Diamond bank partners BoI, promises interest free micro credit loan
Diamond bank has entered into partnership with the Bank of Industry (BOI) on the Government Enterprise and Empowerment Programme (GEEP), to provide micro credit fund to small-scale businesses in a bid to widen the financial inclusion net across Nigeria.
GEEP is an interest free loan targeted at market women, traders, artisans, youths and farmers under the Market Moni social intervention scheme of the federal government.
Uzoma Dozie, CEO, Diamond bank, said during a press briefing that the collaboration with BOI is to provide financial inclusion services to people down the pyramid of the banking radar. According to him, the first 5,000 beneficiaries will be women.
Uzoma said GEEP is driven by a digital infrastructure called Mcash that allows people to pay each other using USSID. He said the idea will allow both customers and merchants transact business easily.
Toyin Adedeji, executive director, Micro Enterprise, BOI, said the fund is easily accessible as long as the beneficiaries belong to a market association. It is a micro credit scheme that gives between N10, 000 to N100, 000 with a 6 month payback tenure spread over 24 months.
According to her, beneficiaries will be requested to present their Bank Verification Number (BVN), and are expected to be involved in a commercial enterprise. The loan will attract a 5 percent administrative charge, while the beneficiaries’ will payback weekly through their bank agents.
GEEP is a government initiative to stimulate economic activities and deepen financial inclusion for the under-banked and unbanked. Over 24,000 Nigerians, including market women and traders, artisans, and youth have benefited from the special intervention programme since its rollout in December 2016.
The collaboration between Diamond bank and BOI’s on GEEP seeks to further expand access to credit for over 1.6 million microenterprises annually, with over 50 per cent targeted at women-owned enterprises.
John Salau