FirstBank, Pointek launch device loans at 3% interest over six months
- FirstEase lets FirstBank salary account holders buy phones, laptops and appliances from Pointek and pay over six months.
- Customers pay 3% interest, plus 2% for insurance, and a 30% commitment fee upfront.
- The bank pays Pointek the remaining 70% and the product can be delivered the next day.
FirstBank customers who receive their salaries through the bank can now buy phones, laptops and household appliances from technology retailer Pointek and spread the cost over six months, under a new buy-now-pay-later scheme called FirstEase.
The partners announced the product this week. It is aimed at salary earners, professionals and business owners who find it hard to pay the full price of a device at once.
To qualify, a customer must have a FirstBank account where salary is paid, with at least three months of account history and activity, according to the bank.
How the payment works
Customers pick a product through the FirstEase icon on the FirstBank mobile app or on Pointek's app, then pay a 30 percent commitment fee. FirstBank pays the remaining 70 percent directly to Pointek, which processes the order and can deliver the following day.
The financing carries 3 percent interest, and repayments can be spread over a maximum of six months. Independent reported that customers also pay an additional 2 percent for insurance, while product prices stay the same as for those paying outright. Customers who prefer to pay in full can still do so.
Abednego Ugwueke, FirstBank's group head of E&RP, said the scheme was built for an age when devices need more memory and speed, and therefore cost more.
"It becomes increasingly difficult for people to be able to cough out what is required to buy a device at once," he said.
Chukwuka Okonkwo, head of personal banking at FirstBank, said no other lender in the market offers the service at 3 percent. The bank said the offer builds on its existing digital lending products, including FirstAdvance, FirstCredit and Agent Credit.
Godwin Ajala, director of business at Pointek, said the partnership helps more Nigerians use technology to improve their livelihoods. Pointek currently runs more than 24 offices across 13 states.
What happens next
The partners said the scheme could be expanded depending on how it performs and on customer demand. FirstBank said it will give customers information on eligibility, how to apply and repayment terms so they can borrow with clear eyes.
For a worker who needs a laptop or phone but cannot raise the full amount, the deal spreads the cost over six months. Still, it is a loan: missed repayments carry the usual risks of borrowing, and the 30 percent commitment fee means the customer must find that money before the device is released.
