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NIRSAL MFBs Warns Entrepreneurial Institutions Against Charging Extra Cost For Loan Application

Oluwasina Phillip

NIRSAL Microfinance Bank Plc on Sunday said it has disbursed the sum of N101bn to 26,274 Farmers to under the Agribusiness/Small and Medium Enterprise Investment Scheme (AGSMEIS) of the Central Bank of Nigeria that the Bank.

It said this while responding to claims by certain individuals on social media that applied for loans, under the Agribusiness/Small and Medium Enterprise Investment Scheme (AGSMEIS) of the Central Bank of Nigeria that the Bank conspired with some EDIs to extort money from applicants with the promise to grant them approvals for their loan requests.

The bank described the accusation as not only spurious, but unfounded as it frowns at any form of unethical practice or unprofessional conduct which contravenes its policy and core values.

The statement reads in part, “The attention of the Management of NIRSAL Microfinance Bank has been drawn to some claims by certain individuals on social media that applied for loans, under the Agribusiness/Small and Medium Enterprise Investment Scheme (AGSMEIS) of the Central Bank of Nigeria that the Bank conspired with some EDIs to extort money from applicants with the promise to grant them approvals for their loan requests.

“This accusation is not only spurious but unfounded as NMFB frowns at any form of unethical practice or unprofessional conduct which contravenes our policy and core values.

“Till date, NIRSAL Microfinance Bank has disbursed the sum of N101billion to 26,274 AGSMEIS applicants across the six geo-political zones in the country with emphasis on even spread.

“We are therefore surprised with the narrative that applicants from the South East are marginalized under this scheme. This statement is malicious.”

The bank said in the statement that it’s process is not only transparent but also ensures that successful applicants are Nigerians who are well experienced in their line of business and have met with the criteria set out for lending.

“NIRSAL Microfinance Bank has repeatedly warned applicants, through various social media platforms, that the AGSMEIS loan application process is individual-based, after the completion of a N10,000-cost training exercise by NMFB-accredited Entrepreneurial Development Institutions, (EDIs).

“The business plan, which is also automatically generated on the portal, has two options – a free application and another that cost N5,000. Applicants have the liberty to use any of the two business plan options. No EDI has the right to charge extra cost. “

The bank also urged applicants who were recently sent a decline application message due to their inability to meet set current risk assessment criteria that they can re-apply with a business plan tailored to the new maximum of N3m threshold at no cost to them.

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