The COVID-19 loan facility and other Central Bank of Nigeria (CBN) interventions administered by NIRSAL Microfinance Bank are repayable loans, not grants, the bank reiterated on Thursday.
The clarification came on the heels of ongoing loan recovery by NIRSAL microfinance bank, an exercise said to have jolted several beneficiaries.
The recovery is being carried out using Global Standing Instruction (GSI) ( at source deduction) from the beneficiary’s accounts.
A statement issued on Thursday by NIRSAL microfinance bank Head, Corporate Communications Hajiya Halimatu Lawal Idris Omar unequivocally reiterated that COVID-19 loans and other facilities are loans not grants.
The statement stated, ” In response to recent speculations among beneficiaries, NIRSAL Microfinance Bank would like to reiterate that the Central Bank of a Nigeria (CBN) intervention facilities administered by NMFB were not grants, contrary to some assertions.
“The bank has consistently maintained direct communication with beneficiaries, refuting claims of intermediaries/agents representing the bank.
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.
Acknowledging the recent challenges in loan recovery, the bank has launched a proactive Recovery Campaign via its social media platforms.
Despite offering an additional year to the initial one-year moratorium, the bank noted that numerous borrowers 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. report similar cases.
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 the smooth repayment of the loans.
“The most prudent action for beneficiaries is to honour 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”, it said.
