NMFB Loan: Nirsal Microfinance Bank introduces Loan for Traders, Salary Advance

The Nirsal Microfinance Bank has introduction two new loan products which it said would enable Traders and Salary Eaners secure loans without hassles.

The two new loan packages, SME Loann and Salary Advance, the NMFB management said were part of its On-Balance Sheet Lending portfolio for easy access to credit facilities by Micro, Small and Medium Enterprises (SMEs) that required affordable credit facilities to boost their businesses, and salary earners to cater for immediate/pressing needs.

Before now, NIRSAL Microfinance Bank's SME loans were essentially for operators engaged in production, rather than trading.

But through the new products, micro businesses and SMEs engaged in trading activities with daily sales can now access NMFB Loan facilities.

The NMB management noted that the loan sum accessible to this set of customers ranges from N50,000 to N250million, subject to a satisfactory turnover that covers the expected facility amount, adding that a petty trader does not necessarily need to have account history with NMFB or any other bank to access the facility.

According to the management, staff of corporate organizations whose salary accounts were domiciled with NMFB could, easily, access the Salary Advance facility.

“This product is also open to petty traders in organized markets who have existing businesses and require credit facilities ranging from N50,000 to N300,000 to augment their business capital.

The petty trader does not necessarily need to have account history with NMFB or any other bank to access the facility.

“The Salary Advance’ is for individuals in paid employment whose salaries have been consistent for 3 months, prior to making an application to the bank.”

“The Salary Advance’ is for individuals in paid employment whose salaries have been consistent for 3 months, prior to making an application to the bank."

“Successful applicants of this product will, also, enjoy the benefits of the Federal Government Agricultural Credit Guarantee Scheme Fund (ACGSF), as well as the Interest Drawback Programme for farmers and businesses in the agricultural value chain.”

NMFB further explained that the loan products were different from the government intervention products administered by the Bank.

As a result, it said that applications for the loan facilities within the On-Balance Sheet Lending portfolio would be appraised in line with the Risk Acceptance Criteria of the Bank.

Speaking on the interest rate for the new loan products, NMFB stated that the interest rate for the loan products is very competitive with a streamlined documentation process for access to any of the above facilities from the Bank.

It added that a loan product for the agriculture sector, covering farmers and all businesses in the agricultural value chain, would be launched within the end of 2022.