FUNDING FOR NIGERIAN ENTREPRENEURS FROM CBN

CBN ENTREPRENEURSHIP LOAN PROGRAMS
I recently attended a seminar organised by the Ministry of Labour and Employment for Cooperative Societies and the Central Bank of Nigeria (CBN) were among those who presented lectures.

These loans are for production, processing and agriculture. Not for buying and selling. They are available in commercial banks if you know how to ask for it.

1. Agricultural Credit Guarantee Fund
   They are given at an interest rebate of 40%. This is also known as Interest Draw-back Program - IDP.

2. Micro-small and Medium Scale Enterprise Development Fund
   It currently has an envelope of N220b.
   Comes at an interest rate of 9%
   If you have an MFB, you can have access to an amount up to 50% of your share capital, after which you can u lend to your customers.
   If you have a registered business you can apply for it from your bank at get up to N500,000.

3. Commercial & Agricultural Credit Scheme (CAT)
   N200bn is currently available in the envelope of this product. It is given to banks at 2% and they lend at 7%. An individual can get up to a maximum of N2bn

4. Agro Borrowers Program

5. Agric Business Small & Medium Scale Enterprises (AGSME)
   Source of fund: Bankers Committee of Commercial Banks - contribution of 5% of their annual profit after tax (PAT).
   Loan is given at 5% interest, repayable up to 7 years.
   No collateral. Maximum of N10m can be requested. The money must be used for purchase of equipment/assets or working capital. The vendors for the assets will be paid directly by the scheme. So you will only have access to your working capital.
   First you will enroll with one of the selected EBIs (Entrepreneurship Business Institute) affiliated to the program after which you will be recommended back to CBN.
   If you want to know more about these loan programs, go to any Central Bank of Nigeria branch near to you and ask to see staff of their Development Finance Office.

You can also log onto www.cbn.gov.ng and check out for more information.

image credit :https://www.sunnewsonline.com/cbns-new-policy-to-capture-the-unbanked/