Avoid Loan Sharks, Leverage On Microfinance Banks, Emefiele Tells Nigerians

CBN Governor
CBN Governor – Godwin Emefiele

Nigerians should be wary of illicit money lenders, sometimes known as loan sharks, according to Godwin Emefiele, governor of the Central Bank of Nigeria (CBN).

This was said by Emefiele at the end of the monetary policy committee meeting in Abuja on Tuesday.

Loan sharks offer loans with excessively high interest rates, severe collection terms if the borrower defaults, and often operate outside of the law.

Those who seek loans from locations other than microfinance banks or recognized organizations, according to the CBN governor, are at greater risk.

“There is no need for you to go to loan sharks for a loan. People normally go to loan sharks because they are desperate and can’t access the bank,” Emefiele said.

Also Read: Emefiele: CBN Will Improve Access To Finance, Credit For Households, SMEs In 2022

“We found out that those that are vulnerable are households who need money to do their businesses but they can’t access bank finance and as a result go to loan sharks who charge them way above or two times higher than the amount borrowed and expected to pay back in 90 days and if that doesn’t happen, they seize your house or bikes.

“We can only continue to advise that there is no need to go for loan sharks. The central bank has put in place the avenue through which you can raise your finance, like through the target credit facility or the SMEs loan that was set up through our microfinance banks.

“You don’t have to owe anybody, just go to the portal and fill the form, send your data, and if it’s correct, you will be able to access loans.”