Trader Moni is an interest-free loan scheme launched by the Federal Government of Nigeria in 2018 under the Government Enterprise and Empowerment Programme (GEEP). The scheme is aimed at providing financial assistance to petty traders and artisans in Nigeria.
The loan amount ranges from ₦10,000 ($27) to ₦300,000 ($810). The loans are disbursed through a mobile app called Trader Moni, which is available on both Android and iOS devices.
To be eligible for a Trader Moni loan, applicants must:
- Be a Nigerian citizen
- Be a petty trader or artisan
- Have a valid Bank Verification Number (BVN)
- Have a mobile phone with the Trader Moni app installed
Once approved for a loan, the funds are credited to the applicant’s bank account within 24 hours. The loans are to be repaid in installments over a period of 6 months.
Trader Moni has been praised for its ability to provide financial assistance to low-income Nigerians and help them to grow their businesses. However, the scheme has also been criticized for its lack of transparency and accountability.
Here are some of the benefits of Trader Moni:
- It provides financial assistance to low-income Nigerians who would otherwise not be able to access loans.
- It helps to boost the informal sector of the economy.
- It can help to improve the standard of living of beneficiaries.
Here are some of the challenges of Trader Moni:
- The loans are not always enough to meet the needs of beneficiaries.
- The repayment terms can be difficult for some beneficiaries to meet.
- There have been allegations of corruption and mismanagement in the scheme.
Overall, Trader Moni is a well-intentioned scheme that has the potential to benefit many Nigerians. However, there are some challenges that need to be addressed in order to ensure that the scheme is successful.
How does Trader Moni work?
Trader Moni is a microcredit scheme launched by the Federal Government of Nigeria in 2018. It is designed to provide interest-free loans to petty traders and artisans in Nigeria. The loans are available in amounts ranging from ₦10,000 to ₦300,000.
To be eligible for a Trader Moni loan, you must be a Nigerian citizen and a petty trader or artisan. You must also have a registered phone number and a Bank Verification Number (BVN).
Once you are approved for a loan, you will receive the funds in your bank account within 24 hours. You will then have 30 days to repay the loan. If you repay the loan on time, you will be eligible for a larger loan in the future.
The Trader Moni scheme is important in Nigeria because it helps to provide financial support to petty traders and artisans. These are the people who make up the backbone of the Nigerian economy, and they often have difficulty accessing traditional forms of credit. The Trader Moni scheme helps to bridge this gap and gives these entrepreneurs the opportunity to grow their businesses.
Here is how Trader Moni works in more detail:
- You register for the scheme by providing your name, phone number, BVN, and occupation.
- You are then assessed for eligibility based on your income and credit history.
- If you are approved, you will receive a loan of ₦10,000 in your bank account.
- You have 30 days to repay the loan.
- If you repay the loan on time, you will be eligible for a larger loan in the future.
The Trader Moni scheme is a valuable tool for petty traders and artisans in Nigeria. It provides them with access to much-needed financial support, which can help them to grow their businesses and improve their livelihoods.
Here are some of the benefits of Trader Moni:
- It is an interest-free loan, which means that you do not have to pay any interest on the money you borrow.
- The repayment period is 30 days, which is a relatively short period of time.
- You can apply for a loan online or through your local bank.
- The application process is simple and straightforward.
If you are a petty trader or artisan in Nigeria, I encourage you to consider applying for a Trader Moni loan. It could be the financial boost you need to grow your business and improve your livelihood.
Who can get a loan from Trader Moni?
- Be a Nigerian citizen
- Be at least 18 years old
- Be a petty trader or entrepreneur
- Be a member of a recognized cooperative, guild, or association
- Have a valid Nigerian ID card
- Have a current BVN
- Have an active SIM card with a registered phone number
If you meet all of these criteria, you can apply for a Trader Moni loan through your local market cooperative union. The loan amount is ₦10,000 ($27) and is repayable over a period of six months. If you repay the first loan on time, you will be eligible for a higher loan amount of ₦15,000 ($40). You can continue to receive larger loan amounts as you repay your loans on time.
