As part of the stimulus package announced by the Central Bank of Nigeria (CBN) to help mitigate the impact of the coronavirus pandemic on the economy and businesses, the apex bank introduced an N50 billion Targeted Credit Facility (TCF) in March 2020, to support households and micro, small and medium enterprises (MSMEs) that have been affected by the pandemic.
The facility from CBN, which is to be disbursed through the NIRSAL Microfinance Bank Ltd (NMBL), had recorded about 80,000 applications as at April.
However, this program has not been without some hiccups with many applicants complaining about difficulties in assessing the facility.
During an interview with ChannelsTV, the Managing Director of NIRSAL Microfinance Bank Plc, Abubakar Kure, explained why there were difficulties in disbursing the facility to the applicants.
(READ MORE: Covid-19: CBN wants to fund research for Nigerian Made vaccines)
He disclosed that the nationwide lockdown and restrictions had been a major challenge to the smooth processing of the facility. This was also compounded by the inability of some of the applicants to secure guarantors.
According to Kure, “You are all aware of the lockdown across the country and major cities. We have lockdown around Kano, Lagos, Port Harcourt, and incidentally Kaduna. So all these major cities constitute a significant part of the applicants who applied for COVID [loans]. We are actually thinking outside the box to see how we can reach them so that they can come and have the loans.
“Currently what we do is that we are using digitalization in the form of emails. We send emails to those who have email accounts, we print their offer letters, send back to them, do the documentations and they are able to drawdown.
‘’The most important thing is about the lockdown and that’s why the credit facility was created. It also constitutes a challenge.”
Going further he said, ‘’We are improving our processes, systems, people to be able to meet up with the expectations. You are fully aware that this loan is for a short term. It’s a short term seamless package by Central Bank intended to cushion the effect on businesses and people. However, because of the lockdown and the restriction of people, there have been delays. We have also noticed the issue around guarantors.”
(READ MORE: CBN pumps funds into FOREX market through Wholesale SMIS)
The NMFB boss, while explaining, also encouraged qualified individuals to come forward and guarantee the approved applicants because they had viable businesses. He said that the ones that had been evaluated were very successful SMEs with the capacity to pay back.
On why the difficulty in disbursing the credit facility considering that it was supposed to be a short term facility to cater for businesses and households during the period of pandemic and lockdown, Mr Kure said, “This is a loan and not a grant, you are required to sign offer letters in terms of documentation that need to be signed so that it requires physical interaction between the bank i.e. NIRSAL Microfinance bank as well as the customers. So customers are unable to even come to sign the documentations and customers are even unable to get guarantors.”
However, as part of the solution to this challenge, Kure said the bank was trying to enlighten the customers about other channels of payment like mobile applications and the USSD. He said that those that we’re able to finish their documentation and sign offer letters, a fundamental aspect of the loan, could drawdown.
On the number of applicants that had benefitted so far from the facility, the NMFB MD said, “If you go to our website, we have over 1000 applicants that are enjoying the facilities. The buildup is expected in a few days to come.”
(READ MORE: IMF approves $1 billion for Ghana to fight COVID-19)
He also disclosed that NIRSAL Microfinance bank had received N5 billion from CBN for about 5,000 applicants and they hoped to disburse about 90% of that in a few weeks to come.
This disbursement from the apex bank was collaborated by CBN’s Director for Development Finance, Yusuf Yila, who said that they had disbursed N5 billion for 5,000 applicants through the NMFB.
On the kind of collateral needed for small businesses, Kure said they were usually soft collaterals that ranged from guarantors to movable assets like cars, equipment, and so on, unlike large volume ticket collaterals for big businesses. He said the most important thing to consider in the approval was the cash flow and the ability to pay back the facility.
He also disclosed that the households constituted about 65% of the applications that were received.
Good morning sir
I was called to come and sign the offer letter since Monday 11/05/2020 at their Abeokuta office and also account opening documents and as of today 20/05 /2020 no funds, no updates and no account number
Best regards
I want to register the site is not going Sir please can you help me to continue my business thanks.
How can I submit my application letter
Please what is the website please
NISRAL are not sincere in their dealings,reason why this country refuse to move forward.
Imagine a country of over 200million people, only 1000 people benefited so far meaning all they care about is their own immediate family because if at the end of the day people failed to meet up their stringent policy to receive the loan,they will divert it to their family since they know what they want before loan can be granted to Nigerian.. It is well
Nirsal microfinance are guilty of fake news. Nigerians need genuine helper during this Covid 19, not a misleading one.
Please sir, I made a mistake and inpute my name where I was supposed to input my bank name, please sir, is there anything I can do to correct that?. Will be waiting for your reply sir. Thank you
Hi bro i hv thesame misktake too hv u Find a solution to your broblem
Taraba state applicants are yet to receive invitation for interview. What’s going on?
The custodians/ managers of the loan are not sincere about the process. I applied for the same loan but was told that they will get back to me in the next 72hrs yet no response till date after a month plus. The government should investigate those in charge if it’s really meant for Nigerians
We are on the same page… No response from then over a month now.
