Bauchi State government roll out interest free loan scheme to poor and vulnerable groups.
By Ishaq Hardawa
Bauchi State government to commence interest free revolving loan intervention scheme to poor and vulnerable groups.
The Director General Bauchi State Agency for sustainable microfinance Alhaji Nura Dan’madami made this known during the presentation of microfinance institutions building programme for porverty reduction revolving loan scheme in Bauchi.
Alhaji Nura Dan’madami said the aim of the scheme was to empower the poor and vulnerable people, targeting women, youth and persons with special needs who own small business enterprises.
He said the scheme would enhance access of the poor to credit facilities, strengthen microfinance institutions and accelerate financial inclusion.
The Director General explained that the guidelines were carefully articulated taking cognizance of past experience and the need to ensure sustainability of the scheme.
“So the MIFIN is about strengthen microfinance institutions in terms of overhauling the entire architecture looking at the Village serving and loans institution or servings and loan association which will constitutes demands aspect
Alhaji Nura Dan’madami maintain that the loan would be access through Microfinance institutions.
He said the agency would provide the funds for all lending while the microfinance institutions would recover the funds in a revolving manner.
” The state government Microfinance Institutions building Programme for poverty reduction (MIFIN) is a delibrate strategy for empowering microfinance institutions by providing them with capital, skills and networks. The programme will operates on the premise that if the capital, skills constraints of MFIs is address significantly, they will be able to perform their role of financial intermediation effectively and by extension, reach out to the deserving poor and provide them sustainabile access to financial services to boost their income”
Earlier the Commissioner State Ministry of Budget and planning Alhaji Aminu Hammayo said the programme is in line with the strategic vision of the present Administration in promoting business and sustainable investment.
Alhaji Aminu Hammayo explained that the state government has disburse about four hundred millions Naira to SMEs under the Nigeria covid 19 action recovery and economic stimulus (NG-CARES).
He urged the participants to critically contribute on the formulation of the guidelines for the scheme.
” As they roll out this Programme challenge them and be critical so that we can improve on the guidelines”
Radio Nigeria learned that an SME, is to benefit from a loan maximum of two hundred and fifty thousand Naira and the fund is revolving.
