Zulum launches N1b interest-free loan

Umara Zulum, on Wednesday launched the disbursement of N1billion loan scheme to small and medium scale businesses.

The beneficiaries are mostly women groups, trader unions and associations who are serving as sureties for their members.

The loan, according to the governor, is the first tranche of N2billion loan to small and medium scale entrepreneurs in collaboration with Bank of Industries put together by the Borno Renaissance Micro Finance Bank Limited.

Zulum said the loan is targeted at Small and Medium Scale Entrepreneurs in the state that has been affected by the Boko Haram insurgency and the recent COVID 19 pandemic.

He noted that the credit facility will revive business activities in Borno State, encourage employment opportunities in the private sector as well as expand the sources of income of the teeming unemployed youths in the state.

“Today, 15,861 individuals who are members of 12 trade unions and associations are expected to benefit from this disbursement amounting to N994,930,000.00.

“This loan is interest free and its payable in four years with a moratorium period of six months within which businesses are expected to pick up and generate profit,” the governor said.

He added: “Any individual who is able to settle the disbursed amount within the stipulated time shall enjoy 50 per cent waiver and shall automatically qualify for another loan.”

The governor also announced that his administration is in talks with the Central Bank of Nigeria (CBN), African Development Bank and the Icanelopment Bank to create more windows of opportunities for small and Medium Scale farmers in the state.

He urged the beneficiaries to make good use of the money.