COMCIN and NEAT Microcredit Unveil N100 Million Loan Scheme for SMEs
The Coalition of Microlending and Cooperative Institutions in Nigeria (COMCIN), in partnership with NEAT Microcredit, has officially launched a N100 million joint loan facility aimed at bolstering small and medium-scale enterprises (SMEs) across Nigeria. This initiative is designed to enhance financial access for grassroots entrepreneurs, with a particular emphasis on supporting women and youth in the informal sector.
Facility Structure and Disbursement
The loan scheme will be administered through participating Microfinance Institutions (MFIs), which will extend the funds directly to SMEs. This approach leverages the MFIs' existing networks and their direct engagement with businesses at the grassroots level, ensuring efficient and targeted distribution.
Mr. Micheal Ogbaa, Executive Director of COMCIN, representing Chairman Dr. Iredele Oyedele, highlighted that COMCIN does not lend directly to individuals. Instead, it operates through its network of microfinance and cooperative institutions, which then provide loans to end users. This model aims to strengthen micro-lending institutions while expanding financial inclusion.
Key Features and Eligibility
The loan scheme offers several attractive features, including low interest rates and flexible repayment plans. Approximately 90 percent of beneficiaries are expected to be women, aligning with efforts to promote gender equality in entrepreneurship. Eligible SMEs with proven integrity and a solid business track record can access up to N5 million each through the participating institutions.
Rollout and Current Progress
The rollout of the scheme has commenced in Lagos and will gradually extend to Abuja, the South-West, South-East, and North-East regions. So far, twelve micro-lending institutions have already benefited from the initiative, and 85 applications are currently being processed under the pilot phase, indicating strong initial interest and potential for widespread impact.
This partnership between COMCIN and NEAT Microcredit represents a significant step towards addressing the financing challenges faced by SMEs in Nigeria, fostering economic growth and empowerment at the grassroots level.
