NIRSAL Microfinance Bank Clarifies COVID 19 Loan, Deductions From Beneficiaries
By Sunday Etuka
NIRSAL Microfinance Bank has clarified the repayment process for COVID 19 Targeted Credit Facility, saying the facility was not designed as a grant and deductions from accounts are done within the regulatory framework.
In a statement on Friday by its Head, Corporate Communications, Halimatu Omar, the bank said it noted recent media reports and public comments concerning deductions from accounts linked to beneficiaries of the facility as well as concerns regarding loan balances, repayment records and access to customer support.
The bank said it considers it important to provide clarification on issues raised and reassure customers and members of the public of its commitment to transparency, accountability and responsible banking practices.
It reiterated that COVID 19 Targeted Credit Facility was introduced by the Central Bank of Nigeria as an intervention loan to support households and businesses affected by economic impact of COVID 19 pandemic. The facility was not designed as a grant. All beneficiaries were required to accept electronic offer letters before disbursement outlining applicable terms and conditions including repayment obligations and recovery mechanism in event of default.
Regarding the recovery process, the Bank operates within an applicable regulatory framework including the Global Standing Instruction mechanism approved by the Central Bank of Nigeria. GSI framework enables financial institutions to recover outstanding loan obligations from eligible accounts linked to borrower Bank Verification Number subject to applicable guidelines.
The bank acknowledged concerns expressed by some beneficiaries regarding timing and amounts of deductions, outstanding balances and access to repayment information.
It said it takes concerns seriously and recognises the importance of ensuring every customer has access to accurate information about their loan accounts.
It emphasised that recoveries are intended to settle outstanding contractual obligations. Where any beneficiary has concerns about deductions made, discrepancies in repayment records or status of outstanding balance, such cases should be brought to Bank attention for individual account reconciliation and appropriate resolution.
NIRSAL Microfinance Bank is committed to ensuring legitimate customer complaints are investigated and any discrepancies established through the reconciliation process receive necessary attention.
The bank also recognised the importance of accessible and responsive customer service. Beneficiaries who require clarification on their loan status, repayment history or outstanding obligations are encouraged to engage the Bank through its officially designated customer service channels for assistance.
Furthermore, the Bank cautioned beneficiaries against relying on unofficial intermediaries or individuals claiming to represent NMFB in relation to COVID 19 intervention facility. Customers are encouraged to seek information and clarification directly from the Bank through its authorised communication channels.
“NIRSAL Microfinance Bank remains committed to its mandate of promoting financial inclusion, supporting micro, small and medium sized enterprises and strengthening access to finance for Nigerians.
“The bank will continue to engage stakeholders and address customer concerns in a transparent, professional and responsible manner.
“The bank remains committed to protecting the integrity of the intervention programme while ensuring customers receive necessary guidance and support in resolving their concerns,” the statement concluded.
