FG Begins Disbursement Of N20b To Petty Traders

SME Finance - FG Begins Disbursement Of N20b To Petty Traders

The federal government has announced take off of Trader Moni, a scheme that offers N20 billion collateral free loans to petty traders in the country.
According to source, the scheme will offer N10, 000 collateral free loans to petty traders in the first instance and much more after repayment. “We plan to reach 2 million such beneficiaries across the country between now and end of the year,” he said. This is to further enlarge the financial inclusion agenda for all Nigerians regardless of social class and economic status. According to a statement issued by the Senior Special Assistant to the Vice President, the scheme would grant a minimum of 30,000 loans in each state of the Federation and the Federal Capital Territory.
“Altogether, the 2 million mark is expected to be attained on or before the end of this year, with petty traders in Lagos, Kano and Abia States set to be the first round of beneficiaries to draw the collateral free loans. “In addition to the 30,000 loans per State, States with larger populations like Lagos and Kano are expected to get more than 30,000 loans. Across the country, especially in the pilot states, about 500,000 potential beneficiaries have so far been enumerated.
“In order to identify the beneficiaries, no less than 4,000 enumeration agents have been engaged by the Bank of Industry which is deploying the new scheme. “TraderMoni is designed to help petty traders expand their trade through the provision of collateral free loans of N10, 000. The loans are repayable over a period of six months. “Under the scheme, beneficiaries can get access to a higher facility ranging from N15,000 to N50,000 when they repay N10,000 within the stipulated time period,” the statement read.
The statement said the goal of government is to use the TraderMoni to take financial inclusion down to the grassroots, the bottom of the ladder, considering the contribution of petty traders to economic development.  “The Federal Government is also aware of the fact that many of the petty traders don’t have what the commercial banks require to grant them loans. “This administration is keen to ensuring that such traders at that level are able to build their businesses and grow.
“TraderMoni was launched last Tuesday in five markets in Lagos State, with tens of thousands beneficiaries already. “The Lagos markets already reached are Mushin, Ikotun, Agege, Ketu, and Abule Egba markets. “The scheme will soon be taken to other states in the country, with Abia and Kano states next in line,” the statement further read.
Source: News Guru