Beneficiaries of the N149.21 billion from the Central Bank of Nigeria (CBN) Targeted Credit Facility (TCF) paid between five to nine per cent interest rates, the apex bank has disclosed.
The funds, which is for the first phase of the N150 billion TCF were disbursed through the NIRSAL Microfinance Bank after the beneficiaries met set guidelines for the intervention fund.
CBN Governor, Godwin Emefiele, who broke the news at a media interactive programme held in Lagos at the weekend, said the resounding success of the scheme and its positive impact on output growth, has prompted the regulator to double the fund to N300 billion.
The second phase of N150 billion is to kickoff at yet to be announced date with each qualified household expected to access from N1 million to a maximum of N3 million.
Emefiele, who was represented by Deputy Governor, Corporate Services, Edward Lametek, said accommodating more beneficiaries would boost consumer expenditure and stimulate the economy.
He said that in line with the growing need to go digital, the application process is done online and requires limited paperwork from prospective applicants.
Also, the apex bank said loan disbursements were based on the activity, cash flow, and financial capabilities of beneficiaries. The loan facility will run for a maximum of three years and repayment will be made on installment basis.
Part of the conditions precedent to approval and drawdown is that households must agree to allow the NIRSAL Microfinance Bank (NMFB) Credit Unit assess their financial records and estimate the impact of COVID-19 on their income. Applicants must also present evidence of opportunity cost and justify their numbers.
Also, all applicants should possess a valid means of identification such as a national Identity Card, driver’s license, voter’s card or international passport, as well as a valid Bank Verification Number (BVN).
“Given the impact on COVID-19 on key economic variables, the fiscal and monetary authorities took unprecedented measures to prevent any long-term damage to the growth prospects of our economy,” he said.
Emefiele said there is one-year extension of the moratorium on principal repayments for CBN intervention facilities and regulatory forbearance was granted to banks to restructure loans given to sectors that were severely affected by the pandemic.
Also, Micro Small and Medium Enterprises (MSMEs) interested in the scheme, can obtain loans ranging from N3 million to N25 million.
Emefiele disclosed that when the virus broke out in December 2019, many people assumed it would fizzle out within a short time.
 Targeted Credit Facility (TCF) paid between five to nine pe){kind=link}