COVID-19 Loan Repayment: NMFB threatens to upload Loan Defaulters BVN on Credit Bureau Platform

The Nirsal Microfinance Bank (NMFB) has threatened to upload the Bank Verification Numbers (BVN) of CBN Intervention Loan beneficiaries, who had failed to repay their Loan, on the Credit Bureau Platform which would prevent them from taking Loans in the country.

NMFB made this known in a Statement on Thursday while encouraging the defaulting beneficiaries to pay back their Loan which has been long overdue.

The NMFB emphasised the need of being credit worthy, stating that it a way of assuring that one qualifies for a higher loan at any moment the need arises or in times of such intervention Programmes.

"Being creditworthy provides flexibility in managing your finances. It allows you to qualify for higher credit limits, providing a safety net during emergencies or enabling you to seize investment opportunities.

"Refusing to payback the CBN Intervention Loan you recieved will cause the upload of your on Credit Bureau Platform, which means you will no longer be credit worthy", the NMFB stated.

The CBN Intervention Loans includes the COVID-19 Targeted Credit Facility Loan, AGSMEIS Loan, Anchor Borowers Borrowers Programme (ABP Loan), and the Nigerian Youth Intervention Fund (NYIF Loan).

The COVID-19 Targetted Credit Facility Loan is a palliative Loan introduced by the Federal Government in April, 2020 to cushion the effect of the COVID-19 pandemic on Small and Medium Enterprises (SMEs) which featured the SME and Household Loans.

The COVID-19 TCF was disbursed mainly by the NIRSAL Microfinance Bank, a CBN licensed bank charged with the responsibility of disbursing and recovering the CBN Intervention Loan, at 5% interest rate for the 1st year and 9% interest rate for subsequent years for 3years maximum duration.

Statistics data from the Nirsal Microfinance Bank indicated that it has disbursed loans worth over N503 billion to over 881 thousand Nigerians and businesses under the CBN Intervention Loan Schemes.

A break down of the beneficiaries showed that 612,321 households received N240. 083 billion in loans ranging from N250,000 to N1 million.

Similarly, between 2020 and December 2021, 103,185 Small and Medium Enterprises (SMEs) received loans valued at N104. 023 billion also under the COVID19 TCF.

Also, 21,027 Households that are Non-Interest Beneficiaries (NIB) of the NIRSAL MFB loans have so far secured facilities amounting to N9.091 billion.

Small and Medium Enterprises (SMEs) under the Non-Interest scheme (NIB SME) numbering 2,710 have accessed N1.057 billion loan while 31,067 Agric Small Medium Enterprises Scheme (AGSMEIS) beneficiaries have accessed N116. 001 billion loan from NIRSAL MFB in one year.

Also, 105,244 Anchor Borrowers’ Programme (ABP) successful applicants have equally received loans amounting to N31.001 Billion while 5,527 Nigeria Youth Investment Fund (NYIF) have also drawn down N1.009 billion loans.