The Central Bank of Nigeria (CBN) is Nigeria’s apex financial authority and one of its objectives is promoting the development of MSMEs in the country. In the light of this developmental objective, the CBN initiated several intervention schemes.
The Central Bank of Nigeria (CBN) and the Bankers’ Committee, created the Agri-Business/Small and Medium Enterprise Investment Scheme AGSMEIS Loan, as an initiative to support the Federal Government’s efforts in the promotion of agricultural businesses and small/medium enterprises (SMEs) in the country, you can apply for the Loan with collateral for the AGSMEIS loan is been disbursed by NIRSAL Microfinance Bank and other Banks
While some of these schemes provide beneficiaries with loans, others release substantial funding needed for business growth. Importantly, we have conducted thorough findings on the various CBN-initiated loan opportunities targeted at businesses, particularly agricultural businesses and SMEs.
Potential or Interested Nigerians engaged in Agriculture or other SME businesses can access up to N10 Million from the AGSMEIS Loan, at a single-digit interest rate of 9% per annum. Below are the necessary requirement and steps to follow in order to access the loan from FG.
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Eligibility For AGSMEIS Loan
Businesses in the following industry are eligible for the AGSMEIS Loan:
• Agricultural sector.
• Real sector including Manufacturing, mining, and petrochemicals.
• Service sector including Information and Communication (ICT) and the Creative Industry.
• Other businesses as determined by the Central Bank of Nigeria (CBN).
Requirements
• Duly completed application form.
• Bank Verification Number (BVN).
• Certificate of Training from recognized Entrepreneurship Development Institution (EDI) or evidence of membership of organized private sector
• Letter of Introduction from any of the following, Clergy, Village Head, District Head, Traditional Ruler, senior civil servant, etc. (for individuals/ micro enterprises only).
• Evidence of registration of business name or certificate of incorporation and filing of annual returns (where applicable) in compliance with the provisions of the Companies and Allied Matters Act (1990).
• Tax Identification Number (TIN) and current Tax Clearance Certificate TCC) where applicable.
• To qualify to access this fund, you need to have been trained by an Enterprise Development Institute after which you will fill the form. They will submit your form to CBN.
• CBN will ask banks to verify your account details and then CBN proceeds to conduct its own assessment.
PROCESS
Step 1: Get Trained
It is mandatory for all applicants to attend training with a CBN certified Entrepreneurship Development Institute (EDI), they have centers spread across the country.
Step 2: Apply For Loan
The Entrepreneurship Development Institute (EDI) will guides and assists you in applying for the loan by getting all necessary documents required for the processing of the loan
Step 3: Receive Funds
The Loan fund is paid into the account of beneficiaries. While unqualified candidates are given feedback.
Step 4: Get Business Support Services
The Entrepreneurship Development Institute (EDI) will assist you to implement the business plan drawn and also provide business support services commercially.
Step 5: Make Sales
You sell your products and services to pay back loans and make profit, beneficiaries are expected to run the business by keeping proper records, monitor sales, and expenses to maximize profit and pay back the loan.
OTHER AGSMEIS? OPPORTUNITIES
1. Business Support Providers: You can register with NIRSAL and offer your support services to the beneficiaries.
2. Vendors and Suppliers: Register and supply good quality products/equipment to the beneficiaries.
Visit https://nirsalmfb.caderp.com/account/landingpage to register
Reading this article further, you’ll find out the top CBN-initiated loan and/or fund schemes for SMEs and the links to their application guidelines.
CBN Non-Interest Accelerated Agricultural Development Scheme (AADS)
Riding on the Federal Government’s mission of reducing Nigeria’s unemployment rate through agriculture, this CBN-initiated scheme aims to engage at least 370,000 Nigerian youths. While AADS will last over a three-year period, it engages Nigerian youths (between 18 and 35 years of age) for them to contribute to agricultural production in the country.
Click here to find out more about AADS
CBN Anchor Borrowers Programme (ABP) Intervention for Agriculture
ABP was developed with the objective of providing financial support for businesses and for farmers producing certain commodities. Notably, businesses (applying for ABP) are required to serve as inputs suppliers and large-scale private integrated processors.
You can find out more about ABP here
CBN Agri-Business/Small and Medium Enterprise Investment Scheme (AGSMEIS) Collateral-Free Loan
With the intent of supporting the Federal Government’s provision of financial support for small/medium enterprises and agricultural businesses, the Bankers’ Committee partnered with the Central Bank of Nigeria (CBN) in the establishment of this loan scheme. Specifically, AGSMEIS is targeted at owners of SMEs and agriculture-related businesses and such people can each obtain as much as #10 million (loan) carrying only a 9% annual interest rate.
Find out the application procedure for AGSMEIS by clicking the link here
CBN Healthcare Sector Research and Development Intervention Scheme (HSRDIS)
Being a healthcare-specific grant scheme, HSRDIS is an initiative intended to promote Nigeria’s public healthcare system. Basically, HSRDIS is targeted at research institutes, institutions and pharmaceutical companies. Therefore, the scheme provides the necessary funding for research and development concerned with the provision of diagnosis and vaccination for infectious diseases in the country.
Click the link here to learn more about HSRDIS
CBN Loan for the Creative Industry Financing Initiative (CIFI)
With the intent of promoting the idea of job creation among Nigerian youths (people considered the driving force of the country’s creative industry), the Bankers’ Committee joined hands with the CBN in the establishment of CIFI.
While CIFI is targeted at investors and entrepreneurs in the country’s IT sub-sectors, the initiative favourably boosts its beneficiaries’ access to long-term affordable financing.
To learn more about CIFI and its application process, you should click here
CBN Micro, Small and Medium Enterprises Development Fund (MSMEDF Loan)
MSMEDF is a CBN initiative established with the intent of promoting the development of micro, small and medium enterprises (MSMEs) in Nigeria. Notably, CBN’s establishment of MSMEDF was necessitated by the need to minimize the massive financial gap hampering the growth of MSMEs in Nigeria.
A sizeable number of Nigeria’s MSMEs are eligible for this loan scheme and importantly (and provided by the Revised Microfinance Policy, Regulatory and Supervisory Framework for Nigeria), such MSMEs should include any of the following:
- Artisans
- Cottage industries
- Trade and general commerce enterprises
- Service-based businesses
- (Businesses contributing to) agricultural value chain
- Businesses concerned with energy-efficient technologies and products
- Businesses/enterprises concerned with other CBN-recommended economic activities
Click here to find out the application process for MSMEDF.
Conclusion
We hope the information above has helped you find out the leading CBN-initiated loan opportunities for SMEs and how you can apply for them.
