SHOCOF: Unity Bank empowers SMEs with over N500 million
Unity Bank has continued to empower small-scale traders and shop owners across Nigeria through its initiative called Shop Collateralised Facility, SHOCOF.
The initiative, an innovative loan product, is part of the bank’s efforts to promote SMEs and strengthen support for operators in the informal sector.
So far it has disbursed over N500 million to beneficiaries, significantly improving access to financing, and further driving financial inclusion.
Originally introduced as a targeted intervention for traders in Southeast Nigeria, SHOCOF quickly gained traction and broad acceptance for its flexibility and tailored structure, prompting the Bank to expand the product nationwide.
Under the initiative, eligible customers can use their shops as collateral to access financing. The product simplifies access to credit by leveraging the commercial value and stability associated with fixed business locations, enabling traders to secure funds without the stringent collateral requirements associated with traditional lending structures.
Olusegun Oladipo, Unity Bank’s Group Head, Risk Management, noted that the Bank recognised the need for financing solutions aligned with the realities of informal sector businesses.
“SHOCOF was created to address a critical gap within the small business ecosystem by providing access to credit through a structure that traders can satisfactorily meet without much ado.”
“By recognising the value and stability embedded in their businesses, we have been able to support traders with the capital required to sustain and grow their operations,” he added.
“What started as a targeted intervention in the Southeast, which quickly gained momentum because the product directly addressed the realities of everyday traders,” says Adenike Abimbola, Divisional Head, SME & Retail Banking, Unity Bank.
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