Beneficiaries of the Federal Government’s schemes to mitigate the effects of the COVID-19 pandemic have been reminded of the need to commence repayment of the various loans received by them.
NIRSAL Microfinance Bank (NMFB), in a statement, said beneficiaries should understand that the lifelines were loans and not grants.
Funds for the schemes – Targeted Credit Facility (TCF) and Agricultural, Small, and Medium Enterprise Investment Scheme (AGSMEIS) – were provided in 2020 by the Central Bank of Nigeria (CBN). They were disbursed by NIRSAL Microfinance Bank (NMFB).
It said the reminder became necessary due to rumours circulating among the beneficiaries.
NIRSAL MFB’s statement by Halimatu Lawal Idris Omar, Head, Corporate Communications, explained that the TCF beneficiaries had a 36-month window period to repay while those in the AGSMEIS category were given 60 months.
It warned that defaulters cannot escape as Global Standing Instruction (GSI) had been activated for deductions from their accounts in Nigeria and abroad.
The GSI is “a last resort by a creditor bank to recover past due obligations (principal and accrued interest only, excluding any penal charges) from a defaulting borrower through a direct set-off from deposits/investments held in the borrower’s qualifying bank.”
The statement reads: “Despite offering an additional year, many borrowers have defaulted in their repayment schedules .
“This repayment schedules inclusive of the Moratorium is 36 months for Targeted Credit Facility (TCF) while for the Agricultural, Small, and Medium Enterprise Investment Scheme (AGSMEIS), it is 60months inclusive of moratorium.”
“As a result, NMFB has launched a proactive Recovery Campaign through its social media platforms to remind and educate beneficiaries about the consequences of defaulting on their loans.”
The bank added that it had been communicating directly with beneficiaries to dispel rumours of intermediaries or agents representing the bank.
It said: “It is important for beneficiaries to understand that the Global Standing Instruction (GSI) allows the bank to debit accounts in other banks to settle defaults. This policy, authorised by the CBN, is one of the legal recourses available to the bank for loan recovery.
“NMFB is now encouraging beneficiaries with genuine concerns about repayment to approach the bank for evaluation and further discussion about their loan status.
The bank’s website contains valuable information to facilitate smooth repayment of the loans.
“We urge beneficiaries to report individuals claiming to be agents of the bank to the appropriate authorities. A Whistleblower portal has been set up for this purpose.”
