Nirsal Micro Finance Bank has launched non-interest banking window for Targeted Credit Facility and the Agric Small Medium Enterprise Scheme (AGSMEIS).
With the latest announcement, NMFB joins the list of four other banks in Nigeria that offers non-interest banking products, Jaiz bank is the first financial institution in Nigeria to start the Islamic principle of banking.
Below are five things to know about the new development:
1) The NMFB Non-Interest Banking window is a non-interest facility targeted at small businesses for the financing of key assets for their businesses.
Generally, the bank is aligning with Islamic financing that frowns at interest on credit facility to individuals and businesses.
2) The product is available to all Nigerians (who are 18 years and above, have Bank verification numbers (BVN) and have evidence of business establishment and registration, and whose business was adversely affected by the Covid-19 Pandemic) irrespective of religious bias. It isn’t exclusively designed for Muslims.
3) The credit facility for businesses will be based on the Principle of non-interest, risk-sharing, and rewards.
Difference between Non-Interest Window for TCF & AGSMEIS, and the COVID-19 Targeted Credit Facility?
Despite the fact that NMFB will be in charge of loan disbursement, the two products are completely not the same.
4) While the AGSMEIS and the Covid-19 Targeted Credit Facility are loans that are repayable, the Non- Interest Banking window for TCF & AGSMEIS are not, but the applicant must be ready to sharing of profit from the investment with the lender.
Apart from that, it also focuses on asset financing.
5) An applicant can not access the two credit products. If you’ve already taken TCF, you can apply for NMFB non-Interest Banking Window for TCF & AGSMEIS
The only similarity between the two products is writing and submission of a business plan, you can check our guide on how you can come up with a plan for your business idea at: https://infomediang.com/agsmeis-loan-business-plan
We commend the financial support of the Godwin Emefiele-led CBN in supporting SMEs, ordinarily, it should be a role that should be played by the Ministry of Agriculture and Rural Development.
While it is heartwarming to see the CBN through NMFB supporting micro-businesses and entrepreneurs, hundreds of complaints of applicants of the existing products remain unattended to.
We hope that the bank takes complaints of helpless applicants seriously to enable them use the fund for the purpose it is meant.