CBN waives guarantor requirement for COVID-19 loan

CBN waives guarantor requirement for COVID-19 loan

- CBN has waived guarantor requirement for coronavirus loan

- This was disclosed on the evening of Monday, June 8, by the apex bank through its verified Twitter handle

- According to CBN, the requirement was waived to reduce the stress on applicants trying to access the loan

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The Central Bank of Nigeria (CBN) has waived the requirement for the provision of guarantors by households and SMEs applying for its N50 billion COVID-19 targeted credit facility.

Legit.ng reports that the apex bank made this revelation on its official Twitter account.

The Nation reports that a source at the CBN confirmed that the reason for waiving the guarantor requirement was to reduce the stress on applicants trying to access the loan.

According to the source: “The CBN wants to minimise the stress on applicants but that does not mean that they will not pay back the loan. They will.”

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The CBN initiated the N50 billion COVID-19 targeted credit facility for households and SMEs to mitigate the harsh economic impact of the coronavirus pandemic.

CBN waives guarantor requirement for COVID-19 loan

Central Bank of Nigeria (CBN) headquarters, Abuja. Credit: Twitter/CBN
Source: UGC

Already, thousands of Nigerians have applied for the loan while the implementing agency the NIRSAL Microfinance Bank (NMFB) has been processing the applications for disbursement.

Meanwhile, Legit.ng had previously reported that former vice president Atiku Abubakar described the stoppage of subsidy and price-fixing for petrol as a right move by the All Progressives Congress (APC) administration led by President Muhammadu Buhari.

It was reported that Abubakar is also the leading opposition Peoples Democratic Party (PDP) presidential candidate in the 2019 general elections.

In another report, in a bid to avert the looming economic recession as a result of the coronavirus pandemic, the Central Bank of Nigeria (CBN) has cut its key interest rate to 12.5% from 13.5%.

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The new rate is the lowest in four years, citing CBN's governor Godwin Emefiele as saying that seven of the 10 members of the monetary policy committee voted for the cut.

The cut may have two effects; one, it may further stoke inflation and increase pressure on the naira; two, it could also help boost the economy which is facing pressure from the oil price crash and the coronavirus pandemic.

CBN reduced interest rates on its facilities by participating. The directive was reportedly contained in a circular issued by the apex bank on Wednesday, May 27.

The circular also announced that CBN intervention facilities obtained through participating given a further one-year moratorium on all principal repayments, also effective March 1, 2020.

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Source: Legit Newspaper

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