Borno State Governor, Babagana Umara Zulum Wednesday launched the disbursement of one billion naira loan scheme to small and medium scale businesses in Borno State.
The beneficiaries are mostly women groups, trader unions and associations who are serving as sureties for their members.
The loan according to the governor is one billion naira first tranche of two billion naira loan to small and medium scale entrepreneurs by the Borno State Government in collaboration with Bank of Industries put together by the Borno Renaissance Micro Finance Bank Limited.
Today, 15,861 individuals who are members of 12 Trade Union and Associations are expected to benefit from this disbursement amounting to N994,930,000.00. This loan is interest free and its payable in 4 years with moratorium period of 6 months within which business are expected to pick up and generate profit,” Zulum announced.
He called on the Associations to monitor their members and ensure that the monies are recovered, stressing that, “any individual who is able to settle the disbursed amount within the stipulated time shall enjoy 50% waiver and shall automatically qualify for another loan.”
The governor also announced that his government is in high level talks with the Central Bank of Nigeria, African Development Bank and the Islamic Development Bank to create more widows of opportunities for small and Medium Scale farmers in the state.
He urged that beneficiaries to make good use of the money by investing it into businesses and not use it for personal consumption.