The Kaduna State Enterprise Development Agency (KASEDA) has notified several applicants of its interest-free loan scheme that their requests were unsuccessful due to existing non-performing loans.
In a message sent to affected candidates, the agency explained that applicants with outstanding debts linked to previous government-backed loan programmes were ineligible for the facility. The notice urged beneficiaries to clear such obligations before reapplying when the portal reopens.
The development is believed to be connected to loans obtained under intervention schemes such as NIRSAL, COVID-19 support funds, and other agricultural or small business financing initiatives facilitated through financial institutions.
According to the message, applicants identified with unpaid loans were categorised under non-performing loans (NPL), a status that automatically disqualifies them from accessing new credit under the KASEDA programme.
Authorities advised affected individuals to take immediate steps to verify their loan history and resolve any outstanding obligations with the Bank of Industry (BOI) or relevant institutions. This, they noted, is necessary to restore eligibility for future loan opportunities.
Financial experts say the move is part of broader efforts to ensure accountability and sustainability in government-backed lending schemes, as well as to prevent multiple borrowing without repayment.
Some applicants who received the notification expressed concern over the development, noting that many beneficiaries may not be fully aware of lingering loan records tied to past interventions.
KASEDA, which focuses on empowering small and medium-scale enterprises in Kaduna State, reiterated its commitment to supporting genuine entrepreneurs but stressed the importance of financial discipline among applicants.
The agency added that only individuals with clean credit records would be considered in subsequent rounds of the interest-free loan programme.
