COVID19 Intervention Loans: Why Some Applicants Haven’t Received Theirs

The TCF (Targeted Credit Facility) has now recorded over 80,000 loan applicants.

However, there have been complaints by applicants of a delay in receiving loans.

The Managing Director of NIRSAL Microfinance Bank Plc, Abubakar Kure gave reasons for this, stating 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.”

A key solution to this challenge is if the banks can enlighten their customers about other plausible channels of payment like mobile applications and the USSD. Read more here.

Read also: How To Access CBN’s N50billion COVID19 Intervention Loan

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