•Indicates massive default by borrowers
•May rely on GSI to recover loans
By Emma Ujah , Abuja Bureau Chief
NIRSAL Microfinance Bank, has explained that the Central Bank of Nigeria (CBN)’s intervention facilities that it helped to facilitate were loans, and not grants, stressing that it must be repaid.
Halimatu Omar, Head of Corporate Communications, NIRSAL Microfinance Bank made the clarification, yesterday, in a statement issued from Abuja.
According to her: “ The loans provided at various intervals were strictly intearvention loans tailored for daiverse 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.”
She acknowledged recent challenges in loan recovery and said that the bank has launched a proactive Recovery Campaign via its social media platforms.
According to the image.maker, despite the one-year extension of the moratorium, many beneficiaries have still defaulted on payment schedules.
She said, “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.
She warned that the bank might rely on the Global Standing Instruction (GSI) to recover the loans.
Her words, “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 CBN. 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.”
The post CBN’s intervention facilities not grants — NIRSAL MFB appeared first on Vanguard News.
Last modified: January 5, 2024
