CBN Warns Against Borrowing From Loan Sharks

The Central Bank of Nigeria (CBN) has stated that individuals in need of funds can access loans from banks, warning against borrowing from loan sharks.
CBN Governor, Godwin Emefiele, who disclosed this at the first of Monetary Policy Committee (MPC) meeting of 2022, expressed his displeasure in the way loan sharks handle customers who default.
He said for any entrepreneur to access a loan for business, “you don’t need to know anybody. Just go into the portal, fill the form, send your data. If your data is correct, you would be able to access loans”.
Emefiele cautioned that, “if you go to a loan shark to borrow, you would pay two or three times the amount in 90 days. When you refuse to pay, they would seize your property just to collect N200,000.00.”
He, therefore, advised the public to avoid such informal lending and opt for formal lending from regulated institutions.
The apex bank boss also noted that regulating such Shylock creditors has always been a challenge since they are mostly in the rural areas and are unregistered, adding that “CBN is not a law enforcement agency like the police”.