- Insists beneficiaries took recoverable loans, not grants
BY COBHAM NSA – Following growing anxiety among beneficiaries of the COVID-19 Targeted Credit Facility (TCF), NIRSAL Microfinance Bank (NMFB) says there is nothing to hide given its commitment to accountability, transparency, and hands-on customer support.
Accordingly, the bank has stepped forward to calm frayed nerves and rebuild public trust as borrowers navigate aftermath of the pandemic-era lifeline with concerns over disputed loan balances, murky repayment records, and frustrating hurdles in reaching the bank’s customer service
In a firm reassurance to anxious borrowers, the bank said no one will be left stranded without clear guidance and swift resolution to their lingering concerns, promising to keep the lines of communication wide open, in addressing every customer complaint with utmost professionalism and transparency that safeguards the credibility of the landmark intervention programme as a top priority.
A statement issued in response to recent media reports and public concerns over deductions from accounts linked to beneficiaries of the intervention programme, outstanding loan balances and repayment records, NMFB explained that the Credit Facility, introduced by the Central Bank of Nigeria (CBN) an intervention lending programme to support households and businesses affected by the economic consequences of the COVID-19 pandemic, was never designed as a grant.
Signed by Head, Corporate Communications, NMFB, Halimatu Lawal Idris-Omar, the statement said all beneficiaries were required to accept electronic offer letters before disbursement, outlining the applicable terms and conditions, including repayment obligations and the recovery mechanism in the event of default.
It said the clarification became necessary amid growing concerns among some beneficiaries over the recovery of outstanding obligations through deductions from their bank accounts, assuring that its recovery operations are conducted within the applicable regulatory framework, including the Global Standing Instruction (GSI) mechanism approved by the CBN.
It said the GSI framework empowers financial institutions to recover outstanding loan obligations from eligible accounts linked to a borrower’s Bank Verification Number (BVN), subject to established regulatory guidelines.
The statement further read in part: “The Bank acknowledges the concerns expressed by some beneficiaries regarding the timing and amounts of deductions, outstanding balances and access to repayment information. We take these concerns seriously and recognise the importance of ensuring that every customer has access to accurate information about their loan accounts.
“It is important to emphasise that recoveries are intended to settle outstanding contractual obligations. Where any beneficiary has concerns about deductions made, discrepancies in repayment records or the status of an outstanding balance, such cases should be brought to the Bank’s attention for individual account reconciliation and appropriate resolution.
“NIRSAL Microfinance Bank is committed to ensuring that legitimate customer complaints are investigated and that any discrepancies established through the reconciliation process receive the necessary attention.
“The Bank also recognises the importance of accessible and responsive customer service. Beneficiaries who require clarification on their loan status, repayment history or outstanding obligations are encouraged to engage the Bank through its officially designated customer service channels for assistance.”
While cautioning beneficiaries against relying on unofficial intermediaries or individuals claiming to represent NMFB in relation to the COVID-19 intervention facility, the statement urged customers to always seek information and clarification directly from the Bank through its authorised communication channels.
It further said NMFB remains committed to its mandate of promoting financial inclusion, supporting micro, small and medium-sized enterprises (MSMEs), and strengthening access to finance for Nigerians, pledging to continue engaging stakeholders and address customer concerns in a transparent, professional and responsible manner.
“NIRSAL Microfinance Bank remains committed to protecting the integrity of the intervention programme while ensuring that customers receive the necessary guidance and support in resolving their concerns”, the statement said.
