Godwin Emefiele, governor of the Central Bank of Nigeria
(CBN), says Nigerians should beware of illegal money lenders, known as loan
sharks.
Emefiele said this on Tuesday at the end monetary policy
committee meeting in Abuja.
Loan sharks offer loans at extremely high rate returns,
strict terms of collection upon failure, and generally operates outside the
law.
The CBN governor explained that those who go to collect
loans from places other than microfinance banks or recognised institutions are
at bigger 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.
“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.”
He said several people have benefited from the microfinance
strategy to give out loans at affordable return rates, adding that CBN will go
after loan shark perpetrators.
“We have a large number of people who have testimonials from
the facilities we’ve made available and do not have to owe anybody,” the apex
bank governor said.
“The bank is putting effort to stop loan sharks, and when
these people are found, they will be dealt with mercilessly.”
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