The Federal Ministry of Youth and Sports Development had in a recent report stated several reasons why an applicant of the Nigeria Youth Investment Fund can be disqualified or Loan offer denied even after approval.
Among the key disqualifying factors is when an applicant has an existing or unpaid loan.
Others are:
"Applicant has a poor credit rating or currently has a non-performing loan
"Applicant failed to provide a valid BVN
"Applicants provided incomplete or incorrect BVN.
"Applicant did not provide valid or correct phone number for communications on further steps in the loan application"
"Applicant is older than 35 years old, which puts them beyond the age bracket for youth.
Many applicants however misinterpreted what sort of existing loan was being referred to in the context. Some applicants argued that the existing loans include unpaid loans from Loan Apps, Microfinance Banks and Commercial Banks.
It became neccessary at that point to clarify that the existing loan being referred to does not include existing loans from Loan Apps, Microfinance Banks and Commercial Banks.
If an applicant borrowed money from a Commercial Bank, Microfinance Bank or Loan Apps but yet to clear a started loan repayment, it will not and can not affect the applicant in accessing the CBN Intervention funds such as the Nigeria Youth Investment Fund.
The existing loan being referred to particularly is unpaid loan from other CBN Intervention Programmes such as the COVID-19 Targetted Credit Facility Loan or the Agri-Business Small and Medium Enterprises Investment Scheme (AGSMEIS Loan).
Related:CBN Intervention Programmes: AGSMEIS, COVID-19 TCF, NYIF, each per beneficiary | FAQ
However, if an applicant has repaid 50% of his/her existing CBN Intervention loan, then the applicant is eligible to be considered for any of the CBN Intervention Programmes again.
What may pose a threat to an applicant is when an applicant has refused to pay back a loan obtained from a Commercial Bank, Microfinance Banks or Loans Apps and the applicant's BVN has been reported severally. In that case, the applicant would have a poor credit rating.
A nonperforming loan (NPL), which occurs when a borrower defaults and hasn't made any scheduled payments of principal or interest for some time such as 90days past due date, can also be a threat in accessing the Nigeria Youth Investment Fund and other CBN Intervention loans.
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