Market Moni Loan Repayment : How It Works

Market Moni loan scheme is a social intervention programme granting interest-free credit facilities to existing microenterprises of market women and traders, artisans, enterprising youth and agricultural workers.

The scheme of the National Social Investment Office is an initiative targeted at expanding the scope and scale of economic opportunity for the financially vulnerable. The Federal Government is executing MarketMoni through the Bank of Industry (BOI), a parastatal of the Federal Ministry of Industry, Trade and Investment.

The ‘no-interest’ loan scheme is accessible to beneficiaries through their accredited market associations and cooperatives. Upon confirmed membership of accredited market associations, provision of Bank Verification Numbers (BVNs), and assignment of a MarketMoni agent, beneficiaries qualify to obtain loans ranging between N10,000 to N100,000 repayable over 6 months, with a one-time 5% administrative fee to cushion costs.

MarketMoni “does not carry the usual interest tag that other such facilities would carry. Instead, beneficiaries only pay a one-time five per cent administrative charge which is also spread over 6 months. So if you are taking a loan of N50,000 for example, you would only pay N52,500 and it spread over 6 months. If you took a N20,000 loan, you would be paying back N21,000.

The beauty is there is no other cost or hidden charges as the case is with most credit available to this segment and which run up interests as high as 48% annualized.

MarketMoni’s 6-month repayment tenure eases the burden on the beneficiary. The entrepreneur is better able to focus their energies on growing their business rather than meeting aggressive targets. The loan also comes with a 2-week moratorium prior to commencement of weekly repayments starting on the third week of the life of the loan.

For example, a N20,000 loan beneficiary would pay back N875 weekly. A beneficiary who makes a daily contribution therefore pays less than N200 per day, an amount that can easily be set aside while reaping the benefits of significant injection of capital into their business. There is no other loan facility this affordable for the Nigerian base of the pyramid.

Below is the loan market moni repayment schedule :

Loan amount : ₦10,000
Administrative Fee : ₦500
Amount To Pay Back : ₦10,500.00
Weekly Repayment : ₦1437.50

Loan amount : ₦20,000
Administrative Fee : ₦1,000
Amount To Pay Back : ₦21,000
Weekly Repayment : ₦875

Loan amount : ₦50,000
Administrative Fee : ₦2,500
Amount To Pay Back : ₦52,500
Weekly Repayment : ₦2,187.50

Loan amount : ₦100,000
Administrative Fee : ₦5,000
Amount To Pay Back : ₦105,000
Weekly Repayment : ₦4375

More details at https://ift.tt/2Lm4cpo