Banks stop granting loans to Ekiti workers over irregular salary

Ekiti State Governor, Ayodele Fayose

Most commercial banks operating in Ekiti have placed embargo on further granting of loans against salary to workers in the state.

Dependable bank sources revealed in Ado Ekiti on Thursday that granting of loans to workers was stopped more than two months ago.

According to a source, who pleaded not to be mentioned, the banks took the decision when it became apparent that those with old loans could no longer fulfill their monthly repayment obligations to their banks.

Further investigation revealed that some of the banks have been finding it difficult to cope with the situation, hence their decision to adopt the strategy.

Some of the affected civil servants, who did not want to be named, confirmed that their applications to banks for top-up loan were declined while fresh applications were left unattended to.

A staff of one of the first generation banks disclosed that the embargo was from their corporate headquarters, adding that it did not target Ekiti alone but affected other states with record of backlog of unpaid salaries.

According to the bank source, those categorised as financially credible to obtain loan for now are federal workers, private individuals, traders, businessmen, contractors as well as artisans with records of fidelity.