By Mumini AbdulKareem
Kwara State House of Assembly has directed the state Ministry of Commerce and Cooperatives to consider a downward review of terms and conditions attached to credit schemes under the Micro,Small and Medium Enterprises to enable the rightful beneficiaries derive maximum benefit from them.
Reading the resolution, the Speaker, Engineer Yakubu Danladi-Salihu while commending the Micro Finance Banks for their services, stressed the need for members of the public to be guided on the interest rate before applying for such loans.
Danladi -Salihu said findings have shown that sometimes people apply for credit facilities without minding the interest rate because they have serious financial commitment which must be fulfilled, but called for caution.
The motion titled “The need to overhaul operation of Micro Finance Banks for the benefit of the people of Kwara State was sponsored by member representing Owode/Onire constituency, Alhaji Ambali Ibrahim and two others.
The House further called on members of the National Assembly from Kwara State to champion the cause of moving for an overhaul of operations of Micro Finance Banks by the central bank of Nigeria to bring down their interest rates.
The legislators also implored the National Association of Micro Finance Banks to ensure that members live up to their statutory functions of alleviating poverty, growing small business by reducing interest rates on loans and creating room for easy access to the facilities.
According to the lawmakers, the aim of setting up micro finance bank is to alleviate poverty by giving small business owners opportunity to access credit to grow their business.
They however expressed concern that the high interest rates and other bottle necks attached to the loan from micro finance banks have defeated this laudable objectives, pointing out that most of the potential beneficiaries reside at the grassroots.
Some members also advised the Micro Finance Banks to give loans to people who will have capacity to repay, advocating synergy with the 16 Local Government Areas of Kwara State for better service to the downtrodden.
