- Tradermoni: Bank of Industry Starts Second Phase
The Bank of Industry has started the disbursement of N15,000 to those beneficiaries that have paid back their first N10,000 loans.
According to the lender, the second phase was in response to the increasing beneficiary repayments recorded under the scheme.
This the bank attributed to its flexible weekly loan repayment plan of N430 per week paid over six months.
“If these beneficiaries repay their first loan as promised, they immediately qualify for the second level N15,000 loan. After repaying the second loan, these beneficiaries will qualify for a N20,000 loan, then N25,000 loan, and finally they graduate into the MarketMoni loan program where they can get up to N100,000 in interest-free, collateral-free loan. Through a gradual step by step process, these MSMEs can grow and create jobs.”
“This incentive-based model is working. Despite the fears of traditional lenders on giving loans to MSMEs — in part due to lack of formal identification, limited financial track record, and no collateral — TraderMoni continues to achieve success with loan repayments”, the bank explained.
Some of the beneficiaries, like Mrs Aishetu Adamu – a condiment and medicine seller at Bolori market in Maiduguri Borno State, migrated to the next phase after paying the initial loan of N10,000.
Speaking on the benefit of the initial loan, Adamu said the loan was really helpful in promoting her business.
Another beneficiary was Mrs Lucky Solomon, who revealed she was happy with the improved profits she made from the first N10,000 loan she received.
With that, she was able to repay the loan without delay and opt for the next loan.
Aishetu and Solomon were part of the many beneficiaries in Lagos, Osun, Kano and Borno who have paid back their first, and gotten their second level loan amounts.
“Beyond providing loans for MSMEs, GEEP is focused on sustainably boosting the MSME sector in an organised and effective manner. By requiring that beneficiaries seeking higher loan amounts provide a bank account (and BVN), the TraderMoniGEEP entrepreneurs will be on- boarded into the formal financial services sector. Consequently, these beneficiaries will be able to expand their businesses in the medium to long term; and this is already happening, one loan disbursement and loan repayment at a time”, the bank added.
