A financial institution, the NIRSAL Microfinance Bank, has said the intervention facilities, given by the Central Bank of Nigeria (CBN) that helped to facilitate growth and bolster the economy were loans, and not grants, stressing that such facilities must be repaid.
The Head, Corporate Communications of the NIRSAL Microfinance Bank, Halimatu Omar, who made the clarification in a statement, noted that the loans were tailored for diverse purposes.
“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”, she noted.
Omar acknowledged recent challenges in loan recovery, saying the bank has launched a proactive recovery campaign via its social media platforms.
According to the image maker, despite the one-year extension of the moratorium, many beneficiaries have still defaulted on payment schedules.
“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”, she said.
Addressing concerns raised in a recent publication, the bank urged beneficiaries to identify and report individuals who purportedly acted as “agents” of the bank to the appropriate authorities.
She warned that the bank might rely on the Global Standing Instruction (GSI) to recover the loans.
”It is imperative for beneficiaries to understand that the Global Standing Instruction (GSI) represents one legal recourse for the bank in loan recovery, as authorised by the CBN. This policy empowers banks to debit accounts in other banks to settle defaults.
“Beneficiaries with genuine concerns about repayment are encouraged to approach the bank for evaluation and further discussion regarding their loan status. 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.