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BOI grants 3-month moratorium on loans, cuts interest rate by 2%



BOI grants 3-month moratorium on loans, cuts interest rate by 2%

The Bank of Industry (BOI) has offered a three-month moratorium for all the loans it granted to borrowers to enable them deal with the impact of the coronavirus outbreak on their businesses.

In a statement released on Monday, the BOI said the loan repayment holiday conformed with the presidential directive on loan moratoriums and “advised that customers requiring more than three months can apply for a further extension, which can be up to one year (12 months).”

It said the decision had been communicated to customers and partnering commercial bank.

In a related development, the BOI said it had collaborated with its funding partners to obtain interest rate cuts on all its funded projects from 10% to 8% per annum.

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“The Bank worked with the Nigerian Content Development Management Board to reduce the interest rates on credit facilities approved under its managed fund from eight per cent pa to six per cent per annum.

“Moreover, all intervention funds granted by the Central Bank of Nigeria (CBN) and disbursed by the BoI have been covered by the CBN’s palliative measures, which include moratorium extension and interest rate reduction to five per cent per annum, which has also been communicated to the relevant customers.

“The Bank has written to all the managing directors and chief risk officers of its partnering commercial banks, officially notifying them of the bank’s position on these initiatives.”

The statement revealed that other interventions by the BOI in the campaign against COVID-19 comprised a N700 million donation to the COVID-19 fund, the Lagos State Government and the FCT Ministerial Committee on COVID-19.

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