Cbn's new policy on 60 loans

You're referring to the Central Bank of Nigeria's (CBN) new policy on 60 loans!

As of 2022, the CBN introduced a new policy aimed at promoting financial inclusion and reducing the burden of debt on individuals and small businesses. The policy, known as the "60 Loans" policy, allows individuals and small businesses to access loans of up to N60 million (approximately $150,000) at a single-digit interest rate of 9% per annum.

Here are some key highlights of the policy:

  1. Eligibility: The policy is open to individuals and small businesses with a minimum credit score of 650 and a maximum debt service-to-income ratio of 30%.
  2. Loan amount: The maximum loan amount is N60 million, which can be used for various purposes such as business expansion, working capital, or personal needs.
  3. Interest rate: The interest rate is capped at 9% per annum, which is significantly lower than the prevailing market rates.
  4. Repayment period: The repayment period is up to 5 years, with a maximum of 3 years for working capital loans.
  5. Collateral: The policy allows for collateral-free loans for small businesses and individuals with a good credit history.
  6. Disbursement: The loans will be disbursed through participating banks and other financial institutions.

The CBN aims to achieve several objectives with this policy, including:

  1. Promoting financial inclusion: By providing access to credit at affordable rates, the policy aims to increase financial inclusion and reduce the number of unbanked individuals and small businesses.
  2. Supporting small businesses: The policy aims to support small businesses by providing them with access to capital at competitive rates, which can help them grow and create jobs.
  3. Reducing debt burden: By capping interest rates and providing longer repayment periods, the policy aims to reduce the debt burden on individuals and small businesses.

Overall, the "60 Loans" policy is a welcome development that can help promote financial inclusion, support small businesses, and reduce the debt burden on individuals and small businesses in Nigeria.