CBN Policy On Loan And Repayment You Should Know Before You Borrow From Nigeria Banks

It’s that time of the year when things have really become very tough for banks and other financial companies.

Writing from a bankers perspective, you would hear complains of massive increase of bad loans and non performing loans in their financial records.

Central Bank of Nigeria remains the reason why some Nigerian bank stills exist till today. CBN is the skeletal structure onto which Nigerian banks fall back to in times of despair. This time not only one bank is calling for intervention from the CBN, but all Financial houses.

Their is no doubt that the present economy situation is not conducive for a repayment of a huge loan. Many borrowers are finding it extremely difficult to repay their obligations. I sincerely believe that the reason why many individuals are finding it difficult to repay their loans ,should be factored on the negatives effects of covid-19 pandemic on businesses.

Their is no doubt that the present economy situation is not conducive for a repayment of a huge loan. Many borrowers are finding it extremely difficult to repay their obligations. I sincerely believe that the reason why many individuals are finding it difficult to repay their loans ,should be factored on the negatives effects of covid-19 pandemic on businesses.

Banks do not want to hear your excuses on why you haven’t paid back their money. Surfing through the internet today, I remembered that the Central Bank of Nigeria had recently giving a new policy to banks and financial houses on how to reduce their bad loans from their books. So I decided to break it down to simpler ways for people to understand the policy.

Please read the following sentences slowly to comprehend, below is the CBN policy on loan recovery explained in Simpler form

What Is GIS : GIS stands for Global Standing Instruction, it’s a tool that has been approved by the Central Bank of Nigeria to enable financial sectors reduce their NPLs(Non Performing Loans) in their books. In other way , the Nigerian financial houses have been giving the power, to collect all outstanding due repayments from any account of the borrower that is linked with BVN (Bank Verification Number).

In a lay man’s understanding, if for an instance you collected a loan of 20,000 Naira from Access Bank. And you don’t repay on the due date, Access Bank has the approval to collect the money from any of your accounts in Nigeria that has your bank verification number. It simply means that now repayment of bank loans , can come from any other bank account, you that you have which is linked with your BVN.

Even if you are the type that saves your money in monetary wallets like opay, am sorry to say , your money would also be debited, as long as your bank verification number is linked to that wallet.

I honestly think this is a good step for Nigerian banks, and also a warning to all loan defaulters. All loan defaulters should immediately start paying up their loans. This is because, with this type of policy the bank might debit you unexpectedly, and believe me this is so discomforting.

If you are owing financial companies like Okash, Sokoloan, Branch and so on , please repay your debts now.

See below screenshot of the CBN Policy posted from their website.

Nelson

Omotimehin Nelson is a Nigerian award-winning content writer. He derives passion for creative writing. Join me

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