Is this really a good idea?
See below.

UBA introduces Diaspora share loan scheme
Posted Wednesday, June 6, 2007

The Product Details:



1. Objective is to part finance the purchase of blue-chip stocks in the Nigerian Stock Exchange

2. The maximum single obligor limit is =N=60 Million while the minimum is =N=500,000:00.

3. Equity Contribution: Applicants are required to put down equity of 40% while the Bank provides 60% of the funds needed to acquire the shares.

4. The tenor is 12 months with a renewal option

5. Interest Rate: Interest rate is PLR (currently 17 percent)

6. Management fee: 2 % flat of the loan amount and payable upfront

7. The Equity Contribution and the Management Fee must be provided when applying.

8. Repayment: The principal and interest are due only at the end of the 12 months tenor or whenever the customer decides to liquidate the loan, whichever is earlier.

9. The Bank reserves the right to dispose of the shares if there is a 20 percent decline in the value of the customer’s shares or the portfolio, which was acquired using the loan. However, the customer will be informed and there is provision to put in additional equity.

10. The custody of the shares acquired remains with UBA Stockbrokers Limited during the tenor of the loan.

11. Under this scheme, the maximum exposure to any single company(stock) is 10 percent of market capitalization or =N=500 Million, whichever is lower.

The gist of this is that you can open an NRN account with UBA, and then get them to finance your 'road to riches' stock acquisition on a 60/40% basis.