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Osun Government Set To Disburse Soft Loans Worth N615m To Small Businesses

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Osun Government Set To Disburse Soft Loans Worth N615m To Small Businesses

The General Manager of Osun Micro-credit Agency, Dayo Babaranti; has said the Osun State Government is set to begin the disbursement of over N615 million to micro and small businesses in the state.

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Babaranti said this in Osogbo and added that so far; the state had given out N4.8 billion to about 28,000 residents as soft loans to support their businesses. Also, he made it known that over 70 percent repayment by beneficiaries has been recorded.

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According to Babaranti; the N615.150 million received from the Central Bank of Nigeria was a part payment from the N2 billion revolving Micro Small Medium Enterprise Development Fund (MSMEDF) loan. The loan was being given to states by the apex bank.

Babaranti said since 2014, the Federal Government, through the CBN; had been releasing intervention funds (MSMEDF) to support socio-economic activities in states.

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Babaranti also said Osun was rated first among the 36 benefitting states of the CBN’s MSMEDF. This is because of its promptness and diligence in repayment. Also, because it used the funds for the primary purpose it was meant.

On the terms and conditions for accessing the loan; Babaranti said the agency had maintained simple and bearable requirements for the citizens.

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“The scheme had helped to rekindle the hope among citizens who were unable to meet the conditions to obtain loans from commercial banks,” Babaranti added.

According to Babaranti, the lending scheme of the agency is divided into three categories. Hence, this will help accommodate all sectors: Individual Lending; Group Lending; and SME Lending.

“The maximum amount that individual lenders can benefit from this agency is N500,000. However, this money must be paid back within one year,” Babaranti said.

For more about soft loans from the government, visit www.smefinance.org

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