CBN loan worth up to ₦2billion Naira
The Central Bank of Nigeria (CBN) is at the forefront of Nigeria’s financial sector, ensuring economic stability and fostering growth through various intervention funds. These loan schemes are designed to support small and medium-sized enterprises (SMEs) and other key industries, providing them with the financial resources needed to thrive. This post explores the different loan programs offered by the CBN, highlighting how businesses can benefit from them.
Agri-Business Small and Medium Enterprises Investment Scheme (AGSMEIS)
The AGSMEIS is a government-backed loan program administered by the CBN, aimed at supporting SMEs across different sectors. With an interest rate of 5% and a repayment period of up to seven years, this scheme provides businesses with the capital they need to expand and create jobs. The program also offers a moratorium of up to 18 months on the principal amount, giving businesses the flexibility to grow without immediate financial pressure.
Anchor Borrower’s Programme (ABP)
The Anchor Borrower’s Programme is an innovative loan scheme that provides financial support to farmers without requiring collateral. The program offers loans of up to ₦2 billion at a 9% interest rate, with a repayment period of 24 months. In addition to financial support, the ABP also provides farmers with essential inputs such as fertilizer and seeds, helping to increase agricultural productivity and ensure food security.
Commercial Agriculture Credit Scheme (CACS)
The CACS is a ₦200 billion loan facility designed to accelerate the development of Nigeria’s agricultural sector. With a 9.9% interest rate and a repayment period of up to 60 months, this scheme supports businesses involved in crop cultivation, livestock farming, and fisheries. The CACS aims to create jobs, improve food security, and enhance the overall productivity of the agricultural sector.
Creative Industry Financing Initiative
The Creative Industry Financing Initiative is a specialized loan program that provides financial support to entrepreneurs and SMEs in the creative sectors. This initiative offers loans of up to ₦500 million at a 9% interest rate, with a maximum repayment period of 10 years. The program is designed to help creative businesses overcome the challenges of securing financing and to promote growth in the fashion, ICT, film, and music industries.
Healthcare Sector Credit Support Scheme
In response to the healthcare needs of the nation, the CBN has introduced a ₦100 billion intervention fund to support businesses in this field. This scheme provides loans to pharmaceutical companies, healthcare providers, and other related businesses, with a maximum tenor of 10 years and a 9.9% interest rate. The Healthcare Sector Credit Support Scheme aims to expand the capacity of the healthcare sector to meet the growing needs of the Nigerian population.
Micro, Small, Medium Enterprises Development Fund (MSMEDF)
The MSMEDF is a ₦220 billion loan facility designed to support SMEs, with a special focus on businesses owned by women and startups. This fund offers a low-interest rate and a repayment period of up to three years. Eligible businesses include those in agriculture, education, healthcare, manufacturing, and other sectors identified by the CBN.
Non-Oil Export Stimulation Facility (NESF)
The NESF is a loan scheme aimed at promoting the growth of Nigeria’s non-oil export sector. This facility provides loans of up to ₦5 billion at a 9% interest rate, with a maximum repayment period of 10 years. The NESF supports businesses involved in the production, transportation, and export of goods, helping to diversify Nigeria’s revenue base and reduce reliance on oil exports.
Paddy Aggregation Scheme (PAS)
The Paddy Aggregation Scheme is a short-term loan facility designed to support rice millers in purchasing paddy for processing. This scheme offers loans of up to ₦2 billion at a 9% interest rate, with a repayment period of 12 months. The PAS ensures that rice millers have a steady supply of paddy throughout the year, enabling them to meet the demand for processed rice.
Real Sector Support Facility (RSSF)
The RSSF is a ₦300 billion fund aimed at boosting industrial output, creating jobs, and diversifying Nigeria’s economic base. This facility offers loans for asset acquisition and working capital, with a maximum tenor of 15 years and a 9% interest rate. Priority is given to businesses in the agro-business, manufacturing, and mining sectors.
Eligibility and Application Process
Businesses that engage in productive activities across various sectors are eligible to apply for these CBN intervention funds. Applicants must be registered with the Corporate Affairs Commission (CAC) and apply through participating financial institutions. The bank will assess the business’s potential before forwarding the application to the CBN for final approval.
