Not Grants, NMFB Warns Against Default and Impostors
The NIRSAL Microfinance Bank (NMFB) has issued a strong warning to beneficiaries of Central Bank of Nigeria (CBN) intervention loans, clarifying that these loans are not grants and defaulters will face consequences. This comes amid widespread rumors suggesting otherwise and lax repayment schedules by some borrowers.
Addressing Misconceptions:
NMFB’s statement on Thursday, January 4, aimed to dispel the misconception that the CBN’s intervention facilities, such as the Targeted Credit Facility (TCF) and the Agricultural, Small, and Medium Enterprise Investment Scheme (AGSMEIS), were handouts.
These loans, carrying moratoriums of 36 months for TCF and 60 months for AGSMEIS, were specifically designed to support businesses during the COVID-19 pandemic and contribute to economic recovery.
Delinquent Borrowers Put on Notice:
Despite the extended grace period, NMFB expressed concern about the high number of borrowers falling behind on their repayments. To address this, the bank has launched a multi-pronged approach:
- Proactive Recovery Campaign: Utilizing social media platforms, NMFB is actively educating beneficiaries about their repayment obligations and the consequences of default.
- Direct Communication: The bank is directly contacting borrowers to clarify any concerns and dispel rumors of intermediaries or agents.
- Whistleblower Portal: To combat potential scams, NMFB encourages beneficiaries to report any individuals claiming to be bank representatives to the authorities through a dedicated whistleblower portal.
Consequences of Default:
NMFB emphasized that non-repayment is not an option. The bank has the legal authority to recover outstanding loans through the Global Standing Instruction (GSI), which allows it to debit accounts in other banks linked to the borrower.
Seeking Support, Not Evasion:
NMFB encourages borrowers facing genuine repayment challenges to approach the bank for assistance. The bank’s website provides resources and information to facilitate smooth loan repayment.
Key Takeaways:
- CBN intervention loans are not grants, but repayable loans with specific terms and conditions.
- Defaulting on these loans will have consequences, including potential account debits through GSI.
- Beneficiaries with concerns should approach NMFB directly for assistance, not rely on rumors or intermediaries.
- Reporting suspected scams and imposters is crucial to protect oneself and others.
By emphasizing repayment responsibility and providing clear communication channels, NMFB aims to encourage responsible borrowing and ensure the success of the CBN’s intervention programs in supporting Nigerian businesses and economic recovery.
Additional Information:
- For more information on CBN intervention loans, visit the NMFB website: https://nmfb.com.ng/
- To report suspected scams or imposters, utilize the NMFB whistleblower portal.
Remember, responsible borrowing and timely repayments are essential for the continued success of these programs and the benefit of all participants.
I hope this news article is helpful and informative. Please let me know if you have any other questions.
