Despite current problems that make it difficult for small and medium enterprises (SME) to access loans, some financial experts have insisted that MSMEs can access loans if they have a good credit history, the necessary documentation and structure in place.
The Chief Executive Officer of CRC Credit Bureau, Dr Ahmed Popoola noted that Nigeria had been experiencing a new wave of hurdles in access to credit citing research by the World Bank to substantiate his views.
- Sultan reacts to Daily Trust’s report, hails CBN over interest free loans
- Farmers, small businesses get CBN’s interest free loans
“The same study also confirmed that the probability of obtaining a bank loan by small firms increased from 28 per cent to 40 percent with the introduction of a credit bureau in a country.
In the past, access to finance through loans as an SME was virtually impossible without collateral.
“But with Credit Bureaus, financial institutions can access the credit history of these businesses or the personal credit history of the business owners along with other requirements to decide whether to grant them loans or not”, the credit expert added.
Join Daily Trust WhatsApp Community For Quick Access To News and Happenings Around You.
