The red light of my BB started to blink – normally I will ignore till I was ready to reply any email or SMS but somehow I was drawn to reading the new mail. The subject and sending platform was discouraging the urgency – “I need help, financially” and it was from my blog. Despite my time management policy, I read the mail that I believe may confirm the course of my life:
Dear Sir,
RE: APPLICATION FOR GRANT/LOAN.
I will like to apologize first for the inconvenience this letter might cause, I had tried to look elsewhere but all effort seems to be in vain. I hereby apply for a loan/grant of N300, 000 (Three hundred thousand naira only). This is to enable me start a small business which will be managed by my wife with my supervision. Find below the analysis of the business and the terms in which I intend to pay back the loan/grant. The loan/grant: A loan/grant of N300, 000:00 (Three hundred thousand naira only) for period of twelve months (a year) tenor. Find below my plan to pay back the loan/grant.
Capital + Interest, to be paid in installment every month for a period of twelve months.
15% per annual of N300, 000 is N45, 000 (based on assumption, it can be review)
Capital + interest = 300,000 + 45,000 = 345,000.
Monthly pay= 345,000/12 = N28, 750
I shall issue twelve different post-dated cheques of my salary account in the amount of N28, 750 to be presented every month on agreed date. With this sir, am capable and confident that I will not default, even if our business cannot pay this which am sure and confident that it will, my monthly salary can afford to pay this. This is just to let you know that I will never default in refunding the money.
Find below the minimum requirement for my proposed business.
FIXED COST:-
GSM Printing Software = N25, 000
Laptop = N50, 000
Printer = N15, 000
Internet Modem = N8, 500
Total Fixed Cost N98, 500:00 (Ninety-eight thousand five hundred naira only)
RECURRING / VARIABLE COST:-
Monthly Internet Connection = N 3, 000
A4 Pre – Printed paper = N 1, 200 (per 500 sheets)
Refill Ink Cartridge = N 4, 000 (per every 5,000 rounds or printed sheets)
Total recurring cost = N 8, 200 (Eight thousand two hundred naira only)
Minimum Ordering Capital of recharge card PINS:-
1000 pieces of MTN 100 = N93, 000
1000 pieces of ZAIN 100 = N92, 000
1000 pieces of GLO 100 =N92, 000
Total minimum Ordering Capital =N 277, 000 (Two hundred and seventy-seven thousand naira only)
Grand total = N 383,700:00 (Three hundred and eighty-three thousand seven hundred naira only).
Presently, I was able to raise N83, 000 (Eighty-three thousand naira only) from my monthly earned (salary). Before now, I wanted to raise the money on my own but the more I delay, the more it is dangerous because another people may venture into the same business in our area before us. There is no fear to whether this business will succeed or not, we (me and my wife) had already surveyed the market for these cards, since this is the only thing we could contribute to save our immediate neighbor from the stress of going to longer distance to get these cards.
I assured you that this business will not fail in anyway because there is no way people will not recharge their phones and by doing that, it is sure that the money will be paid back without you having to chase me to pay you up my debt. Thanks for your cooperation and commitment in eradicating poverty from our nation.
Yours faithfully,
Mr. X
This guy needs help and I have the connection to fulfill his immediate dream – if someone with this attitude and passion cannot get a soft loan to elevate his financial life, then we have a serious problem in Nigeria. The cost on funds is so high that Micro Finance Banks are charging as high as 50% on soft loans.
