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COVID-19 Targeted Credit Facility: Why your BVN does not Exist

A lot of applicants of the COVID-19 Targeted Credited Facility Loan especially the 2021 applicants who have not witnessed the processes involved before an approval is granted to their loans have raised the question, " Why BVN does not Exist" when you check your loan status.

While the answer is simple, it is important to understand the processes involved before a loan is approved for disbursement by the Nirsal Microfinance Bank.

According to NMFB, loan approval and disbursement is not a sole decision of the bank. For a loan to be approved, the application tendered would be sent to the Central Bank of Nigeria for  "review" - to know if it met the standard set up for the Scheme.

Not all applications sent to CBN in any batch would be granted approval after review. Some will be rejected for one reason or the other (such as: existing CBN intervention loan, wrong choice of reasons for the loan application, incorrect or incoherent application data, among others) while some will be obviously approved.

When a Loan is approved by the Central Bank of Nigeria, the Nirsal Microfinance Bank is mandated by the apex bank to document and  disburse the loan to the list of approved applicants in the Batch.

Read Also:COVID-19 TCF: NMFB closes application for 2021 COVID-19 Loan, continues with approval and disbursement

Why is CBN not disbursing the loan by itself? The apex bank has a larger mandate in the control and harmonisation of financial institutions than lending to individuals.

CBN can not begin to chase individuals around to repay their loans, hence they looked for an institution they could trust it upon. That brought the idea of Nirsal Microfinance Bank establishment. It is the duty of NMFB to document and disburse the loan and ensure recovery of the loan and the interest from all beneficiaries.

So why does your BVN not Exist when you check your status? "BVN does not Exist" does not mean that you application was not recieved by the application portal.

However, the Nirsal Microfinance Bank does not collate or store applicants BVN for any purpose. The bank only knows you when your loan has been approved, recorded and disbursed. That's when you become a client of the bank. They will then open a Nirsal Microfinance Bank in your Name to enable you pay back the loan

That's the major reason why the application portal https://nmfb.com.ng/covid-19-support, https://nmfbloans.nmfb.com.ng/nmfbloanapplicationportal is different from the portal used in checking Approval status https://covid19.nmfb.com.ng.

BVN and data of all approved loans by CBN are transferred to https://covid19.nmfb.com.ng where it is documented. Hence, if your loan is approved, it will pop-up your details and amount approved for you here immediately you enter your BVN, but if your loan is not yet approved, it will display "BVN does not Exist" as your BVN has not been documented in the portal  https://covid19.nmfb.com.ng.

Read Also:

COVID-19 TCF: Why your loan was rejected | Do not be a victim

COVID-19 Targetted Credit Facility: Why you may miss the TCF Loan |a must read

Feel free to use the comment section to ask for more clarification if necessary or express your thoughts on the subject matter.

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2 Comments

  1. Why my Bvn does not exist
    When checking my approval?
    Please notify me when application is approved

    ReplyDelete
  2. Good day All, My name is Nadia I applied for a loan Since April, 2020, but on December, 23 2020 the NIRSAL send me a Message for accepting the approval, on 24, December, 2020 I accept it. Upto now no Alert with my account. I visited the NIRSAL and my Bank Diamond/Access for clearing all the problems or to update the account. Sometimes when I visited the NIRSAL bank tell me I should wait, since no any developments. Last week, I re-apply for disbursements. Still no any improvements/development.
    So what are we going to do on my problems?

    Warm regards
    Nafisa Adam Muhammad

    ReplyDelete

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