No Interest Loan Application
The Targeted Credit Facility (TCF) was established by the Central Bank of Nigeria (CBN) to assist households and Micro, Small and Medium Enterprises (MSMEs) that were impacted by the COVID-19 pandemic. The CBN has distributed a total of N159.21 billion to 330,128 female recipients as part of the TCF.
At the event titled “Gender Equality Today for a Sustainable Tomorrow” that took place in Abuja, the Governor of the apex bank, Godwin Emefiele, made this announcement.
Micro, Small and Medium Enterprises Development Fund (MSMEDF)
According to him, in addition to issuing gender-mandated regulations, the bank has supported women through other intervention funds such as AGSMEIS, MSMEDF, and other schemes. This has paved the way for gender diversity and inclusiveness at the top management levels of the banks.
This is what the CBN reported as regard the loan application:
Under Emefiele’s watch, the apex bank had shown its commitment to diversity and inclusiveness by developing and putting into action a wide variety of initiatives, programs, and interventions. These had the goals of fostering entrepreneurial spirit, lowering poverty rates, increasing employment opportunities, and broadening access to financial services for women. Emefiele made this observation.
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He said, “Females have benefitted hugely from the bank’s intervention programmes, such as the Agribusiness Small and Medium Enterprise Investment Scheme (AGSMEIS) and the COVID-19 TCF.
“Specifically, out of N134.67 billion disbursed to 37,273 AGSMEIS beneficiaries, as of January 2022, 33% (N44.1 billion) went to 12,511 female beneficiaries. Similarly, out of N349.51 billion disbursed to 712,442 total beneficiaries under the TCF, 45% which was N159.21 billion went to 330,128 female beneficiaries.
“The MSME Development Fund (MSMEDF) was designed to allocate at least 60% of the fund to women and women-owned enterprises of which 60.3% of the 229,579 beneficiaries are women. Furthermore, out of the 211,306 financial statements currently registered in the collateral registry, 92,091, representing 43.6% were female borrowers.”
Frequently Asked Questions on MSME Loan Application
- How Can I (Or My Company) Access The Loan?
Prospective borrowers should approach Participating Financial Institutions (PFIs) of their choice and apply for the Fund.
- What categories of entrepreneurs can apply for the Loan?
(a) Micro entrepreneurs (i. e. borrowers seeking loans of less than N500,000) are to approach any of the four institutions:
* Microfinance Banks * NGO/Microfinance Institutions
* Financial Cooperatives * Finance Companies
(b) Small and Medium Enterprises (SMEs) (i.e. prospective borrowers seeking between N500, 000 and N50million loan) are to approach any of these institutions:
- Deposit Money Banks
- Bank of Industry (BOI)
- Bank of Agriculture)
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- Who are the Participating Financial Institutions?
The PFIs under the Fund are as follows:
Micro loan borrowers (N500,000 to N5,000,000) would approach:
- Microfinance Banks
- NGO-Microfinance Institutions
- Finance Companies
- Financial Cooperatives
SME loan borrowers (N5,000,000 to N50,000,000 loan) would approach:
- Deposit Money Banks and Development Finance Institutions (Bank of Agric and Bank of Industry)
- What are the activities that can be financed under the loan?
- Agricultural value chain activities,
- Manufacturing & Cottage Industries,
- Trade and general commerce,
- Renewable energy or energy efficient products and technologies, and
- Any other income generating projects as may be prescribed by the CBN.
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Further Information MSME Loan Application:
- Prospective borrowers shall provide the requisite documents including collateral for SME loans;
- PFIs will appraise loan applications, approve and forward loan requests of borrowers to the CBN for the release of funds;
- MSMEDF will only release funds to borrowers through the PFIs;
- The account of benefitting borrower’s shall be credited by the PFIs within 5 working days upon the release of Funds by MSMEDF to the PFI;
- Loans shall be granted at an interest rate of 9.0% per annum (all charges inclusive) irrespective of the type of eligible activity financed;
- Borrowers shall be expected to payback all loans as and when due inclusive of any accrued interest to the PFI; and
- The MSMEDF/CBN will recycle all fully repaid loans transferred to it by the PFIs.
Danny Kasa Wish You Good Luck in Your Loan Application!!!
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