BoI offers zero interest rate on loans to corps members
The Bank of Industry (BoI) yesterday said it has revised its interest rates for corps members under its Graduate Entrepreneurship Fund (GEF) programme, to zero per cent interest charge from 9% as part of the moves to encourage entrepreneurship and aid business growth.
The GEF scheme being implemented by the Bank in partnership with the National Youth Service Corps (NYSC) Directorate currently on the second edition, has recorded over N262.9 million disbursements to 177 successful candidates.
The bank,in a statement has also decided to further encourage such young entrepreneurs by administering their loans at zero per cent interest charge effective 1st May, 2017.
According to the bank, existing GEF loans and those to be disbursed from 1st of May 2017, will require repayment of only the principal amounts, while the 177 candidates that have been financed under the scheme will be required to pay loan interest that accrued up to 30th April, 2017.
It said as at March 31, 2017, it approved N583.8 million for disbursements for entrepreneurs under the scheme,adding that the gesture was motivated by the larger part of the
177 candidates who have exhibited strong dedication to their businesses and have demonstrated unusual commitment to repayment of their loans including the 9% interest portion.
“The Bank of industry is highly delighted in the outcome of its investment in these young Nigerians. The Bank firmly believes that entrepreneurship is a critical pathway to resolving the worrisome unemployment problem in the country. Hence, the Bank desires to ensure the businesses that have been created through the GEF programme remain sustainable with progressive migration from small businesses to medium and eventually to large enterprises.
“It is believed that that this gesture will further attract young Nigerians that are undergoing their one-year compulsory National youth service to embrace entrepreneurship by participating in the GEF programme.
“It is pertinent to reiterate that the zero per cent interest charge on loans only applies only to the GEF programme which is implemented in partnership with NYSC Directorate", the bank added.