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CBN Introduces N50b TCF To Support Households, MSMEs Affected By #COVID-19

by on March 26, 2020
 

As a stimulus package to support households and micro, small and medium enterprises (MSMEs) affected by the COVID-19 pandemic, the Central Bank of Nigeria (CBN) has introduced a N50 billion Targeted Credit Facility (TCF).

This was contained in a circular signed by the CBN Director of Development Finance, Dr. Mudashiru Olaitan, on Monday.

According to the Apex bank, the Interest rate under the intervention shall be 5% p.a. (all inclusive) up to 28th February 2021 and thereafter, the interest on the facility shall revert to 9% p.a. (all inclusive) as from 1st March 2021.

The CBN said Households/MSMEs eligible shall submit applications directly to NIRSAL Microfinance Bank (NMFB), adding that the application must, among others, contain BVN number, business registration (where applicable) and business plan with clear evidence of the opportunity or adverse impact as a result of COVID-19 pandemic.

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“Upon satisfactory appraisal of application, NMFB shall forward the applications to the CBN for final approval. CBN reviews applications and gives final approval for disbursement to NMFB,” the Apex bank said.

For Corporate entity, the CBN said those interested in the loan facility shall submit application to NMFB with clear evidence of the opportunity or adverse impact as a result of COVID-19 pandemic.

The CBN added: “Upon satisfactory appraisal of application, NMFB shall forward the applications to the CBN for final approval. CBN reviews applications and gives final approval for disbursement to NMFB.”

The CBN noted that repayment shall be made on installment basis by the beneficiaries to the NMFB according to the nature of enterprise and the repayment schedule/work plan provided at the application stage.

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“This framework shall be subject to review from time to time as may be deemed necessary by the CBN,” it added.

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