Osun Economy: Over 20,000 benefitted from Osun microcredit loans in 2016

The Osun State Government on Wednesday disclosed that more than 1,366 groups of averagely 15 members each have benefited from the N3,247,402 billion soft loans made available under its economic empowerment programme.

In a report obtained from the state Ministry of Industry, Commerce, Cooperatives and Empowerments, through the Governor’s Office Bureau of Communications and Strategy, the Osun government said the number represents groups of people that benefitted from the micro credit for the year 2016.

The Bureau, in a statement by its Director, Mr. Semiu Okanlawon, said the loans were paid directly to individuals, who belonged to registered associations and/or cooperative societies to ensure credibility as well as facilitate timely repayment.

The micro-credit scheme is said to be a no-interest loan scheme made available for the development of small and medium scale businesses in the state.

The statement said the loan was targeted at micro-enterprises such as traders, artisans, market men and women and entrepreneurs.

The statement noted that 1,366 groups, with average of 15 individuals in a group totaling about 20,490 people had benefited from the loans altogether.

It added that more people were expected to benefit this year as government intended to expand and extend the micro-credit facilities to more businesses.

The statement said: “This government is poised to make sure that its small and medium scale businesses are developed roundly for the economic growth of the state.

“This was while last year alone, 1,366 groups benefitted from the interest-free micro credit of the government, which is aimed at empowering small and budding business enterprises.

“For the ease of doing business, government has made the loan interest-free. This will help the repayment of only the principal alone.

“Government has thus taken up the burden of paying the interest on the loan.”

The statement advised that loans be judiciously utilised by the beneficiaries.

The Osun State Government also promised to continue the financial assistance as more beneficiaries would be targeted in the new year as well.