Avoid loan sharks, instead rely on microfinance institutions – Emefiele

The governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, warns Nigerians to Avoid loan sharks.

That they should be wary of illicit money lenders known as loan sharks. 

Emefiele made the remarks on Tuesday at the conclusion of the Monetary Policy Committee meeting in Abuja. 

Loan sharks provide loans with exceptionally high interest rates, harsh terms of collection in the event of default, and often operate outside of the law. 

Those who travel to collect loans from locations other than microfinance banks or recognized organizations, according to the CBN governor, are at greater danger.  

“You don’t need to resort to loan sharks for a loan. Try and Avoid loan sharks. People usually turn to loan sharks when they are desperate and unable to reach a bank,” Emefiele explained. 

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“We discovered that those who are vulnerable are households that require funds to run their businesses but are unable to obtain bank financing. As a result, they turn to loan sharks, who charge them far more than or twice as much as the amount borrowed and expected to pay back in 90 days, and if that does not happen, they seize your house or bikes.”  

“We can only continue to urge them not to turn to loan sharks.” The central bank has put in place avenues for you to raise funds, such as the target credit facility or the SMEs loan set up through our microfinance institutions. 

“You don’t have to owe anyone; simply go to the portal, fill out the form, submit your data, and if it’s valid, you’ll be able to access loans.” 

He stated that some individuals have profited from the microfinance technique of providing loans at low interest rates, and that the CBN will pursue loan shark criminals.  

“We have a huge number of people who have testimony from the facilities we’ve made accessible and do not owe anyone,” stated the apex bank governor. 

“The bank is working hard to catch loan sharks, and when they are caught, they will be dealt with severely.”