Policy on loan defaulters aimed at driving credit repayment culture
If you are a chronic debtor, you may be in for a tough period.
Starting from August 1, 2020, Nigerian Banks will be able to deduct any bank account of a loan defaulter irrespective of which bank the money is domiciled without the account owner’s permission.
This is in line with the new CBN Global Standing Instruction, GSI policy guideline which will take effect on all individual borrowing customers’ accounts in the financial industry.
Some Banks have already sent notices of this new directive to their customers.
The policy allows your Bank to recover the outstanding principal and interest upon default from any/all accounts maintained by you, across all financial institutions in Nigeria.
The execution of the GSI mandate instruction, which is mandatory for every individual borrowing customer authorises the Bank without recourse to recover the outstanding sum.
The guideline is aimed at facilitating an improved credit repayment culture, reduce non-performing loans and watch-listing consistent loan defaulters.