How to apply for CBN loan? Or, how to apply for CBN Non Interest loan? The non-interest facility loan has been authorized and opened by the Central Bank of Nigeria (CBN) in collaboration with NIRSAL Micro Finance Bank. Basically, this loan is offered to SMEs, AGSMEIS, and households. Therefore, the information below will instruct you on how to apply for cbn loan and how to apply for a CBN Non-interest loan if you are interested and fit into any of these categories.
How To Apply For CBN Loan?
NON-INTEREST TARGETED CREDIT FACILITY for households and SMEs (TCF-NI)
The Non-Interest Targeted Credit Facility, or TCF for short, is a stimulus program for Nigerian households and businesses (Micro, Small, and Medium Enterprises) who were adversely impacted by the COVID-19 pandemic. In essence, this relief fund is a no-interest package designed to finance a company’s key assets until it can stand on its own. Additionally, this loan will support those households that continue to struggle to make ends meet.
TCF has a N2,500,000.00 lending cap with a 3 year term and a 6 month moratorium. The moratorium is the extension of time that the bank gives the consumer to put off making payments.
SMALL AND MEDIUM ENTERPRISE INVESTMENT SCHEME, NON-INTEREST AGRI-BUSINESS (AGSMEIS-NI)
The federal government’s funding program is known as AGSMEIS-NI, or Non-Interest Agri-Business, Small and Medium Enterprise Investment Scheme. Through CBN, the federal government provides this cash, which is aimed at advancing Nigerian agricultural enterprises. This will aid in accelerating economic growth and creating jobs for the unemployed.
Its non-interest product serves as an alternative to AGSMEIS. Basically, this product offers features like Murabaha and Ijarah and is based on the Islamic rule for financial transactions. This product was created specifically to help the company expand and pay for working capital, equipment, and raw supplies.
The funding cap for AGSMEIS-N is N10,000,000.00 with a 7-year tenor (depending on the nature of the project). As a candidate, you are entitled to an additional moratorium of six months.
CBN Non-Interest Facilities Loan Requirements
The prerequisites for the CBN COVID 19 Loan Application for SMEs are detailed below.
- A CAC registered business
How To Apply For CBN Non Interest Loan?
Following are the steps to apply for a CBN Non-Interest Loan for Households and SMEs:
- Begin by visiting the webpage for NIRSAL microfinance
- After that, click “Apply for Non-Interest Facility.” You will have two choices after tapping it. “NON-INTEREST TCF” and “NON INTEREST AGSMEIS” are these possibilities. The “NON-INTEREST TCF” tab can be selected.
- You will notice two alternatives when you select the NON-INTEREST TCF tab: household facility and SME facility. Select the choice that best suits your needs. After that, you can fully begin the registration process.
- You will be asked if this is your first application or if you are returning to an earlier one. Choose “New Applicant” if this is your first time applying.
- Continue by entering your BVN. Some of your information will be generated automatically by this. With your other information, fill in the blank fields that are required.
You ought to get a notice congratulating you on submitting a successful application if it is. You can choose the SME facility if your company is one that is registered with CAC. You only need the CAC registration details and your company’s TIN number.
HOW TO APPLY FOR CBN LOAN (FAQs)
Can I get a loan straight from the Nigerian Central Bank?
You cannot directly borrow from the CBN, sorry. Any of the Participating Financial Institutions can disburse loans (PFIs). These PFIs are required to evaluate your company’s creditworthiness and oversee any loans issued.
When will you start getting money from the Central Bank of Nigeria?
The type of application made and the amount of funding requested will determine how long the procedure takes. With other plans, the system is highly automated, and loans can be disbursed as soon as six weeks after the application. Other schemes, especially those involving more excellent money, may take longer.
How much time do I have to repay a loan from the Central Bank of Nigeria?
Loan conditions vary depending on the particular program requested. Additionally, it depends on the nature of your company and the loan’s objective. Loan lengths typically range from one to ten years. It is also possible to grant a moratorium or incubation period.
How much does a loan from the Central Bank of Nigeria cost in interest?
For loans from the CBN, interest rates are usually 9%. However, the CBN reserves the right to set a lower interest rate. AGSMEIS is one program that includes a lower interest rate as a standard.
What distinguishes a loan from the Central Bank of Nigeria from other commercial loans?
The CBN lends money to specific industries through its intervention funds that may have trouble getting credit. Additionally, many of the CBN’s products are advantageous to SMEs because they have longer repayment terms and lower interest rates, or “soft loans.”
How much money can I borrow from the Nigerian Central Bank?
The size of your company and the scheme you have applied for both significantly impact the amount you can borrow from the CBN. It is possible to offer loans as small as a few million Naira and larger loans of up to a billion Naira.
Does Nigeria’s Central Bank award grants?
Loans make up the majority of the money that the CBN has made available. The Central Bank of Nigeria does, however, occasionally award incentives to qualified enterprises. The CBN is the ideal place to contact if you need a grant.
Is there a cutoff date for loan applications to the Central Bank of Nigeria?
No, there is usually no deadline for submitting a CBN loan application. However, the initial seed money for intervention funds may or may not be replaced once used.
The Central Bank of Nigeria, does it require security?
Each of the intermediate banks the CBN uses to finance its loans typically has its collateral requirements. However, collateral generally is (though only sometimes) needed. Regardless of the bank you apply through; this is the situation. Among the acceptable collateral types are:
- Federal Government of Nigeria’s Obligations (FGN Bonds, FGN Eurobonds, FGN Treasury Bills, etc.)
- State governments’ or federal government of Nigeria’s agencies’ obligations
- Additional instruments of non-government debt
- Physical assets, such as real estate
- Guarantors from a third party (or collateral)
Conclusion – How to apply for CBN Non Interest loan
The Nigerian federal government offers households, businesses, and agricultural organizations CBN Non-Interest Loans as a kind of stimulus. In essence, these payments are intended to help pandemic-affected homes and businesses. Simply follow the directions above to find out How to apply for CBN Non Interest loan and how to apply for CBN loan in general.