In October 2019 the Managing Director of Nigeria’s Bank of Industry (BoI), stated that hundreds of Nigerians failed to pay back the loan they get from the bank. “Some of them treat the loans given to them like it’s their own share of the share of the national cake.”
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while BOI may be right on the allegation that Nigerians default on loan repayment, it is also imperative to state that most times, the government do not provide enough information and guide on how borrowers can make repayment.
After the disbursement of the TraderMoni in 2016, more than 100 beneficiaries contacted us on how to make repayment. Most of the bank officials who they contacted were unaware of the repayment method.
In this guide, InfomediaNG shares with you how to repay BOI loans as an individual or organisation.
What happens if you failed to repay loan?
If you default on your loan, Deposit Money Banks has the power to debit your bank accounts.
If you are a loan defaulter at Bank A abandon your account to open a new one at Bank B, your Bank Verification Number (BVN) will expose you.
This means that your account at Bank B will be debited in lieu of status at Bank A.
“The approval is a new measure to mitigate the rising spate of Non-Performing Loans,” Mr Ahmed Abdullahi, CBN Director, Banking Supervision, was quoted as saying in October 4, 2019
So how do I repay BOI loan?
The category of loan obtained (agric financing, SME loan) determines the mode of repayment.
For instance, if you applied for Cassava Bread Fund, the commercial banks through which your approved loan was credited shall remit repayment quarterly or annual basis depending on the terms.
SME loan e.g MarketMoni
The Federal Government 2016 though the GEEP rolled out several loans to assist SMEs, some of the funding opportunities include TraderMoni, MarketMoni, FarmerMoni etc.
When it’s time for repayment, the government through the Bank of Industry launched GEEP repayment scratch cards in January 2019.
The loan repayment scratch card was meant to make repayment easy for those who do not have access to banks.
When the borrower loads the card, it automatically credits the beneficiary’s loan account and updates their loan status.
Such loans can also be repaid through a process called the PayDirect platform.
Step 1: Walk into any bank
Step 2: Tell the Teller that you want to pay their BOIGEEP loan.
Step 3: Give the teller your phone number and the repayment amount.
Step 4: Payment is made
That’s how to repay the Bank of Industry loan. When you pay when your loan is due, you automatically have a good credit score.
If you default, it’s a bad credit score for you and you may find it difficult to have access to such funding opportunities from the bank in the nearest future.