The Trader Moni loan is a great way to get started or expand your small business. The loans are interest-free and there are no collateral requirements, so you can get the money you need to grow your business without having to put up your personal assets as security.
Here are some additional details about the Trader Moni loan:
- The loan is disbursed through a mobile wallet account.
- The loan is repayable in 6 equal installments.
- There are no interest charges on the loan.
- The loan is available to petty traders and entrepreneurs who are members of a recognized cooperative, guild, or association.
If you are interested in applying for a Trader Moni loan, you can contact your local market cooperative union for more information.
How much is available from Trader Moni?
The amount available from TraderMoni ranges from N10,000 to N300,000. The amount you are eligible for will depend on your ability to repay the loan and your business needs. You can start with a N10,000 loan and, if you repay it on time, you will be eligible for a higher loan amount. The maximum loan amount of N300,000 is only available to traders who have a proven track record of repaying their loans.
Here is a breakdown of the loan amounts available from TraderMoni:
- N10,000 – This is the starting loan amount for all traders.
- N15,000 – This loan amount is available to traders who have repaid their N10,000 loan on time.
- N20,000 – This loan amount is available to traders who have repaid their N15,000 loan on time.
- N50,000 – This loan amount is available to traders who have repaid their N20,000 loan on time.
- N100,000 – This loan amount is available to traders who have repaid their N50,000 loan on time.
- N300,000 – This is the maximum loan amount available from TraderMoni. It is only available to traders who have a proven track record of repaying their loans.
The repayment period for TraderMoni loans is six months. The loans are interest-free, but there is a service charge of N100 that is deducted from each loan amount.
TraderMoni is a government-backed initiative that aims to help petty traders in Nigeria grow their businesses. The scheme has been very successful, with over 2 million beneficiaries to date. If you are a petty trader in Nigeria, you should consider applying for a TraderMoni loan. It could be the boost you need to take your business to the next level.
How long do I have to pay back Trader Moni loans?
TraderMoni loans are repayable over a period of six months. This means that you have 180 days to repay the loan in full. You can repay the loan in weekly installments of N430 or in monthly installments of N1,720.
If you repay the loan within the stipulated time period, you will be eligible for a higher loan of N15,000. You can continue to access higher loans as you repay your loans on time.
It is important to note that TraderMoni loans are interest-free. This means that you will not have to pay any interest on the loan. However, you will be required to pay a processing fee of N100.
If you are unable to repay the loan within the stipulated time period, you may be eligible for a repayment extension. However, you will need to contact the TraderMoni office to request an extension.
Do I need a bank account for Trader Moni?
You do not need a bank account for the first Trader Moni loan of N10,000. However, you will need a bank account and BVN for subsequent loans of N15,000, N20,000, and N50,000. This is because the loans are administered by the Bank of Industry, and they require a bank account to track loan repayments.
Here are the requirements for getting a Trader Moni loan:
- You must be a Nigerian citizen.
- You must be a petty trader.
- You must have a valid NIN.
- You must have a registered mobile phone number.
- You must be able to repay the loan within the stipulated time period.
If you meet the requirements, you can apply for a Trader Moni loan through your state government or through the Bank of Industry website. The loan will be disbursed to your mobile wallet, and you can then withdraw the money to use for your business.
the Trader Moni loan program offers a valuable opportunity for Nigerian citizens who are petty traders to access much-needed financial support. By meeting the specified requirements, individuals can apply for the loan through either their state government or the Bank of Industry website. Once approved, the loan amount will be disbursed to their mobile wallet, providing them with the flexibility to withdraw and utilize the funds as needed for their business. With this initiative, the Nigerian government aims to empower and uplift small-scale traders, fostering economic growth and prosperity within local communities.
Do you find Six9ja useful? Click here to give us five stars rating!