By Cynthia Alo
VBank, a leading digital bank managed by VFD Microfinance Bank and Artsplit, an art trading technology company, have launched an Art-based loan product.
The innovative financing solution is intended to empower art collectors, galleries, and dealers by allowing them to access capital for a variety of purposes by leveraging the value of their artwork.
It also provide a unique opportunity for art enthusiasts and businesses to maximize the value of their art collections without having to sell valuable assets.
The product allows borrowers to keep ownership of their artwork while obtaining a loan backed by the appraised value of the artwork.
Under the offering, VBank will offer the loan facility at 30% per annum with loan limits of N12 million and N60 million for individuals and corporates, respectively, Artsplit will validate provenance, value the artwork and guarantee the loan at 3% fees, custodian fee of 0.5% and additional 1% insurance charge.
Speaking to journalists on the product, Mr. Gbenga Omolokun, Chief Executive of VBank, stated: “We are thrilled to introduce our Art Based Loan offering which bridges the gap between art and finance.
“Our ground-breaking solution enables art collectors and businesses to maximize the value of their art assets while maintaining ownership and control.”
Source: Vanguard
