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How to access CBN's 10 million collateral-free Loan

How to access up to 10 million naira collateral-free CBN loan for small businesses and individuals
The Central Bank of Nigeria is giving collateral-free loans of up to N10,000,000 (Ten million Naira) to small businesses in a scheme called; Agric-Business/Small and Medium Enterprises Investment Scheme (AGSMEIS).

Introduction

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 Federal Governmentss 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 N10,000,000

Interest: 5% per annum

Tenor: Up to 7 years (depending on the 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, there are some conditions that must be met:

1. Interested Applicants must undergo a one week 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 qualified will be contacted and given the loan. 

6. Fill clearly the form with all the details required, sign and get them authenticated by the EDI

Requirements either during application or before final approval/disbursement

1. Registered business with CAC (for those applying as a company)
2. Evidence of tax payments (for those applying as a company)
3. BVN
4. Letter of Introduction
6. Certification by an a CBN certified EDI
7. Passport photo of you and guarantor 
8. Valid ID card
9. A Business Plan

Those qualified to write letter of introduction for you are:

1. Your Pastor
2. Chief Imam
3. LGA Chairman
4. CDA Chairman 
5. Village Head
6. Senior Civil Servant Level (min of level 14)
7. MD of Blue Chip Companies

_Your friend or spouse can write the guarantor letter._

Important note:

70% of approved loan amount shall be paid to you through invoices for equipments and machines needed to run your business, while 30% is paid in cash as working capital.

You have to attend a compulsory one week training with a CBN certified Entrepreneurship Development Institute (EDI).

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.

Due to COVID-19, most of the EDIs are conducting the one week training online as follows:

Processing Fee: N25,000

Fee covers compulsory Training, Writing of Business Plan, other support services such as uploading of your documents to CBN portal.

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