The Central Bank of Nigeria (CBN), says it will issue loans at five per cent and with no collateral to Small and Medium Enterprises (SMEs) through the NIRSAL Micro Finance Bank (MFB). The CBN Governor, Mr Godwin Emefiele, said this at the tour of the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) MFB in Gwagwalada, a satellite town in Abuja on Wednesday. He said the loan would be issued under the Agri-Business Small and Medium Enterprises Investment Scheme (AGSMEIS), an initiative of the Banker’s Committee. Emefiele said the loan would run for tenure of seven years with two years moratorium. He said that the fund, made up of five per cent Profit After Tax (PAT) from Deposit Money Bank’s (DMBs), was being set aside to support the SMEs in agriculture and other types of small businesses. According to him, the initial capital base of the bank is five billion naira.

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