Last Updated on April 1, 2021 by Ope Quadri
A lot of small business owners get confused when the Central Bank of Nigeria says it is supporting businesses with a loan.
Some of them are quick to ask: How can I access CBN loan? Will I have to visit CBN branch to submit a loan application?
Well, the fact is there are several categories of loans bankrolled by the apex bank. One of them is the Agric-Business Small and Medium Enterprises Investment Scheme, also known as AGSMEIS loan.
In this article, we’ll show you how to the easiest ways to access the CBN AGSMEIS loan for your business.
We’ll also highlight the application process for you to stand a better chance of being shortlisted for the loan.
First, here are the critical few things you need to know about AGSMEIS loan:
How AGSMEIS came about
AGSMEIS is a voluntary initiative of the Bankers’ Committee approved at its 2017 meeting. It was aimed at supporting the Federal Government’s efforts and policy
measures for the promotion of agricultural businesses and small and medium enterprises (SMEs) as vehicles for sustainable economic development and employment generation.
CBN could not it alone, it needs the support of commercial banks to make the drive a successful one, as such, the scheme requires all banks in Nigeria to set aside 5% of their profit after tax (PAT) annually to boost it financially.
Some of the mandates of the loan include the following:
- To develop an agricultural value chain and ensure sustainable agricultural practices.
- To generate much-needed employment opportunities in Nigeria.
- To ensure access to finance for Small and Medium Enterprises (SMEs)
- To boost the managerial capacity of Agri-Business/SMEs as pipelines of growing enterprises that can become large corporate organizations.
Why you need to apply for CBN AGSMEIS loan today
In October 2020, the CBN disclosed that it expanded beneficiaries to 14,638 applicants in a communique.
The communique also revealed that 250 SME businesses, predominantly the youths benefited from the Creative Industry Financing Initiative while it says it’s ready to contribute over N1.8 trillion of the total sum of N2.30 trillion needed for the Federal Government’s 1-year Economic Sustainability Plan (ESP), through its various financing interventions using the channels of Participating Financial Institutions (PFIs).
The good news:
SMEs, most importantly the Agric-Business Small and Medium Enterprises Investment Scheme is receiving a huge financial backing
For instance, the N3.5 trillion disbursed by the CBN in the wake of the COVID-19 pandemic as of September 22, 2020, showed that the sum of N54.66 billion was set aside for AGSMEIS loan.
If you haven’t applied, you need to take the bold steps right now.
- Interest Rate: 5% per annum
- Tenor: 7 years.
- Moratorium: Maximum of 18 months on Principal and 6 months on Interest
So, let’s take a quick look at who can apply and what documents you need to submit to qualify for the have access to up to N10, 000, 000, depending on the size of your business.
Here is the list of those who are eligible to apply for the CBN AGSMEIS loan:
- Agricultural sector
- Real sector including Manufacturing, mining, and petrochemicals.
- Service sector including Information and Communication (ICT) and the Creative Industry.
- Other businesses as determined by the Central Bank of Nigeria (CBN).
Do you own a business or want to start one that falls among the categories highlighted above? Then, the agribusiness small and medium enterprises investment is just for you.
CBN AGSMEIS Loan Application Requirements
Before submitting an application for the loan, you need to get the following documents in place:
- Duly completed application form
- Bank Verification Number (BVN)
- Tax Identification Number (TIN)
- Letter of Introduction from any of the following, Clergy, Village Head, District Head, Traditional Ruler, senior civil servant, etc. (for individuals/ micro enterprises only).
- Certificate of Training from recognized Entrepreneurship Development Institution (EDI) or evidence of membership of organized private sector
- Evidence of registration of business name (CAC certificate)
- Tax Clearance Certificate TCC) where applicable.
Follow the guide below to have access to up to N10 million AGSMEIS loan
In the course of your application for the Agric-Business Small and Medium Enterprises Investment Scheme (AGSMEIS) loan, you may have come across this disturbing message that may hinder you from proceeding with your application:
“To proceed, please read below: It seems you have not been admitted (trained) by your Training Institution. Please contact your Training Institution (EDI) to admit you on the portal.”
If you’re one of those who got this message while trying to apply for AGSMEIS loan on Nirsal Microfinance bank portal, don’t fret, here is exactly what you should do right away.
After creating an AGSMEIS account on NMFB portal, you can leave the rest for your Entrepreneurship Development Institution (EDI) to handle the rest.
If you don’t already have one, locate one of the EDIs in your geopolitical zones. They are certified by the Central Bank of Nigeria (CBN) to supervise and guide you for you to have a winning business plan and help you handle most of the submissions to the apex bank
Step 1: Look for any CBN certified EDI of your choice
Step 2: Fill out loan application form to register with them
Step 3: Get trained. The training is N10,0000. you will get a certificate of training
Step 4: Pay for a business plan (N5,000)
Your EDI will assist you to upload and submit the business plan to your AGSMEIS NIRSAL account.
Step 5: Wait for an invitation for an interview from NIRSAL.
Your EDI will groom you on some critical questions regarding the loan
AGSMEIS is a federal government intervention funding scheme through CBN which means an Interest Rate of 5% per annum and seven years tenor.
Moratorium: Maximum of 18 months on Principal and 6 months on Interest
If you haven’t applied, you can check the eligibility and document requirements on one of our publications.
Still having problem? Talk to us.
The EDI continues to support you even after the money has been disbursed by the CBN. It helps you in implementing your business plan.
Banks that disburse AGSMEIS loan
All Nigerian banks such as UBA, Zenith, GT Bank disburse AGSMEIS loan. If you meet the requirements listed above talk to you bank.
How Long Does It Take To Receive The Fund?
From application to submission to disbursement, it takes six to eight weeks.
Visit NIRSAL Micro Finance Bank to begin your application.
If you’ve applied, have you been funded? Share your experience with us.