General Operational Framework of Micro Credit Loan Scheme in Nigeria

1. Overview
 A micro credit loan is described as a facility granted to an individual or a group of borrowers often described as operators of micro-enterprises, such as artisans, traders, technicians, peasant farmers, fishermen, women, senior citizens and non-salaried workers in the formal and informal sectors, whose principal source of income is derived from business activities involving the production or sale of goods and services.
 The loan is typically limited to N500,000 per individual/enterprise with a maximum repayment period of 180 days (6 months) and is usually granted with little or no collateral security, but considered on the basis of the applicant’s character and the combined cash flow of the business and household.
 Micro credit loans may require joint and several guarantees of one or more persons and further strengthened by the concept of ‘Peer Pressure’ in the timely collection......

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Title: Micro Finance
Approximate Word Count: 431
Approximate Pages: 2 (250 words per double-spaced page)

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