But the House said the rate "seems rather high, considering the group of people the fund is meant for, who are mainly artisans, small farmers engaged in subsistence farming and small scale business owners."
The lawmakers expressed their concern that "despite the fact that micro-finance banks are currently charging between 30 and 40 percent as interest, the CBN has granted them powers to fix the rate of interest when they lend to industrialists, a situation that, if not properly monitored, may be abused and defeat the aim of the scheme."
The lower chamber of the
This followed the adoption of a motion on the matter moved by Rep
The House also urged the CBN "to closely and carefully monitor the implementation of the scheme in order to prevent corrupt practices by bank owners or their privies who may appropriate funds."It further directed the apex bank to liaise with the relevant associations of micro-finance banks in the disbursement of the funds, saying efforts should be made for easy accessibility of the funds by intended beneficiary, including the 60 percent reserved for women, at minimal interest rate.
Most Popular Stories
- Obama Administration Releases Proposal to Regulate For-Profit Colleges
- Apple, HP, Intel May Take a Hit from Slowdown in Smartphone Sales Growth
- Elizabeth Vargas' Husband Marc Cohn Addresses Rumors
- Keurig Adds Peet's coffee, Alters Starbucks deal
- FDIC Files Lawsuit on Behalf of Banks Allegedly Hurt by Libor Scandal
- Motley Crue's Nikki Sixx Marries Model Courtney Bingham
- U.S. to Relinquish Gov't Control Over Internet
- Chinese e-Commerce Giant Alibaba Gears for IPO in U.S.
- Some California Cities Seeking Water Independence
- Will Missing Malaysian Jet Prompt Aviation System Change?