BoI to charge zero percent interest on loans to youths
As part of its efforts towards youth empowerment, the Bank of Industry (BoI) has revised its interest rates for corps members under its Graduate Entrepreneurship Fund (GEF) programme to zero percent interest charge from 9 percent.
This action was said to be in line with BOI’s efforts to encourage entrepreneurship and aid business growth.
According to the BoI, 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.
Moreover, the bank has decided to further encourage such young entrepreneurs by administering their loans at zero percent interest charge effective 1st May, 2017.
To this end, 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.
As at March 31, 2017, the bank has approved N583.8 million for disbursements for entrepreneurs under the scheme.
The bank explained that it 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 percent interest portion.
With the first disbursements already creating impact in the agriculture value chain and creative industry, the bank noted that N46.98 million is expected to be disbursed to the remaining 28 successful candidates who are in the various stages of complying with the loan requirements.
“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.
“It is pertinent to reiterate that the zero percent interest charge on loans applies only to the GEF programme which is implemented in partnership with NYSC Directorate”, the bank stressed.
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 noted.
