Friday, May 14, 2021

BOI rolls out repayment scratch-cards for TraderMoni and MarketMoni Loans

Must read

Naija247news, Nigeria
Naija247news is an investigative news platform that tracks news on Nigerian Economy, Business, Politics, Financial and Africa and Global Economy.

The Bank of Industry has begun the roll-out of its voucher-based loan repayment recharge cards for the GEEP TraderMoni, MarketMoni, and FarmerMoni loans.

Through a flexible weekly loan repayment plan of N430 per week paid over six months or N860 per week paid over three months, TraderMoni beneficiaries can use the cards to pay back their loans and qualify for the next loan of N15,000. When they pay that back, they graduate to the N20,000 stage, and then they ultimately graduate into the MarketMoni program where they can get up to N100,000.

The Government Empowerment & Enterprise Program (GEEP) of the Federal government has enabled easy access to finance and working capital for as many as 1.7million traders across the country since it started in 2016. These loans are part of the Federal government’s plan to broaden financial inclusion at the base of the pyramid, and spur economic growth at the grass-roots.

However, the challenge with last-mile credit delivery is the fact that it is last-mile. In a speech by the Executive Director, Micro Enterprises Division at the Bank of Industry, Mrs. Toyin Adeniji noted that most of the beneficiaries stay kilometers away from the nearest banks, so whilst the ability to pay back the loans at any commercial bank in the country via pay-direct works well for traders in the urban centers, their counterparts in Nigeria’s remote markets have often had to walk long distances to pay back theirs.

This led the Federal Government, through BOI’s Micro-Enterprises Division to develop voucher based repayment scratchcards that can be sold, and loaded the same way regular Telco recharge cards are sold and loaded: a beneficiary buys the TraderMoni loan repayment voucher for the amount they wish to pay back, and loads it on their mobile phone using the USSD shortcode on the card. This automatically credits the beneficiary’s loan account and updates their loan position. They also get an SMS notification that they have repaid their loan to the value of the loaded voucher.

Beneficiaries who complete this process and payback their loans automatically qualify for the next loan level.

The GEEP products are tools for Nigerian traders to build their credit ratings so that, even without collateral, their credit history will make them appealing to traditional lenders. Many traders have recognized this opportunity and have begun graduating up the GEEP loan levels. We spoke to a few of them:

Mohammed Alhaji Mohammed, Chicken Seller

My name is Mohammed Alhaji Mohammed, here in Tarauni Market, Kano market. I sell Chicken. I am so happy about this money I have received; I am so grateful. The government should continue with this good thing they are doing. I have paid back the N10,000 loan and I have gotten the N15,000. I am a trader who buys and sell; and with the profit I make, I pay back the loan so that I can stand the chance of getting the next loan. My advice for other beneficiaries is that they should utilize the loans for the purpose so it can easily be paid back and one can stand the chance of benefiting from the next phase. Thank you federal government! Thank you TraderMoni.

Aishetu Adamu, Medicine Seller

My name is Aishetu Adamu; earlier I was given a loan of 10,000 Naira. I am a businesswoman; I sell drugs and food condiments. I did business with the loan and I paid back and now I have received the 15,000 Naira loan. Honestly, I am very happy. Thank you Federal Government; may God bless us.

Lucky Solomon, Provision Seller

My name is Lucky Solomon; I am very grateful. I was first given the 10,000 Naira TraderMoni loan. It was very useful to my business; I used it, made a profit and paid back and now they have given me the 15,000 Naira loan. I am very excited about this and I thank the Federal Government for this initiative. I pray it increases.

- Advertisement -spot_img

More articles


- Advertisement -spot_img

Latest article

WP to LinkedIn Auto Publish Powered By :
%d bloggers like this: