Bad loans in the micro finance sub-sector is estimated to have reached N80bn, according to the President of the National Association of Microfinance Banks, Valentine Whensu.
To stop the rise in NPLs, the association wants to reduce the likelihood for default by ensuring that borrowers get insurance, and by having its micro finance banks improve on credit reporting, background and credit checks, before issuing loans to borrowers.
According to the president of the association, the insurance sector will help the microfinance banks in the drive to bolster risk management practices.
The association is partnering with NICON Insurance in this regard.
“Let me remind you that this is the reason for the synergy or relationship between NAMB and NICON. One of the things that this relationship between us and NICON is going to give us is that before you collect loan, you must have been insured for the basic things… so that in the event that the unexpected happens to the person who has the loan, we have a place where we can get our money back.”
In the event of default going forward, NICON would pay.
The partnership will help to mitigate bad loans by increasing the banks’ risk management capabilities using insurance.
Federal government is giving out empowerment loan to
full time business men and women with No interest
and percentage in conjunction with Nigeria
entrepreneur forum (NEF) and central bank of Nigeria
( CBN) I urge you to take this chances to B3tter your
lives and help eradicate the problems of
unemployment. Interested person should call Mr Ibrahim on
+2348090563549 stating the amount and reason for
obtaining the loan. Note loans are from the minimum
of #100,000 and maximum of #20,000000 naira (Nigeria
currency) and If you are not a member of the NEF you
are liable of purchasing the form.