Bank distributes N50b loans over coronavirus next week

Successful applicants of the Central Bank of Nigeria  (CBN) soft loans will, from next week, receive disbursements from the fund’s managers, NIRSAL Microfinance Bank.

Between N3 million for households and N25 million for small and medium enterprises are to be given the beneficiaries, the bank’s Managing Director, Abubakar Abdullahi Kure, told a press conference yesterday in Abuja.

He said the 80,000 applications were been scrutinised.

As part of the direct response to the COVID-19 challenge, the apex bank had made available N50 billion for households and small businesses to douse the pangs of the pandemic.  The credit comes at a five per cent interest rate for this year and nine per cent in the next two years.

The CBN has 17 per cent equity in NIRSAL Microfinance Bank while the Nigerian Incentive-based Risk Sharing System Agricultural Lending  (NIRSAL) and NIPOST hold 15 per cent and 10 par cent shareholding in the financial institution.

Kure reminded the applicants that the loan was not a grant but a revolving facility, which must be repaid in due course to enable others benefit.