A United States-based university lecturer, Dr. Olatunde Olusesi, has launched a zero-interest loan scheme for petty business owners.
The scheme, launched at Itoku Market in Abeokuta, on Monday, is part of the Dr. Olusesi-founded Ferefayo Empowerment Programme.
The initiator, who turned 60 on the launch date, explained that the scheme is in the memory of Alhaja Anisat Amosa Olusesi, a successful trader at Itoku Market.
The Ferefayo Empowerment Scheme is the latest in the series of social entrepreneurship initiatives of Dr. Olusesi, who founded Lorranisa 11/11 Enterprises.
The empowerment scheme comes as a micro-loan of N25,000 for petty businesses, with the repayment terms made light to lessen the burden on beneficiaries.
The scheme is structured to provide N25,000 to hundreds of beneficiaries in the first phase as starting capital or a boost fund for minimal-scale business ventures.
At the launch, Abolade Afeez, General Manager of Lorranisa 11/11 Enterprises, stated that there will be no initial deposits to secure the N25,000 loan, which also comes at zero interest rates. Processing the fund also comes free. The beneficiaries are also required to repay only N20,000 as the full repayment sum, with the remaining N5000 being a grant.
Beneficiaries, according to Afeez, include sellers of sachet water, vegetables, condiments, and fruits.
According to Afeez, 130 people will get loans in the first phase, while more funds will be made available as the number of applicants increases. Beneficiaries have up to a year to pay back the loan.
Elder Olugbade Ogunsiji, guest lecturer at the launch, advised beneficiaries against defaulting so that others can benefit, adding that they should keep repayment records of N500 weekly.
Ogunsiji said it would take only 40 weeks in a year to repay the required N20,000 out of the N25,000 loan if beneficiaries stick to the repayment schedule.
Lorranisa 11/11 Enterprises is a non-governmental, non-partisan, and non-sectarian social entrepreneurship outfit that supports unemployed and low-income earning Nigerians. It also provides mutually beneficial business opportunities to investors and has created job opportunities for transport workers in addition to providing loans to farmers and artisans.
