NIRSAL Microfinance Bank (NMFB) offers loans to support households, small businesses, and farmers in Nigeria. These loans, backed by the Central Bank of Nigeria (CBN), help people grow their businesses or meet personal needs. However, repaying these loans on time is important to avoid penalties and maintain a good credit record.
This blog post explains how to repay your NIRSAL loan, understand the repayment schedule, and other key details in simple terms.
What are NIRSAL Loans
NIRSAL loans include programs like the COVID-19 Targeted Credit Facility (TCF), Agri-Business/Small and Medium Enterprise Investment Scheme (AGSMEIS), and On-Balance Sheet Lending (OBSL).
Each loan type has its own terms, such as interest rates and repayment periods. For example, the COVID-19 TCF loan has a 5% interest rate until February 28, 2023, and 9% afterward. The repayment period is usually 36 months with a 12-month moratorium (a period where you don’t pay principal or interest).
Knowing these terms helps you plan your repayments.
Steps to Repay Your NIRSAL Loan
You can repay your NIRSAL loan by following these easy steps:
- Check Your Loan Status and Schedule
Visit the NIRSAL MFB website and go to the “Help Center.” Click on the “Loan Repayment Portal.” Enter your Bank Verification Number (BVN) or account number, complete the reCAPTCHA, and submit. This shows your loan balance and repayment schedule. You can also visit a nearby NIRSAL branch to get your repayment schedule. - Fund Your Loan Account
Ensure your NIRSAL loan account has enough money for repayments. Your account number was sent to your phone via SMS when the loan was approved. You can also find it in your loan offer letter on the NIRSAL website. Deposit money into this account regularly to avoid missing payments. - Set Up Automatic Debit
NIRSAL uses your BVN to link all your bank accounts. If you don’t set up automatic debit, the bank may deduct repayments from any of your accounts. Visit a NIRSAL branch to activate automatic debit for smooth repayments. This prevents unexpected deductions. - Make Timely Payments
Repayments usually start 30 days after the loan is disbursed. For example, COVID-19 loans require fixed monthly payments covering both principal and interest. Pay on time to avoid penalties or higher interest rates. Timely payments may also qualify you for the Interest Drawback Program, which offers rebates on interest paid. - Contact Customer Care for Help
If you have issues, call NIRSAL’s customer care at +2349010026900, +2349010026907, or +2347041800003. You can also email info@nmfb.com.ng or visit a branch. NIRSAL has 115 branches across Nigeria, with its headquarters at House 1, Plots 103/104, Monrovia Street, Wuse 2, Abuja.
Understanding the Repayment Schedule
The repayment schedule shows how much you need to pay monthly and when payments are due. For example:
- COVID-19 TCF Loan: Repay over 36 months with a 12-month moratorium. Payments start after the moratorium.
- AGSMEIS Loan: Up to N3 million with a 5% interest rate and a maximum of 36 months repayment.
- OBSL and SALAD Loans: Repayment starts 30 days after disbursement and can last up to 90 days for SALAD or 365 days for Petty Cash Now-Now loans.
Check your schedule regularly to stay on track. Missing payments can lead to deductions from your other bank accounts or affect your eligibility for future loans.
Tips for Successful Repayment
- Budget Wisely: Set aside money each month for your loan repayment.
- Track Your Payments: Use the NIRSAL portal to monitor your balance and ensure payments are recorded.
- Avoid Default: Defaulting can harm your credit score and lead to automatic deductions via your BVN.
- Seek Help Early: If you can’t pay on time, contact NIRSAL immediately to discuss options.
Why Repaying on Time Matters
Repaying your NIRSAL loan on time keeps your credit record clean. It also makes you eligible for future loans or government programs. For example, you must clear your COVID-19 loan before applying for another federal SME loan. Late payments may increase your interest rate or lead to legal action.
Challenges and Solutions
Some borrowers face issues like unexpected deductions or difficulty accessing repayment information. For example, one beneficiary reported money being deducted from another account without consent. To avoid this, ensure your loan account is funded and communicate with NIRSAL early. If you believe your loan was a grant, note that NIRSAL loans are not grants and must be repaid.
Final Thoughts
Repaying your NIRSAL loan is straightforward if you follow the steps above. Check your repayment schedule, fund your account, and pay on time. Use NIRSAL’s customer care or visit a branch for support. By managing your loan well, you can grow your business and maintain a strong financial reputation. Start today by visiting nmfb.com.ng or calling NIRSAL’s helpline.
