COVID-19: What You Need To Do As CBN Waives Requirement To Obtain Loan

The requirement for Households and Small and Medium Scale Enterprises (SMEs) to obtain loans from the Central Bank of Nigeria (CBN) N50 billion COVID-19 Targeted Credit Facility has been waived by the apex bank to enable applicants to easily access the loan they need to withstand the COVID-19 pandemic impact.

There have been problems relating to the loan requirements as many individuals and entrepreneurs couldn't provide guarantors to secure the loan. This is one of the reasons the Managing Director of NIRSAL Microfinance Bank Plc, Abubakar Kure, said prevented the disbursement of loans to applicants.

Kure in an AllNews report disclosed that aside from the restriction on movements affecting the loan process, getting guarantors before the approval of the loan has been difficult for many applicants. He had pleaded for individuals to make themselves available as guarantors for applicants.

Thinking Outside The Box

Two weeks ago, Kure had said that NIRSAL is thinking outside the box to enable households and small business owners obtain their loan, now AllNews can confirm that the thought process has led to the CBN waiving the guarantor requirement. This will make getting the loans easier than initially planned.

In a tweet by the CBN on its Twitter handle, the apex bank said, "CBN waives the requirement for the provision of guarantors by Households and SMEs applying for its N50bn COVID-19 Targeted Credit Facility." This means applicants no longer need anyone to stand in place for them to access the COVID-19 loan.

The waiver comes as the CBN reduced the interest rate on the loan per annum to 5% until 28 February 2021. The interest rate is expected to be reverted to the initial 9% from March 1, 2021.

What You Need To Do

With the new development, all eligible loan seekers can now apply for the loan. According to the CBN, once an application has been approved, "All successful Household and SME applicants who have submitted their account details for the CBN N50bn COVID-19 Targeted Credit Facility should expect their accounts to be credited within 48 hours of such submission"

But for all successful applicants under the CBN COVID-19 Targeted Credit Facility "whose accounts have not been credited should go to nmfb.com.ng and input their account details in any bank of their choice." Meanwhile, successful applicants can also call 09010026900 if their accounts haven't been credited after 48 hours.

CBN Cancels Loan Repayment

AllNews had reported that the CBN suspended repayment of COVID-19 intervention loan for one-year while directing banks and other financial institutions to restructure their loan tenor and terms. The suspension, according to the CBN, was to help households and businesses mitigate the impact of COVID-19 on their finances.

The CBN placed a moratorium on all repayments, stating that the suspension became effective March 1, 2020. This directive implies that banks and other financial institutions will extend the due date for the loan repayments, a circular signed by the Director, Financial Policy and Regulation Department, Kevin Amugo, disclosed.