Nigeria: Collateral is no longer an issue, says BOI
The Bank of Industry (BoI) Managing Director has said that collateral is no longer an obstacle to access credit.The
Bank of Industry (BoI) Managing Director
said that collateral is no longer an obstacle to access credit.
Evelyn Oputu made this statement at a conference in Lagos this week, where she unveiled new products that allow third party guarantees on loan applications.
"Collateral is not an issue, what is important is the track record, attitude to debt servicing because credit has to do with integrity, if you have integrity issues definitely you cannot access the bank's fund," she said.
Mrs Oputu explained that the BoI has designed some credit schemes and products to address people without collateral through cooperative lending. She added that the bank also accepts peer group and reputable persons third party guarantees to give grants to applicants.
Small to medium-sized enterprises often have difficulties accessing credit as they
required by lenders, especially in their start-up phase.
In 2012, Nigeria had about 17.6 million SMEs employing about 32.4 million people, and contributing about 46.54 per cent of nominal GDP, according to figures from the CBN.