Business Finance News Updates Policy & Business

CBN removes guarantor rule for Covid-19 loan

The Central Bank of Nigeria (CBN) no longer requires guarantors for households and small businesses looking to get loans to survive Covid-19 economic hardship.

The bank is disbursing loans to this class of persons from a N50 billion COVID-19 Targeted Credit Facility.

Since the announcement of the loan palliative, thousands of applicants met a stonewall with the usual stiff requirements, including getting a guarantor.

The change of heart, according to officials, is to ensure that the loan actually gets to those that need it, but “they must pay back.”

A newspaper quoted an unnamed CBN official who said: β€œThe CBN wants to minimise the stress on applicants but that does not mean that they will not pay back the loan. They will.”

The N50 billion COVID-19 Targeted Credit Facility for households and SMEs to mitigate the harsh economic impact of the corona virus pandemic is being managed by NIRSAL Microfinance Bank (NMFB), a CBN subsidiary company.