03/09/2021
How To Access Federal Government 3m Collateral-Free Loan
The Central Bank of Nigeria is giving collateral-free loans of up to N3,000,000 (Three million Naira) to small businesses in a scheme called; Agric-Business/Small and Medium Enterprises Investment Scheme (AGSMEIS).
The Scheme supports governments policy measures for the promotion of agricultural businesses, micro, small and medium enterprises (MSMEs) as vehicles for sustainable economic development and employment generation.
Objectives of the Scheme
To improve access to affordable and sustainable finance by Agri-businesses, Micro, Small and Medium Enterprises (MSMEs).
Create employment opportunities in Nigeria.
Boost the managerial capacity of agri-businesses and MSMEs to grow the enterprises into large corporate organizations in line with the Federal Government's agenda to develop the real sector and promote inclusive growth.
Eligible sectors/businesses
1. Agriculture & Agro-allied Processing
2. Art & Entertainment
3. Automobile Services
4. Fashion and Dressmaking
5. Catering & Event Management
6. Courier & Delivery Services
7. Creative Industry
8. Apparels and Textiles
9. I.C.T
10. Cottage Industry
11. Media
12. Publishing
13. Telecommunications
14. Hospitality
15. Health Services
16. Welding and fabrication
17. Animal Husbandry
18. Cosmetics, Beauty and Makeup Artistry
19. Electrical and Electronics
20. POP and Tiling
21. Carpentry
22. Masonry
23. Kerbs and Electric Pole making
Modalities
Financing under the Scheme shall be for start-ups, business expansion or revival of ailing companies. The terms of the loans shall be as follows:
Loan amount: Up to N3,000,000
Interest: 5% per annum
Tenor: Up to 7 years (depending on nature/gestation period of the project)
Moratorium: Maximum of 18 months for principal and 6 months on interest.
Eligible applicants shall pick up and submit a completed application form to the EDIs
To access the AGMEIS loan, some conditions must be met:
1. Interested Applicants must undergo training by a CBN certified Entrepreneurship Development Institution (EDI)
2. Interested Applicants will apply for the loan through the CBN accredited EDI
3. The application will then be sent to CBN for processing.
4. Applicants will be called for an interview regarding their business.
5. Those who are qualified will be contacted and given the loan.
6. Fill the form with all the details required, sign and get them authenticated by the EDI.
Requirements either during the application or before final approval/disbursement
1. BVN
2. Certification by a CBN certified EDI
3. Details of your Guarantor
4. Valid ID card
5. A Business Plan
Important note:
Apart from training and certifying you, the EDI also guides and assists you in getting all necessary documents required to secure the loan, including a business plan.
The EDI shall collate, appraise and submit applications and business plans to CBN for Applicants.
EDI Training Fee: N20,000
Please note that the loan application itself is 100% FREE. The N20,000 fee covers compulsory Training, Writing of Business plans, other support services such as uploading your documents to the CBN portal, etc by the EDI.
If you are interested, follow the link and join the WhatsApp Group.
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