NIRSAL Bank Explains COVID-19 Loan Deductions
By Patience Ikpeme
NIRSAL Microfinance Bank (NMFB) has responded to complaints from beneficiaries of the COVID-19 Targeted Credit Facility (TCF), who say money has been taken from their accounts. Some have also questioned their loan balances and repayment records, and said they struggle to reach customer support.
The bank’s Head of Corporate Communication, Halimatu Lawal Idris-Omar, said in a statement on Friday that the bank had seen the media reports and public comments. She said it was important “to provide clarification on the issues raised,” and that the bank wanted to assure customers and the public of its commitment to “transparency, accountability and responsible banking practices.”
She reminded Nigerians that the Central Bank of Nigeria (CBN) created the COVID-19 Targeted Credit Facility as a loan to help households and businesses hurt by the economic effects of the pandemic. It was never a grant, she said. Before receiving the money, every beneficiary had to accept an electronic offer letter. The letter set out the terms, the duty to repay, and how the bank could recover the money if a borrower failed to pay.
On the deductions, the bank said it follows the rules approved by the CBN, including the Global Standing Instruction (GSI). Under the GSI, financial institutions can recover unpaid loans from eligible accounts linked to a borrower’s Bank Verification Number (BVN), subject to the applicable guidelines.
The bank admitted that some beneficiaries are unhappy about when deductions were made, how much was taken, what they still owe, and how hard it is to get repayment details. “We take these concerns seriously,” the statement said, adding that every customer should be able to get correct information about their loan account.
Mrs Idris-Omar explained that the purpose of recovery is to settle debts that borrowers agreed to pay. However, any beneficiary who is worried about a deduction, a mistake in repayment records, or the balance still owed should report the matter to the bank. Each case will then be checked against the customer’s account records so that it can be properly resolved.
The bank promised to investigate genuine complaints. If the checks show that a mistake was made, it said the matter would be handled accordingly.
Beneficiaries who want to know their loan status, repayment history or outstanding balance were urged to contact the bank through its official customer service channels.
The bank also warned beneficiaries not to deal with middlemen or any person claiming to represent NMFB on the COVID-19 loan. Customers should get information and clarification only from the bank’s approved communication channels.
NMFB said it remains committed to its mission of promoting financial inclusion, supporting micro, small and medium-sized enterprises (MSMEs), and making it easier for Nigerians to get finance. It promised to keep talking with stakeholders and to address customer concerns in an open, professional and responsible way. It added that it would protect the integrity of the loan programme while giving customers the guidance they need to resolve their complaints.
