Traders and salary earners can now apply for loans from Nirsal Microfinance Bank Limited, NIRSAL MFB, following the bank’s introduction of two new products, Salary Advance and SME Loan.
The bank’s management stated that the new products were part of its On-Balance-Sheet Lending portfolio, and that they were designed to provide easy access to credit facilities for Micro, Small, and Medium Enterprises that needed affordable credit facilities to boost their businesses, as well as salary earners to meet immediate/pressing needs.
Previously, NIRSAL MFB’s SME loans were mostly for manufacturers rather than traders.
“The loan sum accessible to this set of customers extends from N50,000 to N250million, subject to an acceptable turnover that supports the expected facility amount,” the management stated in a statement yesterday.
“This product is also available to petty traders in organised markets who already have enterprises and need credit facilities ranging from N50,000 to N300,000 to supplement their working capital.”
“The petty trader does not need to have an account with NMFB or any other bank to use the feature.”
“The Salary Advance is for those in paid work whose salaries have been constant for three months previous to applying to the bank.
The bank stated that employees of corporate firms with salary accounts with NMFB could readily access the salary advance option.
It advertised the interest rates for the products as very competitive, with a shortened documentation process for access to any of the aforementioned bank facilities.
The products, according to NMFB, were distinct from the bank’s administration of government intervention products.
As a result, it stated that applications for loan facilities under the On-Balance-Sheet Lending portfolio will be evaluated in accordance with the bank’s risk acceptance criteria.
It went on to say that a loan product for the agriculture industry, covering farmers and all enterprises throughout the agricultural value chain, would be released this year.
“Successful applicants will also benefit from the Federal Government Agricultural Credit Guarantee Scheme Fund, ACGSF, as well as the interest drawback programme for farmers and enterprises in the agricultural value chain.”