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FREE Report!!! How to Get Loan from CBN or Your Bank Now!

How CBN Loans Work

CBN issues intervention loans for various sectors such as agriculture, manufacturing, fashion, as well as other SMEs. These loans are disbursed to selected commercial banks or agencies and interested business owners are expected to apply for those loans through commercial banks and agencies. The majority of these loans have a 9% interest rate and lifespan of 3-10 years, making them more favorable than commercial bank loans.

How Banks Loan Works

Commercial banks also have loans tailored to SMEs in various sectors and while some have none at all, others have more than one initiative for SME funding and support. 

TOP CBN INTERVENTION LOANS


CREATIVE INDUSTRY FINANCING INITIATIVE (CIFI)

The Central Bank of Nigeria (CBN) in collaboration with the Bankers’ Committee as part of efforts to boost job creation in Nigeria, particularly among the youth, has developed a Creative Industry Financing Initiative (CIFI) fund.

 Eligible Businesses

  • Fashion
  • Information Technology
  • Movie Production
  • Movie Distribution
  • Music
  • Software Engineering Student Loan

Abridged Terms and Conditions

Facility Amount: 1-10 Million

Tenor: 2-10 Years

Pricing: 9% per annum

Documents Required for Disbursement

  1. Accepted Offer Letter
  2. Business Plan
  3. Board Resolution (if corporate)

MICRO, SMALL AND MEDIUM ENTERPRISES DEVELOPMENT FUND (MSMEDF)

Eligible Activities under MSMEDF

In line with the provisions of the Revised Microfinance Policy, Regulatory and Supervisory Framework for Nigeria, enterprises to be funded under the Scheme include:

a) Micro Enterprises.

b) Small and Medium Enterprises (SMEs)

Eligible activities under the Fund include;

Microenterprises

  • Agricultural value chain activities
  • Cottage Industries
  • Artisans
  • Services
  • Renewable energy/energy efficient product and technologies
  • Trade and general commerce

Other economic activities as may be prescribed by the CBN.

Documents Required for Disbursement

  1. Accepted Offer Letter
  2. Business Plan
  3. Board Resolution (if corporate)

COMMERCIAL AGRICULTURE CREDIT SCHEME (CACS)

Features

The maximum obligor limit is N2 billion for medium and large scale private sector enterprises while there are no limits for state governments.

Benefits

Single digit interest rate (9% all-in, max).

This fund is available till 2025.

Who Can Apply

  • Medium or Large scale commercial farms involved in the cultivation of crops, rearing of livestock, fisheries, etc.
  • Limited Liability Companies involved in agricultural production, storage, processing, marketing, and enterprise development.

Required Documents

  1. Formal application for a credit facility.
  2. Certificate of Incorporation (If Limited Liability Companies)
  3. Memorandum and Article of Association (If Limited Liability Companies)
  4. Board Resolution to Borrow (If Limited Liability Companies)
  5. Feasibility Study/Business Plan.

BANK OF INDUSTRY LOANS

FGN SPECIAL INTERVENTION FUND FOR MSMEs (National Enterprise Development Program)

This is a Federal Government of Nigeria initiative to provide subsidized loans to Micro, Small and Medium Enterprises (MSME) at a single digit (9% per annum) all-inclusive interest rate. The fund also caters to applications received from SMEDAN under the National Enterprise Development program (NEDEP) Scheme.

FASHION AND BEAUTY

Target market     

The fund will be accessed by Limited Liability Companies, Enterprises and Cooperatives (Clusters) in the following segments of the fashion & beauty value chains:

  • Adire (Tie & Dye) & Aso-Oke
  • Clothing (Design and production)
  • Fashion/Beauty Training Institutes
  • Leatherworks
  • Distribution (Local label retailing)
  • Beauty salons (Hair, skin, face/make-up, feminine cleaning etc.) 

Single obligor limit          

Both Term Loan & Working Capital should not exceed the upper limits of the following categories:

Micro Enterprises                         N10.0 million maximum

Small Enterprises                          N50.0 million maximum

Medium Enterprises                    N200.0 million maximum

Purpose        

To be disbursed towards the acquisition of equipment and provision of working capital.

FOOD AND AGRO COMMODITY PROCESSING

Target market/ criteria  

The Fund will be accessed by Limited Liability Companies, Enterprises, Cooperative societies and Associations engaged in the food and agro commodity processing value chain for the local or export market. This will include aggregators, processors, packaging and distributors/retailers.

Single obligor limit          

Both Term Loan & Working Capital should not exceed the upper limits of the following categories:

Cooperatives/Enterprises          N10.0 million maximum

Limited Liability Company      N200.0 million maximum

Pricing         

Interest Rate:  9% per annum
Fees:               1% Processing Fee
Term Loan:                  3 – 5 years

If your business falls into any of the listed categories above, congratulations are in order; you’re one step closer to getting your first CBN loan.

COMMERCIAL BANK LOANS

Right now, with these CBN directives, all Commercial banks are open to any SME loan as long as it fits into their requirements. They might not openly invite SMEs for loans but when you make the right connections with the right people and you go there with a unique business idea and an outstanding Business plan, I can promise you 100% you will get a loan from any of your preferred banks.

On Page 3, You will Find out The Preresequites and Process of Applying for a loan and How to Apply. Click page 3 to Read on.