The National Institute of Credit Administration has said the availability of loans with low interest rates and flexible repayment terms will promote the profitability of Small and Medium scale Enterprises.
In the statement, the Chief Executive Officer of NICA, Prof. Chris Onalo, said a business-friendly loan would persuade other entrepreneurs to borrow to start new businesses and expand existing ones, according to The Punch.
He said, “It is difficult for businesses to break even with high-interest rate loans because the SMEs have other high operating costs, which will make repayment a challenge to them. To be better competitors and be empowered to expand their trades, businesses should have access to single-digit interest-rate loans with flexible repayment options. This is the ideal situation that will boost a business-friendly environment.”
He asked for support that would enable businesses to grow in the country because they provide means of livelihood to a large proportion of the population.
Findings shows that, majority of Nigerians were self-employed, according to National Bureau of Status data.
