the loan tenor?
Repayment may be structured monthly, quarterly, half-yearly to suit the customer’s needs. Bullet repayment is allowed for a max period of 6 months.
The loan tenor is up to a max period of 12 months with an option to rollover.
What happens if I default?
The bank has the right to liquidate the pledged investment to recover the outstanding loan amount.
Why should I take this loan instead of breaking my investment?
You get the funds you need without losing your investment returns or future value.
How do I apply?
Visit any UBA Branch or speak with your Relationship Officer to start the process.