LIQUIDE™ Cash-Backed Overdraft Loan
Product Overview
LIQUIDE™ is a cash-backed overdraft facility that allows GTMB customers to access liquidity against their fixed deposit or VaultPlus Note™ investments.
- Provides an automatic credit line of up to 70% of the invested amount.
- The line is created immediately upon investment, with no extra application process.
- Customers can DIY drawdown anytime via app or online banking.
- Interest and fees apply only when the facility is used.
Target Market
- High-net-worth individuals (HNIs) and mass affluent customers with substantial savings.
- Corporate clients with treasury placements.
- Investors in GTMB’s VaultPlus Note™ or fixed deposit products who need liquidity without breaking their investment.
Product Features
- Loan Type: Cash-backed overdraft
- Collateral: Fixed deposit or VaultPlus Note™ (lien-marked)
- Credit Line: Up to 70% of investment value
- Drawdown: On-demand, DIY through GTMB digital channels
- Repayment: Flexible; automatic debit from deposit at maturity if unpaid
- Tenor: Linked to tenor of the underlying investment
Pricing
- Admin Fee: ₦0 at setup; payable only when drawdown occurs
- Interest Rate: Prevailing investment rate on collateral product + 8%
• Example: If FD pays 12% → LIQUIDE overdraft charged at 20% - Interest Calculation: Daily on utilized amount
- Penalty: None (collateral already held)
Customer Journey
- Customer places funds in Fixed Deposit or VaultPlus Note™.
- GTMB system automatically creates overdraft line at 70% of investment.
- Customer sees available LIQUIDE credit limit in dashboard.
- Customer initiates DIY drawdown via digital channel.
- Drawdown credited instantly.
- Customer repays at will; if not, maturity covers exposure.
Operational Model
System Integration: Core banking tags deposit/note with lien → credit line created.
Risk Mitigation: 100% cash collateral; auto sweep at maturity; daily monitoring.
Regulatory Compliance: Secured lending per CBN guidelines; NDIC deposits insured.
Revenue Model
- Admin Fee (only on utilization).
- Interest Income = Investment rate + 8%.
- Customer Retention = Keeps funds invested with GTMB.
Risks & Mitigation
- Run Risk: Managed by full cash collateral.
- Rate Risk: 8% margin ensures profitability.
- System Risk: Real-time lien marking & auto sweep required.
Product Example
Customer invests ₦10,000,000 in VaultPlus Note™ at 12%.
→ LIQUIDE Credit Line = ₦7,000,000 (70%).
Customer draws ₦5,000,000 for 90 days.
→ Interest = (12% + 8%) = 20% p.a. → ₦246,575 (for 90 days).
At maturity, deposit pays interest, overdraft cleared, balance refunded.
Key Differentiators
- No need to break FD – keep investment running.
- DIY access – instant liquidity.
- Pay only when you use.
- Auto-protection – overdraft cleared automatically from deposit maturity.
Tagline Suggestion
“Invest freely. Borrow instantly. Stay liquid with LIQUIDE™.”
