By NewsBits
The Registrar, National Collateral Registry (NCR), Bullus Zgabawa Musa, said the scheme was to enable MSMEs have access to finances and reduce the challenges of collateral as a requirement for loans.
Represented by the Assistant Director in the CBN, Dr. Xavier-Itam Okon, Musa said financial institutions were being carried along in the scheme, saying the programme was organised by the CBN in conjunction with SEDIN of Deutsche Zusammenarbeit (GIZ), a German agency.
He said “The country needs MSMEs more than ever before and the NCR was created in 2015 through the CBN and development partners. When you are in a position to go and borrow from banks and financial institutions, they require you to provide collateral and most times collaterals that are not movable, but the NCR was created to deal with collaterals that you can easily move from place to place.
“With the NCR, you can use your farm equipment, your crops, your produce, your vehicle, your motorcycle, your trinkets, and other things that you can still be useful while accessing the loans, that is what the law says. All you need to do is to walk to the financial institution, they will value what you are presenting and give you the loan. You can use the same item in more than one bank, but the only issue is that the first bank would enjoy the right to recover its loan from the collateral first before the other bank. The law allows you to continue to use the collateral while the loan is subsisting.”
