How to get easy government loans for your business in 2020
Did you know you can access loans for your business, without collateral? Well, you can! Not only that, youll also have flexible repayment plans with a single digit interest rate, irrespective of the type of business and the amount you would need to boost your business.
By Ujunwa Onuegbu
The Nigerian government in a bid to support and promote entrepreneurship, has at various times put in place loan schemes with the aim to encourage business growth, economic development and employment generation. However, due to lack of information, a lot of business entities are ignorant of these loan provisions. Some are of the opinion that it is not possible to access these loans; others say the paperwork is too cumbersome, or the requirements are a tall order.
But, in the course of researching this post, yours truly realized that applying for these loans is super easy! If you have a viable business plan, and follow due process, be assured you’ll get the loan.
Therefore, if you believe that capital is what is keeping your business from taking off, here is a list of government loan schemes available to Agric-businesses, Micro, Small, and Medium Enterprises.
This post series will include information on Eligibility, Procedure, and Requirements.
- The Agric-Business/Small and Medium Enterprises Investment
- Micro, Small and Medium Enterprises Development Fund (MSMEDF)
- FGN SPECIAL INTERVENTION FUND FOR MSME
- Agric. Credit Guarantee Scheme Fund (ACGSF)
- Agricultural Credit Support Scheme (ACSS)
- Commercial Agriculture Credit Scheme (CACS)
- AGSMEIS LOAN SCHEM
The Agric-Business/Small and Medium Enterprises Investment Scheme (AGSMEIS)is a loan package initiated by the Bankers Committee to promote and support participation in the agricultural sector and other related businesses. With this loan package you can access up to N10m at nine percent interest, repayable in seven years. Note that it was initially pegged at five percent interest rate. But, with the inclusion of NISRAL, charged with the responsibility of disbursing the fund, it was increased to nine percent .
- Businesses eligible for the loan include:
- Creative & Art industries
- Fashion, Beauty
- Apparel & Textile
- Arts & Entertainment
- Industrial & Manufacturing
- Agriculture & Allied Processing
- Information & Communication Technology
- Media & Publishing
- Catering & Event Management
Before you can apply for this loan, you must be trained by a CBN-
CERTIFIED ENTREPRENEURSHIP DEVELOPMENT INSTITUTE (EDI ). They
help guide you through the loan application process and make
sure that all your documents are complete. The documents
- Registered business with CAC
- Evidence of tax payment
- Letter of introduction
- Letter of Guaranty
- Certification by an EDI
- Valid ID card
HOW TO APPLY
The loan application process is completed in six easy steps.
Step 1: Get Trained
Attend a compulsory training with a CBN certified Entrepreneurship Development Center (EDC).
Step 2: Apply For Loan
The Entrepreneurship Development Institute (EDI) guides and assists you in getting all necessary documents required to secure the loan
Step 3: Receive Funds
Loans are paid into the account of beneficiaries. Unqualified candidates are given feedback.
Step 4: Get Business Support Services
The Entrepreneurship Development Institute assists you to implement business plan and provide business support services commercially.
Step 5: Make Sales
Sell products and services to pay back loan and make profit.
Step 6: Repay Loan
Run your business, keep proper records, monitor sales and expenses to maximize profit and pay back the loan.
The rest of the list of such available loans will be discussed in subsequent posts. Subscribe to receive notifications of new posts.