A pledge to make more capital loans available for small and medium scale businesses in Lagos state has been made by Advans La Fayette Microfinance Bank.

The Chief Executive Officer, Advans, Mr. Guillaume Valence, speaking at the grand opening of the Lagos branch in Victoria Island said Advans will assist businesses through capital loans with collaterals and non-collateral.

Valence further explained that Advans would be willing to give out loan facilities on the basis of no collateral to sustain businesses.

“One of the things we will be doing differently is that you can get a loan without savings. If you look at the microfinance base, you have to own an account and save for certain months before accessing loan facilities.” Valence added

“Advans is coming into the market with a different way to handle the business. We are bringing in more efficient operations. What matters is that the working capital of people we are collaborating with is actually growing, and this is paramount” Valence said.

The Deputy Chief Executive Officer, Advans, Mr. Obinna Ukachukwu, emphasised that the loan facilities will be through selection methodology.

“In microfinance base, we are actually recapitalising. We at Advans are ahead of the capitalisation call and we will continue to meet regulator’s requirement on capitalization.

“Concerning loan default, if we look at the market, we will see that there are a lot of advantages on collateral base lending and people make decisions based on the kind of collateral they can actually get. We take loans, but we emphasise on selection methodology. We are very practical about businesses we give loans to. We select businesses that are in business and sustainable,” Ukachukwu said.

The French Ambassador to Nigeria, Mr. Jerome Pasquier, during the grand opening, applauded the microfinance bank for its financial interventions since inception.