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Do you know that President Muhammadu Buhari is working on plans to cushion the effect of the deadly COVID-19 on Nigerians businesses and individuals? In this post, we’ll show what you need yo access CBN Coronavirus Intervention Loan.
World Bank, the International Monetary Fund (IMF), countries across the World are all taking economic measures to mitigate the effects of COVI-19.
As such, the Central Bank of Nigeria (CBN) has announced measures aimed at reducing effect has budgeted the sum of N50 billion intervention funds to help cushion the economic effects of the pandemic on individuals and small businesses.
Aim of CBN Coronavirus Intervention Loan
The N50 billion Targeted Credit Facility (TCF) stimulus package is disbursed through the NIRSAL Microfinance Bank (NMFB) and if you are interested in accessing the loan, you can approach NIRSAL Microfinance Bank or the CBN branch nearest to you.
A statement by the Director of Corporate Communications of CBN, Isaac Okorafor stated that the apex bank is charging no processing fee before accessing its loan.
Here are the guidelines, procedures and conditions that must be followed or/and met before COVID-19 special Intervention loan can be accessed successfully
Who can Apply
- households, and
- enterprises that have verifiable evidence of livelihood and evidence of business activities adversely impacted by the deadly virus.
The CBN in the guidelines had also listed sectors eligible for the credit facility to include
- agric value chain,
- airline service providers,
- manufacturing/value addition,
- trading as well as any other
- income-generating activities as may be prescribed by the CBN.
How much can you Access?
A maximum facility of up to N25 million for MSMEs while households can access up to N3 million based on the activity, cash flow, and industry/segment size of a beneficiary.
4Minimum Eligibility Benchmark For SMEs
Working capital shall be a maximum of 25 per cent of the average of the previous three years’ annual turnover; where the enterprise is not up to three years in operation, 25 per cent of the previous year’s turnover will suffice.
The rate under the intervention shall be five per cent per annum all-inclusive up to 28th February 2021 and thereafter, the interest on the facility shall revert to nine per cent as from 1st March 2021.
Collateral for the facility would include one or more of the following:
- Moveable asset(s) duly registered on the National Collateral Registry (NCR)
- A simple deposit of title documents, in the perfectible state
- Deed of Debenture (for stocks), inthe perfectible state, irrevocable domiciliation of proceeds
- two acceptable guarantors
- personal guarantee of the promoter of the business
- Life insurance of the borrower, with NMFB, noted as the first loss payee and comprehensive insurance over the asset.
Kindly approach the nearest CBN branch for further clarifications and if you observed abnormalities while processing your loan it should be reported to the Consumer Protection Department of the CBN.
The CBN also urged members of the public to be wary of fraudsters who might want to explore the system. Application, according to the CBN is free.