ENUGU â€” Bank of Industry, BoI, has raised the alarm over the difficulty in obtaining Governorsâ€™ consent for mortgaged property to be used as collateral for loan facilities.
Managing Director of the bank, Mrs. Evelyn Oputu, raised the alarm during the launching of Enugu State Bank of Industry N1 billion Micro, Small and Medium Enterprises, MSME, Fund, at Golden Tulip Hotel, Enugu.
She disclosed that the bank had on its own, granted total loan facilities of N2.329 billion in Enugu State to Micro, Small, Medium and large enterprises outside BOI-Enugu State Government, ENSG MSME Fund.
Oputu, who was represented by a senior official of the bank, Barade Hassan, said the ugly development had proven to be a major bottleneck in implementation of the projects as it resulted in the inability of the bank to disburse loans to beneficiaries.
â€The BoIâ€™s experience in extending facilities to applicants in different parts of the country has shown that beneficiaries face similar challenges that inhibit the implementation and operation of their projects as well as increase their costs of doing business.
â€Some of these challenges include: Difficulty in obtaining Certificates of Occupancy (C of Os) and Governorâ€™s Consent to mortgaged property to be used as collateral.
â€This has proven to be major bottleneck in the implementation of projects as it results in the inability of the bank to disburse loans to beneficiaries.â€