Hindi Livinus, Yola
Six hundred loan applicants have demanded the refund of their deposits from Royal Life Microfinance Bank, Abuja, following the alleged failure of the bank to grant the promised loan facility.
The applicants had applied for a soft loan from Royal Life Microfinance Bank through Hotty and Takari Multi-purpose Cooperative Society based in Mubi, Adamawa State, but they were not given the loan facility despite fulfilling the condition.
A retired director in charge of General Service and Administration in Mubi Local Government, Alhaji Garba Kwaya, said each applicant paid N10,000 as part of the conditions for securing the loan which ranged between N950,000 and N5m.
Three years after paying the deposit, Kwaya said the financial institution had failed to provide the loan.
“My worry is that I guaranteed 30 persons for the loan, there is pressure on me from the applicants for the refund of their money.
“The beneficiaries were convinced that the loans would be granted and each of them paid N10,000 as part of the conditions for securing the loan.
“Now, it has been three years and the loan has yet to materialise. Whenever I call officials of Royal Life Microfinance Bank, Abuja on the issue, they will tell me ‘we have submitted your forms to the Central Bank of Nigeria and approval was given for the disbursement of the loan,’ but up till now we have yet to see anything,” Kwaya explained.
An official of Hotty and Takari Multi-purpose Cooperative Society, Mallam Inuwa Mahmud, admitted that they received 600 loan applications, adding that they were working to get the refund from Royal Life Microfinance Bank.
All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express written permission from PUNCH.