Is because FG want leave tarabans with their crises TIV and JUKUMS
The loan is for northerners. Don’t waste your pen and paper.
We are proud of your work sir may God continue help the organization yours umar Mohammed from Maiduguri
I have receive mail for more than 3 times yet to forward my lian
It is well, the whole process is taking too long.Some much delay in sending reply to enable an individual know if he or she qualified.
Sir I apply they are saying maximum number of people have responded to the form
It is well, the whole process is taking too long.Some much delay in sending reply to enable an individual know if he or she qualified.
Am from Port-Hourcourt,since April i applied for this loan,i’ve been told they will call me for interview,till now i have not heard from NIRSAL.If they said 1000 applicate have benefited,who are they,what sate are they from?I’ve been in their office after applying online,when I heard nothing from them,they ask me to go & wait they will call me,till now I’ve not heard from them.
Why make stringent measures. That amounts to denial. Who will agree to guarantee such loans at this time. Is it not supposed to be a soft loan to help boast the economy. Our economy is already bad and you putting strict measures so that nobody will get it and you end up getting it to your people only. What a Nigeria. Who will qualify for it, defeating the very purpose of the loan
Good day sir, i was among ur first applicant, i fill and submitted like everyone and at the end of submission i was debited 5000 naira by wema Bank later i receive a mail to refreshing my list i did finally they sent me a guarantor form i fill and submit and is up to 3 week’s now i have not had or gotten any massage from u people till now, i have even call ur customer care line a lady told me i will hear from u people soon but no response till now, thanks and God bless you sir i wait to hear from u.
Thanks for ur wonderful job, but lam really disappointed in d whole thing l ve received offer since two weeks yet no money, pls do the needful and pls for once let’s act according to expectations, help this country to grow and promote the dreams of everyone living in it,help everyone to grow back their businesses,pls Nirsal do the needful
I applied for the loan, but people around believe that is the usual Nigerian thing, that I was just wasting time.
Up till now, no communication between the microfinance bank and I.
this loan is real but meanly for some group or tribe best known to them.
I need help am serious in need for money
Thanks to NMFB. I received mine yesterday
Congratulations, please how did u do it? I have been on the waiting list not knowing if i missed any stepor not
Please what was the next step after accepting offer online been waiting for the next instructions
This is great. The right step in the right direction.
Please ,help me ,how can i apply for the loan?
@oshiobrigde, please are you saying you have been credited?
How do I apply for this loan
Pls how do I apply for this loan
I have apply and certifed and i have submitted my account.i want to know why UBA Applicants on the loan have not be credited but Access and GTB have been credited .
How will applied for the cbn loans please?
I was asked to visit their web site to fill in for my offer letter, but it keep saying “This BVN details does not exist” , I also did affidavite for my BVN but it keep saying the same thing each time I visit their site. please help, what should I do next?
i have desame problem
My God helping the organization, sir I registered since January but yet now didn’t gate the any respond neither this nor that
I can get this loan of a thing
Good mmorning sir I want apply the CBN loan due to the this pandemic I lost most of my capital and now I am about to go down while I have 3 boys under me
Kaduna state
Nirsal is doing a great job.
But let them speed up there transactions.
I also registered online expecting there call or emails. I’m very much optimistic, I keep my finger cross.
Waiting for nirsal call.
Registered under smse.
Thanks for reaching me.
I really need money but not as huge as what you people are giving for loan
Can I still apply for the loan now.
I was sent an approval message to go online and accept offer of loan which I did and haven’t heard any response it’s two weeks now please the customer care numbers are always busy is there an email or some other way one could get information on next step please
thesame thing applicable to me, I receive approval message which have done since a month ago please i need an assistance
How can one apply and your office address in PORTHARCOURT. Thank you
PLS sir when is the deadline for this loan. I have been trying to apply to no avail
Good morning, please want to know when the next batch can apply for this July because when l wanted to apply l was told that the application is closed for now, that shortly the program will start again thank
I apply late June does it mean I was not among the chosen one, I am an undergraduate who is is trying to create impact in the society but due to covid19 my unisex shoe and bags biz’s fall and right now I need help to continue my biz thanks.
I apply the loan one month ago i no see massege
Sir I have resived my compermation since 9 october 22 october i yate to see my alart sir what is the problem?
Please sir, I made a mistake and inpute my name where I was supposed to input my bank name, please sir, is there anything I can do to correct that?. Will be waiting for your reply sir. Thank you
Hello sir/ma, I got an loan approval few weeks now and am yet to see the alert pls what can I do.
since November 24 update never receive anything sir
Dear Applicant
You are yet to accept your Covid-19 TCF. Please do so before close of business 15/02/21 otherwise the funds will be recalled. Thank you.
I got the above message and don’t know what I am supposed to do.
What about returning nisal long return
Hmmmm am still waiting alart……I needed this money to improve my life