Home Business Intervention Credit Facilities Were not Grants but Loans, NIRSAL Microfinance Bank Clarifies

Intervention Credit Facilities Were not Grants but Loans, NIRSAL Microfinance Bank Clarifies

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NIRSAL Microfinance Bank NMFB has reiterated that the Central Bank of Nigeria (CBN) intervention facilities administered by it, were not grants but loans, contrary to speculations and assertions among beneficiaries.

In a statement by the Head, Corporate Communications, Halimatu Omar, the NMFB said that “the loans provided at various intervals were strictly intervention loans tailored for diverse purposes determined by the CBN, including the Targeted Credit Facility (TCF), popularly known as the Covid-19 loan due to its timing as an initiative aimed at mitigating the pandemic’s impact, sustain businesses, and bolster the economy.

The bank said it has consistently maintained direct communication with beneficiaries, refuting claims of intermediaries and agents representing the bank.

Acknowledging the recent challenges in loan recovery, the bank has launched a proactive Recovery Campaign via its social media platforms.

The bank lamented that “Despite offering an additional year to the initial one-year moratorium, numerous borrowers have unfortunately defaulted on repayment schedules. Hence, heightened efforts are being made to remind them, through text messages, of the repercussions of default.”

Addressing concerns raised in a recent publication, the bank urged beneficiaries to identify and report individuals who purportedly acted as “agents” of the bank to the appropriate authorities.

The bank also encouraged the public to utilize its whistleblower portal at whistleblower@nmfb.com.ng to report similar cases.

According to the microfinance bank, It is imperative for beneficiaries to understand that the Global Standing Instruction (GSI) represents one legal recourse for the bank in loan recovery, as authorized by the Central Bank of Nigeria as the policy empowers banks to debit accounts in other banks to settle defaults.

“Beneficiaries with genuine concerns about repayment are encouraged to approach the bank for evaluation and further discussion regarding their loan status. The bank’s website hosts valuable information to facilitate smooth repayment of the loans.

“The most prudent action for beneficiaries is to honor their repayment commitments, as evasion is not a viable option.

“NIRSAL Microfinance Bank reaffirms its commitment to continue playing a role in the country’s efforts to facilitate economic growth, using SME Loans as a major driver.

“NIRSAL Microfinance Bank will continue to stress transparent communication to dispel any misunderstandings surrounding the intervention loans,” she said.

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