The Federal Government plans to distribute N10 billion as Trader Moni loan to petty traders and artisans in the 2020 fiscal year.
Under the Trader Moni micro credit scheme, the Federal Government (FG), through the Bank of Industry (BOI) provides interest free and collateral free loan to petty traders and artisans. The loan ranges from N10, 000 to N100,000 per beneficiary.
The loan is part of the social intervention programmes under President Muhammadu Buhari led administration.
According to the 2020 Appropriation Bill signed into law by the President on Monday, N10 billion was allocated to BOI as ‘Grants to BOI to support low interest loan to SMEs’.
According to investigation also revealed that the same amount was allocated for the same purpose in the 2019 Appropriation Bill.
A BOI official confirmed to newsmen that the bank does not receive any other money from the FG apart from the fund received for disbursement as Trader Moni.
The first loan to an individual under the Trader Moni guidelines is N10,000. Upon payment of the first loan, the individual qualifies for a higher amount. The maximum amount allowed is N100,000.
While the first loan of N10, 000 can be collected without Biometric Verification Number (BVN) or bank account, the borrower must have a BVN and a bank account for the next set of loans.