NIRSAL Microfinance Bank (NMFB) has resolved that the business plans for the \u20a650 billion Targeted Credit Facility as a stimulus package to support households and MSMEs is no longer mandatory.<\/p>\n
Before arriving at this decision, the bank had received 80,000 applications but ran into social media storm when it was discovered that it was charging between \u20a65,000 and \u20a610,000 from applicants to access the bank\u2019s business plan.<\/p>\n
Giving the interest shown for the intervention, the disbursement of the \u20a650 billion fund will commence next week.<\/p>\n
Addressing journalists on the development in Abuja on Tuesday, Managing Director\/Chief Executive Officer of NIRSAL Micro Finance Bank Abubakar Abdullahi Kure explained why the bank changed its mind on the charges.<\/p>\n
According to him, \u201cin order to stem further controversy, the management of NMFB has resolved that the business plan is no longer a mandatory requirement and the third party provision of a business plan is no longer compulsory.\u201d<\/p>\n
He explained that \u201ca business plan is supposed to be substantial, but because of the circumstances, we have developed other templates. Essentially, we will be using your bank statement to project your cash flow back and cash flow upfront.\u201d<\/p>\n
He lamented that \u201cthe major challenges we are having is people are submitting bank statements that are not current.\u201d<\/p>\n
With the new development, Kure said \u201cthose who have a business plan might have their application proceeded faster. We don\u2019t want to make it mandatory because of the challenges associated with it but a serious person will know that if you are taking up to \u20a625 million, then you need a business plan.\u201d<\/p>\n
\u201cA business plan tells you about your business profitability, sustainability and so these are the essential things we look at.<\/p>\n
Kure cautioned applicants that the money they will be getting \u201cis a loan. It\u2019s not a grant and anyone who thinks it is a grant should stay away.\u201d<\/p>\n
According to Kure, \u201cthose that can afford the business plan can go ahead but for those who can work outside of the business plan, it\u2019s not a problem.\u201d<\/p>\n
Kure also stated that 40,000 of the applicants that had so far applied for the facility were households.<\/p>\n
The objective of the \u20a650 billion facility he said is \u201cto allow firms stay in business and ensure people stay employed and mitigate harm on the economy.\u201d<\/p>\n
Speaking on the controversial business plan, Abubakar Abdullahi Kure said \u201cthe issue of business plan was a requirement for MSMEs applications as stipulated by CBN guideline.\u201d<\/p>\n
\u201cAt the start of the process, business plans which NIRSAL received from loan applicants were highly substandard and to ensure high standard and efficient processing, an optional, automated business plan was provided by a service provider at a highly discounted fee.<\/p>\n","protected":false},"excerpt":{"rendered":"
NIRSAL Microfinance Bank (NMFB) has resolved that the business plans for the \u20a650 billion Targeted Credit Facility as a stimulus package to support households and MSMEs is no longer mandatory. Before arriving at this decision, the bank had received 80,000 applications but ran into social media storm when it was discovered that it was charging […]<\/p>\n","protected":false},"author":62,"featured_media":17914,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[24,1438,1437],"tags":[835,228],"class_list":["post-23910","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-coronavirus-in-nigeria","category-files","tag-minister-of-finance","tag-oil-production"],"yoast_head":"\n