AGSMEIS CBN Loan Application – See How to Apply for Free Agri-Business loan scheme – As an implementation of the budget of the Federal Government towards Youths and Agricultural Sector and a way to improve the Economy of our dearest country Nigeria, the Central Bank of Nigeria (CBN) has given guidelines on how to apply or register for the financial relief non-interest or free loan through AGSMEIS (Agri-Business, Small and Medium Enterprise Investment Scheme) and MSMEDF (Micro, Small and Medium Enterprises Development Fund). SEE HOW TO APPLY FOR CBN AGSMEIS LOAN BELOW
The guidelines on accessing CBN AGSMEIS Loan also included the Accelerated Agricultural Development Scheme (AADS) and seven other intervention schemes in its bouquet.
- 1 How the CBN AGSMEIS Loan works
- 2 How to access or Apply for CBN AGSMEIS Fund Loan
- 3 Highest Amount one can get from CBN AGSMEIS Fund Loan
- 4 Interest rate of CBN AGSMEIS Fund Loan
- 5 How long does the CBN AGSMEIS Fund Loan last?
- 6 Documentation Requirements needed to apply for CBN AGSMEIS Fund Loan
- 7 How to Apply/Register for CBN AGSMEIS Fund Loan
How the CBN AGSMEIS Loan works
- The CBN would create a Fund to be known as ‘AGSMEIS Non-Interest Fund’ that will be domiciled in a dedicated account with the apex bank.
- Each non-interest deposit Bank (full-fledged or window) was to set aside 5% of its Profit After Tax (PAT) annually as contribution to the Fund.
- Each non-interest Deposit Bank was also to transfer its contribution to the CBN not later than 10 working days after the Annual General Meeting (AGM) of the participating bank.
- Eligible activities under the Scheme are businesses across the agricultural value chain, covering production, inputs supply, storage, processing, logistics and marketing.
- Others included MSMEs in the real sector including manufacturing, ICT, mining, petrochemicals and the creative industry as well as other activities as the CBN may determine from time to time.
How to access or Apply for CBN AGSMEIS Fund Loan
The application of the Fund shall be categorized into three broad components. They are debt, equity and developmental components.
- The debt component shall constitute 50% of the fund which shall be disbursed as financings to eligible businesses through Non-Interest Deposit Money Banks.
- Asset purchased shall be registered with the National Collateral Registry (NCR).
Highest Amount one can get from CBN AGSMEIS Fund Loan
The financing limit for CBN AGSMEIS fund loan is N10,000,000 (Ten million Naira)
Interest rate of CBN AGSMEIS Fund Loan
The mark up interest per annum is 5%
How long does the CBN AGSMEIS Fund Loan last?
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 mark-up.
Documentation Requirements needed to apply for CBN AGSMEIS Fund Loan
- 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 association.
- Letter of Introduction from any of the following: Clergy, Village Head, District Head, Traditional Ruler, senior civil servant etc (for individuals, microenterprises 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).
How to Apply/Register for CBN AGSMEIS Fund Loan
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