Credit Facilities: NIRSAL MFB clears air on Misconceptions
(Business Africa Digest)-
NIRSAL Microfinance Bank{NMFB)has for the umpteenth time said that the Central Bank of a Nigeria (CBN) intervention facilities administered by NMFB were not grants, contrary to some assertions.
In a statement made available to Business Africa Digest in Abuja, the bank said
the development is sequel
to recent speculations among beneficiaries, to the effect that credit facilities administered were misconstrued as grants.
“The bank has consistently maintained direct communication with beneficiaries, refuting claims of intermediaries/agents representing the bank”.
The bank further said 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.
While acknowledging the recent challenges in loan recovery, the bank said it has launched a proactive Recovery Campaign via its social media platforms.
“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 urges beneficiaries to identify and report individuals who purportedly acted as “agents” of the bank to the appropriate authorities. Additionally, the public is encouraged to utilize our whistleblower portal at whistleblower@nmfb.com.ng to report similar cases.
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. This 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.
