A Central Bank of Nigeria (CBN) Credit Conditions Survey showed that banks are tightening the noose on unsecured credit to households, a situation which will force down the demand on such loans.
The survey however showed increasing appetite for household loans perhaps due to the drop in incomes following the COVID-19 lockdown.
Household loan is designed to meet the short term financial needs of individuals or households with consistent income.
The CBN latest survey covers secured and unsecured lending to households, lending to public non-financial corporations (PNFCs), small businesses and other financial corporations (OFCs).
The latest edition of the survey report presents trends and developments in credit conditions in the second quarter and its expectation in the third quarter of 2020.
The survey was conducted in July 2020, and the results are based on lenders’ own responses.
The Q2 2020 credit condition survey for households, small businesses, and corporate entities indicated increased availability of both secured and unsecured credit to households, as well as corporate entities.
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