NIRSAL CBN Loan Application Form 2020/2021: CBN approves N75billion Grants to Nigeria 36 States + FCT – NIRSAL (Nigerian Incentive-Based Risk Sharing in Agricultural Lending is now giving out loan as approved by the Central Bank of Nigeria (CBN). CBN approves the disbursement or lending out of N75billion to Nigerian farmers in the 36 states and the Federal Capital Territory (FCT). SEE HOW TO APPLY FOR CBN NIRSAL LOAN BELOW
The Essence of Nirsal CBN Loan
The loan guarantee scheme is a public-private sector initiative set up to transform the country’s agricultural sector. It was initiated by the apex bank, the Bankers’ Committee and the Federal Ministry of Agriculture and Rural Development (FMARD), to guarantee 75 per cent loans provided by Deposit Money Banks (DPB) to farmers as part of efforts to transform the country’s agricultural sector.
How will Farmers apply/register and get the Nirsal CBN Loan
Jude Uzonwanne, the Head of NIRSAL Project Implementation Office under the Development Finance Department of the CBN, spoke on the role of NIRSAL in Abuja, told the Minister of State for the Federal Capital Territory, Oloye Akinjide, that the guarantee or loan would be issued to farmers through commercial banks and other financial institutions.
“NIRSAL would mobilize financing for Nigerian agribusiness by using credit guarantees to address the risk of default,” Mr. Uzonwanne said.
“NIRSAL is a flexible financing tool designed to change the behaviour of financial institutions.
“It covers all crops and livestock activities in Nigeria, while driving improved investment outcomes and job creation. It is also building on a legacy of previous CBN interventions in agriculture that has helped create thousands of jobs.”
Who can Apply for Nirsal CBN Loan
Mr. Uzonwanne said the programme was designed to create access to finance to farmers by integrating end-to-end agriculture value chains, such as input producers, farmers, agro dealers, agro processors and industrial manufacturers with agricultural financing value chains – loan product development, credit distribution, loan origination, managing and pricing for risk, and loan disbursement.
The integration is driven by NIRSAL’s 5 pillars, particularly the Risk Sharing Pillar and the Technical Assistance pillars, such that:
- Risk sharing Facility is allocated 45 billion
- Insurance Facility is allocated 4.5 billion
- Technical assistance facility is allocated 9 billion
- Agricultural bank rating scheme is allocated 1.5 billion
- Bank incentive mechanism is allocated 15 billion.
All these sum up to N75billion approved by CBN.
Duration of Nirsal CBN Loan
The loan duration is between 24 – 28 months.
How to apply or register for Nirsal CBN Loan for Farmers
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