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In the latest news update, beneficiaries of the CBN TCF (Central Bank of Nigeria Targeted Credit Facility) loan express their distress regarding the sudden commencement of loan recoveries by the Central Bank.
The CBN initiated this program back in 2020, aiming to help lessen the economic blow of the COVID-19 pandemic on Nigerians.
Background of the TCF Loan
In March 2020, the CBN introduced the TCF loan – a 50 billion NGN initiative designed to provide financial support to households and Micro, Small, and Medium-sized Enterprises (MSMEs), the sections of the society that were significantly affected by the COVID-19 outbreak.
This loan was intended to cushion the harsh economic realities during the pandemic.
The loans, managed and disbursed through the NIRSAL Microfinance Bank (NMFB), were given at a 5% interest rate, with a grace period lasting until February 28, 2021.
Post the grace period, the interest was set to increase to 9% from March 1, 2021.
Beneficiaries Raise Concerns
Recent developments have seen a surge in concerns from the beneficiaries of this scheme. Several of them have expressed their dissatisfaction with the sudden attempts by the CBN to recover the loans. The main issues highlighted are:
1. Unexpected Loan Recovery
One of the beneficiaries, Fatimah Alli, voiced her concerns about the sudden demand to repay her 500,000 NGN loan. According to her, when she obtained the loan, there was assurance from the bank that repayment was not required.
However, she was surprised when the entire amount in her bank account was recently deducted by the CBN as part of their loan recovery strategy.
2. Discrepancies in Loan Amounts
Another beneficiary, Abbas Sule, mentioned an irregularity regarding the loan amount.
He mentioned that, despite receiving only 450,000 NGN – after a 50,000 NGN commission was deducted by the bank officer who facilitated the loan through the NMFB, he is now being asked to repay the full 500,000 NGN, an action he deems unfair.
The Official Statement from NMFB
The NMFB has been vocal about their stance on the ongoing repayments.
They stated that a total of 503 billion NGN loans had been disbursed to over 881,081 individuals and business operators to help mitigate the effects of the pandemic.
The bank emphasized that these loans were not grants and urged beneficiaries to initiate the repayment process.
The NMFB informed the beneficiaries to visit the nearest NIRSAL branch to obtain a detailed loan repayment schedule, urging them to ensure that their loan accounts are adequately funded to facilitate the repayment.
As the CBN sets in motion the recovery of the COVID-19 intervention loans, the beneficiaries find themselves navigating a wave of financial uncertainty.
The recovery process has undoubtedly raised several concerns, and it seems imperative for both parties to come to a consensus that is fair and just for all involved.
For more updates on the CBN TCF Loan developments, stay tuned. We aim to bring you timely and accurate news to keep you informed