We Gave No Free Money, Repay Your Loans – NIRSAL MfB Tells Beneficiaries
BY EDMOND ODOK – With many beneficiaries of the Central Bank of Nigeria (CBN) intervention funds now crying blue murder over the ongoing loan recovery exercise, NIRSAL Microfinance Bank (NMFB) has again explained that the administered credit facilities were not grants.
According to the NMFB, contrary to misconstrued assertions in some quarters, the facilities were soft loans with specific terms spelt out in the subsisting agreements endorsed by all the beneficiaries.
The Bank said wide-spread speculations do not hold water because there has been consistent direct communication with beneficiaries to refute claims of its intermediaries and agents.
Specifically, NIRSAL said in a statement issued in Abuja on Thursday that; ‘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.”
Furthermore, the statement said; “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, 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.”
However, given concerns raised in a recent news story, the bank urged 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”, the statement, signed by the Bank’s Head of Corporate Communications, Halimatu Lawal Idris Omar, added.
Addressing the need 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”, the NIRSAL statement said; “This policy empowers banks to debit accounts in other banks to settle defaults.”
It further stated thus; “Beneficiaries with genuine concerns about repayment are encouraged to approach the bank for evaluation and further discussion regarding their loan status”, adding; “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.”
Urging all concerned stakeholders to reach out for more information on [NIRSAL Microfinance Bank’s website] (https://www.nmfb.com.ng), the statement stressed that; “NIRSAL Microfinance Bank will continue to stress transparent communication to dispel any misunderstandings surrounding the intervention loans.”