Abia State Micro Finance Bank Set To Launch Collateral-Free Credit Scheme To Boost Businesses

In its bid to assist small scale entrepreneurs in the state boost their businesses, the Abia State Micro Finance Bank has concluded plans to formally launch the Cluster Credit Scheme that would empower traders with non-collateral loans this September.

This is part of the measures being taking by the state government to impact positively on small business holders of Abia State origin.

The new Managing Director of the Bank, Mr. Kingsley Nwobilor, revealed that through the Cluster Credit Scheme, loans would be given to traders through their different associations.

Nwobilor, who is a reputable Economist and a former staff of the Nigerian Industrial Bank, said that the desire of the governor of Abia State is to ensure that traders of Abia State origin are supported financially in their businesses, especially those in the popular Ariaria market in Aba, including the Aba shoe makers.

Passing the loans to the traders through their associations, he said, would enable the bank trace and monitor the beneficiaries.

“In the Cluster credit scheme, we intend to give loan to traders through their different associations, making it easy for us to identify them. This credit attracts single credit interest rate and does not require collateral. We intend to identify and extend this loan opportunity to different micro level small traders and Artisans through their associations. This product will be launched by the end of September” he said.

On September 3, 2021 the Abia State Government unveiled the new leadership of the Micro Finance bank under Mr. Nwobilor, before the Abia State Chambers of Commerce, Industry, Mines and Agriculture.

The Bank was created in 2017 by the Governor Okezie Ikpeazu with the aim of supporting micro traders or the SMEs in the state.

Speaking at the unveiling, Nwobilor, a financier expert previously based in Germany, had promised to perform the duty creditably. “I have passion for micro credit businesses. I am an Economist and worked with Industrial Development bank. I understand the terrain and I understand what Aba people want. What we are unveiling today is a microfinance bank and we want to grow your businesses. The Governor wants to empower the small business traders and that’s what we would be doing” he reassured, while thanking the governor for considering him worthy of the appointment.

Apart from the cluster Credit Scheme for Traders, other products of the bank for the Abia State SMEs include: Save to own for Keke and Taxi Drivers, Thrift Savings Credit Scheme for traders especially market women, and the Abia SME Bank Diaspora Investment Fund which is a fund to be contributed by Diasporas to support mostly youth driven businesses