Tough times await bank customers who default on the repayment of their loans, as deposits in other bank account would be seized to service the loans.
This was one of the decisions reached at the end of the 345th Bankers Committee meeting in Lagos on Monday.
They agreed that the deposits in the customers’ other banks’ accounts should be used to service the unpaid loans.
They also agreed at the meeting that bank borrowers would be made to sign an agreement that if there was a default, the bank would have a right to access the borrowers other accounts.
The bankers also decided that vital information should be demanded from bank borrowers such as Bank Verification Number, Tax Identification Number among other documents.
Some of the bankers, during a press briefing after the meeting, said that this was necessary to boost lending in the small and medium enterprises’ sector, adding that it was necessary to assist the Deposit Money Banks to maintain a minimum Lending and Deposit Ratio of 60 per cent by September 30, 2019
CBN Deputy Governor, Aishah Ahmad, said the banks’ appetite to lend had been curtailed by some customers’ wilfully refusing to pay their loans.
According to her, this should not hinder honest borrowers from having access to loans.
Asides from using collateral, she said the banks were exploring other means such as using credit scores of the bank customers.
Speaking on efforts to ensure the 60 per cent Loan to Deposit Ratio target was achieved by September 30, Ahmed said it was also ensuring that the non -performing loans did not rise in the banking sector.
The Managing Director, Guaranty Trust Bank, Segun Agbaje, said, banks would soon start giving out more loans to the retail sector because they were important to grow the economy.
“If you don’t pay the loans you collected from a bank, we will use your deposits in other banks to service your loans,” he said,
On his part, the Managing Director, Access Bank, Herbert Wigwe, said the Bankers Committee was increasing its lending to the creative sector.
- ABBA KYARI: The Man, the Controversies - April 18, 2020
- Police arrests bribe taking officer exposed in video - November 11, 2019
- How herdsman killed brother for having amorous affair with wife - November 8, 2019