CBAN: Banks to Accept Movable Assets as Collateral

Read Time:1 Minute, 12 Second

The Credit Bureau Association of Nigeria (CBAN), Central Bank of Nigeria (CBN) and International Finance Corporation (IFC) are working towards improving access to loan facilities using movable assets as collateral.
The News Agency of Nigeria (NAN) reports that the institutions held a one-day workshop in Kaduna, on Wednesday, to create the needed awareness on the new financial infrastructure.
Representative of the IFC, Mr Ubong Awah, identified the new infrastructure as Collateral Registry (CR) and Credit Reporting System (CRS).
Awah explained that the infrastructure would allow small and medium-scale enterprises (SMEs) to use any movable asset as collateral to access bank loan.
He said that the National Collateral Registry (NCR), an online centralised-database which commenced operation in May, now allows financial service providers to register security interest in movable assets.
He said that the registry, set up by the federal government was  being maintained in line with CBN regulations.
According to him, the innovation would facilitate easy lending by financial institutions to individuals, farmers, micro entrepreneurs and SMEs.
“The registry will enable these categories of borrowers to use movable assets such as inventory, livestock, crops equipment, vehicles and accounts receivable as collateral for loans.”
He also described CRS as a document that contains information regarding a consumer’s credit history based on data gathered electronically by financial institutions and other creditors.
He said that the reports would help financial institutions assess the credit worthiness of a potential client.
 

Happy
Happy
0 %
Sad
Sad
0 %
Excited
Excited
0 %
Sleepy
Sleepy
0 %
Angry
Angry
0 %
Surprise
Surprise
0 %