An Igbo businessman walked into a Lagos bank with an unusual request. He needed to borrow ?5,000 for a business trip to Dubai. Meeting the loan officer, he explained his need for the short-term loan, which he planned to repay in four weeks. The loan officer informed him that the bank required collateral for the loan. Without hesitation, the man handed over the keys to his brand-new Mercedes Benz S Class 500, parked outside.
The loan officer, slightly taken aback, verified the car's documents. Everything checked out, confirming the vehicle’s worth and ownership. The luxurious car, valued at around ?30 million, was indeed a surprising form of collateral for such a small loan. Despite the oddity of the situation, the bank accepted the car, securing the loan as requested.
The bank’s president and officers couldn’t help but chuckle at the scenario. Using a car worth millions as security for a loan of just ?5,000 seemed absurdly humorous. Nonetheless, an employee drove the Mercedes Benz into the bank’s secure underground garage, where it would remain parked for the duration of the loan.
Four weeks later, the businessman returned from his Dubai trip. He went to the bank, repaid the ?5,000 loan, plus an additional ?150.41 in interest. The loan officer, still amused and puzzled, expressed the bank's satisfaction with the smooth transaction. However, curiosity got the better of him, and he voiced a question that had been on everyone's mind.
"Sir, while you were away, we checked your background and discovered that you are a multimillionaire. What puzzles us is why you would bother to borrow ?5,000."
The Igbo man smiled and replied, "Where else in Lagos can I park my car for four weeks for only ?150.41 and expect it to be there when I return?"
The bank staff, initially amused by what seemed to be an eccentric move, suddenly realized the cleverness behind the businessman’s strategy. Not only had he secured his car in one of the safest places in Lagos, but he had also done so at an incredibly low cost.
This story quickly became a favorite anecdote within the bank, a testament to the ingenuity and strategic thinking often associated with successful entrepreneurs. It was a perfect example of turning conventional banking operations on their head to achieve a practical and cost-effective solution.
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