NIRSAL Microfinance Bank has recovered N342.6 billion out of the N528.1 billion given out as loans to Nigerians during the COVID-19 pandemic.
The loan was disbursed in 2020 by the bank on behalf of the Federal Government under the COVID-19 pandemic economic recovery scheme.
It was gathered that the bank is using the Global Standing Instruction (GSI) system, a debt recovery tool that allows the bank to automatically deduct loan repayments from any financial institution where the debtor has funds.
The GSI system ensures that as long as a borrower remains active within the Nigerian financial system, the NMFB can collect its dues seamlessly.
“This system has become a critical asset in improving recovery rates for the microfinance bank, especially in cases where debtors hold accounts in multiple banks,” a source said.
In addition to the GSI system, NIRSAL MFB has said that its loan recovery efforts extend to the families of deceased borrowers.
Although it is practically impossible to collect from the deceased, NMFB officials have reported that in many cases, families – especially from the Muslim community – have voluntarily taken on the responsibility of repaying outstanding loans left by their loved ones.
“This cultural practice has contributed to the bank’s loan recovery success, even in challenging circumstances”, the source added.
