Sequel to the meeting held between the Microfinance and Enterprise Development Agency, Microfinance Banks and Micro, Small Medium Enterprises on the recovery of SME Development Fund, the Agency has held another meeting with Guarantors of Loan Seekers who are yet to pay up their various stipulated amount collected.
Speaking at the meeting, Director General MEDA, Otunba Kayode Fasae said the Agency is adopting strategic means of recovering unpaid loans.
“We have sent out Bulk Messages, letters to all the guarantors of the N1.5Billion MSME Development Fund Loans. The aftermath of the messages has seen us recovered up to N30.3million. Since then, other guarantors, who’s subject are yet to pay up have been trooping to our office, seeking lasting solutions to their plights.
“Majority of them never thought the government will launch a recovery plan as they thought this is one of the numerous loan facilities they could get and never pay back.
“Some of them are not even properly tutored on the implications of being a guarantor. Therefore, we look to reconcile all the loan applicants with their various guarantors. This is continuous step towards recovering the loans before we begin another programme of such. We are taking drastic steps on these guarantors by effecting deduction of certain amount from their salaries starting from September 1, 2019. This is not a threatening move but rather a means of resolving the problem as we realize that majority of these guarantors (Civil Servants). We are working closely with Financial Banks and various Microfinance Banks in the state to achieve this feat,” he said.
Managing Director/Chief Executive Officer of EK Reliable Microfinance Bank who is also the Zonal Chairman, National Association of MFB South West, Mr. Oluwatoyin Famoroti said gaurantors who find themselves in this unfortunate situation lacked enough information and orientation on the implications of being a guarantor adding that the MFB community in Ekiti will do its possible best to assist MEDA in resolving the issue.
“The MSME Development Fund is national programme and the conditions for implementation say moneys (a sum of N2Billion each must be disbursed through MFBs in each state of the federation which Ekiti State accessed N1.5Billion in two trenches. Each beneficiary of this fund is supposed to have one or two guarantors depending on the amount pushed for and the sectors which are the Micro and the SMEs,” he said.
Speaking in anonymity, some guarantors from various local governments said they are not fully enlightened on the proceedings of the Fund.
Respondents from Oye-Ekiti and Ifelodun Irepodun Local Government Areas said they stood in for colleagues at the LGA offices who collected loans of N800, 000.00 and N750, 000.00 respectively are yet to complete their payment. They urged the state government to come to their aid, saying that they cannot afford to pay the loan balances collected by their beneficiaries.
