The Federal Government’s consumer credit scheme anchored by the Nigeria Credit Corporation (CREDICORP) is beginning to take shape with details of interest rates and payment tenure showing a more friendly interest rates regime compared with what digital lenders currently offer.

News sources confirm that the interest rates on loans under the scheme range from 4% monthly to 22% annually.

It is worthy of note that digital lending platforms, on average, currently charge up to 10% monthly interest rate and a 120% annual percentage rate.

Although the scheme started with civil servants, who have now received up to N3.5 billion in a few days according to the latest data received by the Corporation, CREDICORP is forging ahead with the expansion to the general public.

Two of the partnering financial institutions, Accion Microfinance Bank and Abbey Morgage Bank confirmed to news sources that the working-class Nigerians can now apply for the loans through them.

Five banks are already participating in the government’s low-interest credit scheme. These banks are FCMB Credit Direct, Wema Bank, Accion Microfinance Bank, Letshego MFB, and Abbey Mortgage Bank.

Nigerians can borrow between N50,000 and N1 million at a monthly interest rate of 4% through Accion MFB. The loans have a term of 4 to 12 months. However, it takes 3 days to get a loan from Accion MFB, unlike the instant loans offered by digital lenders.

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