To boost economic activities in the country and improve the living standards of citizens, financial experts urged the federal government to introduce policies that would allow small businesses to have increased access to loans.
The experts, who run a digital bank, Branch, said the government needs to demystify the idea of lending in Nigeria to provide useful financial services to low to middle class people.
In a statement released yesterday, professionals said that the Nigerian economy is heavily dependent on the activities of people belonging to the low to middle class whose activities stimulate the growth of the national economy.
“Even more, Nigerians need accessible loans because they are very useful for the survival of small businesses, and even big businesses and governments. Many people in the low to middle income category often need some sort of help between paychecks.
“Records show that over the past five years, micro, small and medium-sized enterprises account for 50 percent of industrial jobs and 84 percent of total employment in Nigeria, while also contributing around 49 percent to GDP. from the country. Despite this, it is surprising to see that traditional banks in Nigeria do not offer much financing to small businesses and low income people, and even when they do, they demand a lot of proof of creditworthiness and impossible rates. as interest on the principal amount, ”the statement read.
Digital banking experts said their business is successfully adapting to the lending policy towards small businesses and individuals.
They added, “This is why we have set the tone by showing how easy and beneficial lending can be for both the borrower and the lender. Branch thrives on its lending policy that is accommodating to small businesses and individuals. Unlike many loan sharks today, Branch is strict against selling customer data or sharing customer contacts with third parties. Branch offers the easiest access to digital loans in Nigeria, with access to approximately 500,000 loans.
The loan application process only takes a few steps to complete from the comfort of a mobile phone. There are no requirements for guarantees or guarantors. It’s an app that provides a safe space for people who need loans the most, and fast too. Having perfected the art of smooth loan repayments, Branch doesn’t have to charge late fees to those who are late in repaying. On the contrary, more accommodating options are offered to defaulters to help them meet their loan repayment plans. “