Sokoto State Government on Friday signed a Memorandum Of Understanding with Credit Direct Ltd, for issuance of loan to civil servants in the state within 24-hours.
The News Agency of Nigeria ( NAN) reports that under the agreement workers in the employ of the state government will get loans of between N20,000 and N950,000, depending on their grade level.
The state’s Head Of Service, Bature Shinkafi, and the Accountant-General, Aminu Umar, signed on behalf of the state government while Achioutu Abidiye, Northern Regional Head of the Lagos-based company, signed on its behalf.
Shinkafi said at the event that the loans would be advanced to the beneficiaries within 24-hours of completing the processes.
”Each beneficiary must not be having another previous loan tied to his salary, while the loan would be repaid between three months and one year. The loan attracts 3.7 per cent interest and the workers must fill and sign an undertaking form authorizing the direct deduction of the loan at the Ministry of Finance for remittance to the firm,” Shinkafi said.
The Head of Service explained that the gesture was aimed at assisting the workers to solve some pressing domestic problems such as payment of medical bills, children’s school fees, repairs of vehicles, among others.
He called on the workers to use the loans judiciously with a view to alleviating their suffering.
Abidiye, the firms official, promised to keep to all the terms of the agreement, adding that the company would employ 40 indigenes of the state.