‘More funds will drop lending rates’

  Olufemi Babajide, chairman, National Association of Microfinance Banks (NAMB), South-West zone, said that lending rates would not reduce in the microfinance sub-sector unless operators have access to more funds.

Babajide made this known in an interview with the News Agency on Nigeria (NAN) in Lagos on Monday.

He said that the current lending rates were between the range of four percent and 10 percent, a situation which he described as “unviable” for the sub-sector’s growth.

“Lending rates will only reduce when microfinance bank owners are able to shore up the volume of cash at their disposal”, he said.

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