INCENTIVES

CHAPTER THREE 3

 INCENTIVES The following incentives shall apply to PFIs that utilize approved facilities in line with the terms and conditions of the offer: PFI Category Size of facility Time taken to approve facility Bronze Repaid two loan-cycles as and when due Original Loan x 2 8 working days Silver Repaid three loan-cycles as and when due Original Loan x 3 6 working days Gold Repaid four loan-cycles as and when due Original Loan x 4 4 working days 

3.1 INFRACTIONS The following sanctions shall apply to erring DMBs/DFIs under the Fund.

 a) Diversion of funds by DMBs shall attract a penalty at the bank’s prime lending rate at the time of infraction. The CBN shall recover the fund by debiting the DMBs’/DFIs’ account. In addition, such DMBs/DFIs shall be barred from further participation under the Fund 

b)Non-rendition or false returns shall attract the penalty stipulated by BOFIA Section 60 

c) Charging interest rate higher than prescribed shall attract the penalty stipulated by BOFIA section 60 

d) Any DMB/DFI that fails to disburse the fund within 5 working days of receipt to the borrower shall be charged a penalty interest rate of MPR+300 basis points for the period the fund was not disbursed 

e) Any other breach of the guidelines as may be specified from time to time. 

f) Notwithstanding the agreement between the DMB/DFI and the project promoter, the CBN has the right to reject a request from any DMB/DFI that contravenes any section of the Guidelines.