CBN Textile Industry Loan 2020: FG approves N50billion BoI interest free loan

Spread the love

CBN Textile Industry Loan 2020: FG approves N50billion BoI interest free loan – The Central Bank of Nigeria (CBN) is working tirelessly for the benefit of every sector. Today, the Central Bank of Nigeria (CBN) approved N50billion intervention fund for the textile industry. This indicates that all that falls under the category of textiles can apply successfully using the link portal below.

The Bank of Industry (BoI) will administer the fund at 4.5 percent interest rate.

According to CBN, the funds would be used to resuscitate the ailing textile sector, restructure facilities and provide further facilities for textile firms with genuine need for intervention.

Contents

Maximum loan amount for each obligor

The maximum financial amount is N2billion for a single obligor for new facilities and N1billion for refinancing.

Closing Date for CBN Textile Industry Loan

The one-off intervention will terminate by December 31, 2025.

CBN Governor, Godwin Emefiele, had met with textile mill owners on how to revive the ailing sub-sector.

They were asked to explain the status of their BoI Cotton Textile and Garment (CTG) Loans, stating their outstanding balances, tenure, interest rate, interest payment and the assistance being sought from CBN.

Sectors that can apply or access CBN Textile Industry Loan

Activities to be covered are operations in the CTG value chain include:

Cotton ginning (lint production)
Spinning (yarn production)
Textile mills
Integrated garment factories (for military, para-military and schools and other uniformed institutions).

Note: Those allowed to participate are textile companies with an existing facility in the books of BoI under the CTG scheme, and those with existing facilities in Deposit Money Banks/Non-Interest Financial Institutions (NIFIs).

Companies not participating under the Small and Medium Enterprises/Restructuring/Refinancing Fund (RRF) qualify, while projects financed before June 2009 (inception of the BoI CTG Loan) shall not be eligible to participate.