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NIRSAL MFB to begin N50bn facility disbursement to beneficiaries

The NIRSAL Microfinance Bank yesterday said it would commence the disbursement of the N50bn Targeted Credit Facility provided by the Central Bank of Nigeria (CBN) as part of the fundng interventions to mitigate COVID-19 impact on the country to eligible businesses and households as from next week The MFB disclosed that so far it had received over 80,000 applications out of which, 40,000 are applications from vulnerable households.

Updating journlaists in Abuja yesterday on the state of the facility and arrangements being made to ensure its timely disbursement, the bank’s Managing Director, Mr. Abubakar Kure said that despite the lockdown, his staff were working remotely to process the applications so that beneficiaries can begin to receive the loans as from next week. While debunking rumours that the MFB was requesting applicants to pay N10,000 from processing fee, the banker said “The CBN does not charge any application fee on COVID-19 Loan, neither does NIRSAL MFB.

 He explained that “NMFB has resolved that the business plan is no longer a mandatory requirement and the third party provision of a business plan is no longer compulsory.” According to him, those with quality business plan will make the processing of their applications easier and faster because those who don’t have, their cash flow profile will determine their chances of getting the loans as a business must demonstrate the capacity to pay back the loan. Kure stressed: “It’s a loan and not a grant.

Your bank statement can give us an idea of your capacity to borrow and your capacity to pay. However businesses that can develop a business plan will make our job easier so we can efficiently and fastly process those loan requests.” He noted that the challenge with those submitting account statements was that most of the statements are not current due to the lockdown.