LAGOS – Commercial banks are yet to benefit from the Central Bank of Nigeria’s (CBN) N220 billion Micro, Small and Medium Enterprises Development Fund.
The News Agency of Nigeria (NAN) gathered from reliable sources in Other Financial Institutions Department (OFID) of CBN that the banks’ inability to access the funds was due delays in documentations.
According to the source, only about five banks have so far submitted applications for the loans under the funds.
He said that under the new intervention, the CBN had set aside two per cent of it for the physically challenged people.
The source said that 10 per cent of the fund was meant for capacity building on existing entrepreneurs and start-ups respectively.
The official also said that the 10 per cent earmarked for capacity building was for training and development SMEs while 60 per cent was for women entrepreneurs.
He said that the 50 per cent earmarked for the commercial banks and Micro Financial Institutions respectively excluded the other percentages for capacity building, physically challenged and women entrepreneurs.
The source added that the banks were expected to give out the loans at nine per cent interest rate compared with the three per cent offered by the CBN.
He said that the loan which had single obligor limit of N50 billion could not exceed five year tenure without refinancing. (NAN)
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