Latest news on NMFB – CBN Intervention Loans.
Learn about the actions NMFB is taking to ensure loan repayment and maintain a healthy credit environment in Nigeria.
An Urgent Call to Action: COVID-19 Loan Defaulters Face Potential Blacklisting on Credit Bureau Platform by NMFB
In a recent development in the finance sector, the Nirsal Microfinance Bank (NMFB) has warned beneficiaries of the Central Bank of Nigeria (CBN) Intervention Loans about the dire consequences of failing to repay their loans.
The bank has raised the alarm that it will upload the Bank Verification Numbers (BVNs) of defaulters to the Credit Bureau Platform, which will effectively prohibit these individuals from accessing additional loans in Nigeria.
“Being creditworthy provides financial flexibility, enabling you to qualify for larger credit limits and acting as a safety net during emergencies or investment opportunities. Failure to repay the CBN Intervention Loan will result in your information being uploaded to the Credit Bureau Platform, rendering you ineligible for future credit,” NMFB stated.
A Breakdown of the CBN Intervention Loans
The CBN Intervention Loans span across a multitude of programs such as the COVID-19 Targeted Credit Facility Loan, AGSMEIS Loan, Anchor Borrowers’ Program (ABP Loan), and the Nigerian Youth Investment Fund (NYIF Loan).
COVID-19 Targeted Credit Facility Loan
The COVID-19 Targeted Credit Facility Loan was introduced by the Federal Government in April 2020 as a palliative measure to provide financial support for Small and Medium Enterprises (SMEs) that were negatively affected by the global pandemic.
This initiative was majorly facilitated by the NIRSAL Microfinance Bank, a CBN-licensed institution responsible for distributing and recovering the CBN Intervention Loan.
This loan package, which offered an interest rate of 5% for the first year and 9% for the following years, was designed with a maximum duration of three years.
A Closer Look at the CBN Intervention Loan Distribution
A wealth of statistical data provided by Nirsal Microfinance Bank provides a clearer picture of the scope of the CBN Intervention Loan Schemes. Over 881,000 Nigerians and businesses have benefited from loans totaling more than N503 billion.
- COVID-19 Targeted Credit Facility: 612,321 households received loans ranging from N250,000 to N1 million, amounting to N240.083 billion, and 103,185 SMEs benefited from loans worth N104.023 billion.
- Non-Interest Beneficiaries (NIB): 21,027 households secured facilities worth N9.091 billion, while 2,710 Non-Interest scheme (NIB SME) SMEs received N1.057 billion.
- Agric Small Medium Enterprises Scheme (AGSMEIS): 31,067 beneficiaries accessed loans amounting to N116.001 billion.
- Anchor Borrowers’ Programme (ABP): Loans worth N31.001 billion were disbursed to 105,244 applicants.
- Nigeria Youth Investment Fund (NYIF): Loans totaling N1.009 billion were granted to 5,527 beneficiaries.
A Reminder of the Importance of Repayment Obligations
Given the substantial amount of money disbursed to various recipients under the CBN Intervention Loan Schemes, NMFB is determined to ensure that beneficiaries understand their responsibilities.
The bank’s ultimatum to defaulters was explicit and timely, as they urged those defaulting on their repayment obligations to act swiftly.
The bank highlighted the importance of a positive credit history, as it is a critical determining factor when applying for higher loan amounts or participating in future intervention programs.
NMFB has made it abundantly clear that maintaining creditworthiness is not just about qualifying for future loans but also about fostering financial flexibility, which can serve as a safety net in times of emergencies or for seizing investment opportunities.
To the beneficiaries of the CBN Intervention Loans who are currently defaulting, NMFB’s message is clear: Honor your loan repayment obligations, or face the consequences.
Failure to do so may result in being blacklisted on the Credit Bureau Platform, thus rendering these individuals ineligible for future credit.
By doing so, the NMFB aims to encourage a culture of financial responsibility and adherence to contractual agreements, essential for the sustainable growth of any economy.
As we navigate these uncertain times, initiatives such as the CBN Intervention Loans are vital for the survival of SMEs and the overall economic stability of Nigeria.
The emphasis, however, is on recipients to reciprocate this gesture by honoring their commitments and maintaining a clean credit history, which is essential for the nation’s financial ecosystem’s ongoing functionality and sustainability.