How To Apply For The 2020 CBN Collateral Free Loan For Small Business! Are you are aware that the application form for the Central Bank of Nigeria loan for AGSMEIS is out. The CBN is giving the sum of N10 million to Agric-Businesses, Small and Medium Enterprises Investment Scheme (AGSMEIS) as a loan with no collateral. This page will show you the requirements and how to access the N10m CBN Collateral Free Loan at 5% yearly for small and medium businesses.
The Agric-Businesses, Small and Medium Enterprises Investment Scheme (AGSMEIS) is a voluntary initiative of the Bankers’ Committee approved at its 331st meeting held on 9th February 2017. The Scheme requires all banks in Nigeria to set aside 5% of their profit after tax (PAT) annually.
The initiative is to support the Federal Government’s efforts and policy measures for the promotion of Agricultural Businesses, Small and Medium Enterprises (SMEs) as vehicles for sustainable economic development and employment generation.
The CBN AGSMEIS Objectives Are
- To boost the managerial capacity of Agri-Business/SMEs as pipelines of growing enterprises that can become huge corporate organizations
- To create much-required employment opportunities in Nigeria.
- To develop agricultural value chain and ensure sustainable agricultural practices.
- To ensure Small and Medium Enterprises (SMEs)have access to finance.
The following small and medium enterprise schemes that are qualified for the CBN loan are; Manufacturing/Production, Mining, Health, Services (Hospitality, Restaurants, Catering, Services, etc), Agricultural businesses, Creative Industry (Fashion, Design, Crafts, Entertainment, etc), Education, ICT,
Requirements Needed For The CBN AGSMEIS Loan
- Registered Business with CAC
- Letter of Introduction
- Certification by an EDI
- Valid ID card
- Passport photo of you and guarantor
- Letter of Guaranty
- Evidence of tax payments
The Following Persons Can Writhe Letter of Introduction for CBN AGSMEIS Loan
- Your Pastor
- Chief Imam
- LGA Chairman
- CDA Chairman
- Village Head
- Senior Civil Servants Level 14 above
- MD of Blue Chip Companies
- Your friend or spouse can write a guaranty letter.
The CBN AGSMEIS Loan Activities
The activities covered by the Central Bank of Nigeria Agric, Small and Medium Enterprise Scheme, AGSMEIS Loan includes;
- Businesses across the agricultural value chain covering inputs supply, production, storage, processing, logistics and marketing. MSMEs in the real sector including manufacturing, mining, and petrochemicals.
- MSMEs in the service sector including information and communication technology (ICT) and the creative industry. Other activities may be determined by the Bankers’ Committee from time to time.
CBN AGSMEIS Loan Eligibility
Now to access the AGSMEIS loan, there are some conditions that must be met.
- Interested applicant must have been trained by an Entrepreneur Development Institute (EDI)
- The interested applicant will apply for a loan via an EDI
- The applications will then be sent to CBN for processing
- Applicants will be called for an interview regarding his/her business.
- Those qualified will be contacted and given the loan.
- Fill clearly the new form with all the details required, sign and get them authenticated by EDC – http://www.edcsouthwest.org/
It is important to note that applicants who submitted last year and was sent a link to provide further details before the last requirements came out do not need to re-submit again.
The AGSMEIS Loan Interest Rate: Five percent(5%) for the first five(5) years. If you obtain One Million Naira(N1,000,000), you will pay back One Million Fifty Thousand Naira(N1,050,000) throughout the duration of the loan.
How To Apply For CBN AGSMEIS Loan Form 2020 Without Collateral
Below are the procedures to apply for the 2020 CBN Free Loan;
Get Trained; Attend a one-week compulsory training at a CBN certified Entrepreneurship Development Institute (EDI). You can check the list of CBN EDC Centres in Nigeria.
Apply For Loan; The Entrepreneurship Development Institute (EDI) guides and assists you in getting all necessary documents required to secure the loan. Note that, you can get the current application form from the CBN EDC that trained you. Download The CBN AGSMEIS Loan
Receive Funds; Loans are paid into the account of beneficiaries. Unqualified candidates are given feedback.
Get Business Support Services; The Entrepreneurship Development Institute assists you to implement business plans and provide business support services commercially.
Make Sales; Sell products and services to pay back the loan and make profit.
Repay Loan; Run your business, keep proper records, monitor sales, and expenses to maximize profit and pay back the loan.
About National Microfinance Bank (NMFB).
The National Microfinance Bank is a leading Nigerian financial institution licensed by the Central Bank of Nigeria (CBN) in Nigeria. The Company was incorporated as a Private Limited Company in 2019 and commenced operations following the grant of a license by the Central Bank of Nigeria to operate as a National Microfinance Bank in the same year. It is Owned 50% by the Bankers Committee, 40% by NIRSAL and 10% NIPOST. So far the bank has disbursed approximately 776 million in loans to eligible SMEs under the AGSMEIS.
List of CBN Approved Entrepreneurial Development Centers (EDC) in Nigeria
The CBN EDC Centres in Nigeria provide physical structures, training materials, equipment, human resources and other facilities that would assure internationally competitive, effective and sustainable services capable of meeting the needs of MSMEs in the country. This is to encourage private entrepreneurship, self-employment, job creations, income growth, poverty eradication, and economic development.
The CBN Entrepreneurship Development Centres (CBN EDCs) which target those with at least secondary education has the following specific objectives:
- To generate employment opportunities for Nigerians in pursuance of the provisions of the National Economic Empowerment and Development Strategy [NEEDS] and recently vision 2020.
- To raise a new class of entrepreneurs/owners, who can compete globally and succeed in managing MSMEs and provide the bridge for future industrialization of the country.
- To develop skills of would-be-entrepreneurs to successfully start, expand, diversify and manage business enterprises as well as link them with financial institutions for start-up capital, especially the microfinance banks.
- To develop entrepreneurship spirit amongst Nigerians and provide insight into the tools, techniques, and framework for managing all functional areas of business enterprise, including production, marketing, personnel, and finance.
List of CBN EDC Centres in Nigeria
Below is the list of CBN EDC Centres in Nigeria and their addresses where you can access the 2020 CBN Free Loan;
CBN-EDC, Ibadan (South-West)
Address: Old SDSTC (Oyo Oodua Skill Acquisition Centre Premises),
Samonda, along Sango-UI Road,
Ibadan, Oyo State, Nigeria.
CBN-EDC, PortHarcourt (South-South)
30 Trans-Woji road, Grace plaza, by Slaughter Bridge Woji Town,
Port Harcourt, Rivers State
CBN-EDC, Maiduguri (North-East)
Address: Old Informatics Institute, Njimtillo, Kano Road,
Maiduguri, Borno State
CBN-EDC, Kano (North-West)
Address: Murtala Muhammed Library Complex,
Kano, Kano State
CBN-EDC, Makurdi (North-Central)
Off Jonah Jang Crescent,
Near Federal Secretariat,
Makurdi, Benue State.
CBN-EDC, Minna (North-Central)
Address: Minna Innovation Institute,
Behind Niger State Sharia Commission,
Justice Ndajiwo Drive,
Minna, Niger State.
CBN-EDC, Enugu (South-East)
Address: Ebenezer Villa Suite
8, Ogenyi Close, Off Cornerstone Avenue
Off Nike Lake Resort Road,
Enugu, Enugu State.
You can get more contact addresses of Entrepreneurship development centers in Nigeria – https://www.boi.ng/edcpartners
Centre for Entrepreneurial Development
36, Murtala Mohammed International
Airport Road, Lagos.