Microfinance bank to assist 300 enterprises to obtain N2bn CBN loan

The University of Calabar Microfinance Bank said it would assist 300 micro and medium enterprises in the state to assess N2 billion loans from the Central Bank of Nigeria (CBN). Mr John Owan, Chief Executive Officer of the bank, made this known on Wednesday in Calabar during an interview with the News Agency of Nigeria (NAN). Owan said that the loan would be facilitated by the university’s microfinance bank, Cross River Government and the South-South Entrepreneurship Development Centre in Calabar.

According to him, the university’s bank, in collaboration with the Cross River Government, has reduced the interest rate pegged by the CBN from nine to six per cent. He said that this would enable small and medium enterprises in the state to assess the N2 billion loan from the apex bank to grow their businesses.

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The CEO said that the micro finance bank had improved processes for service delivery within the university’s community and its environment. “The unical micro finance has achieved financial inclusion through opening of more branches in the rural areas and now moving into e-payment transaction platform. We intend to subject the bank to an international rating on the 6th of March this year. We are also planning to move from micro finance bank to a public limited company through a five year development plan. So far, we have moved from a dividend of five kobo in 2012 to 15 kobo in 2013. Hopefully, with the approval of our discussions in the annual general meeting, we intend to pay a dividend of 20 kobo to our shareholders,’’ he said.