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In its bid to assist Small Scale Entrepreneurs (SMEs) in Abia State to boost their businesses, the Abia State Micro Finance Bank has concluded plans to formally launch this September, a cluster credit scheme that would empower traders with non-collateral loans. This was part of the measures being taking by the Government of Abia State to impact positively the small business holders in the state.
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, a reputable economist and former staff of the Nigerian Industrial Bank, said that the desire of the Governor of Abia State is to ensure that traders of Abia origin are supported financially in their businesses by the government, 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 end of September,” he said.
