CBN Collateral Free Loan Application Form 2020 | How To Apply & Requirements: If you want to access Central Bank of Nigeria (CBN) Collateral Free Loan for Business and Households then you are on the right page to get the right information.
You can apply for up to N10 million CBN AGSMEIS 5% Loan without collateral. The Agric Small and Medium Enterprise Scheme (AGSMEIS) is an initiative of the Central Bank of Nigeria.
What is Agric Small and Medium Enterprise Scheme (AGSMEIS).
With the CBN AGSMEIS Loan, you can access up to N10M at 5% per year from the Agric, Small and medium enterprise scheme (AGSMEIS), an initiative from Central Bank of Nigeria (CBN); this is without collateral.
AGSMEIS is an initiative of the Bankers’ Committee in a bid to support and complement the Federal Governments’ efforts at promoting Agri-businesses/Small and Medium Enterprises as a vehicle for sustainable economic development and employment generation.
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.
Objectives of the Agric, Small and Medium Enterprise Scheme (AGSMEIS)
The objectives of the Scheme include :
- To ensure Small and Medium Enterprises (SMEs)have access to finance
- To generate much-needed employment opportunities in Nigeria
- To develop agricultural value chain and ensure sustainable agricultural practices.
- To boost the managerial capacity of Agri-Business/SMEs as pipelines of growing enterprises that can become huge corporate organizations.
Objectives of CBN AGSMEIS Loan Form 2020.
MSMEs in the following sectors are eligible:
- Agricultural businesses,
- Services (Hospitality, Restaurants, Catering, Services, etc),
- Creative Industry (Fashion, Design, Crafts, Entertainment, etc),
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 as may be determined by the Bankers’ Committee from time to time.
CBN AGSMEIS Loan Eligibility
Now to access AGSMEIS loan, there are some conditions that must be met.
- Interested applicant must have been trained by an Entrepreneur Development Institute (EDI)
- Interested applicant will apply for 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/
Note: Maximum loan is 10million; Interest rate is 5% per annum; Tenor is 7 yrs and Moratorium is 18 months.
Requirements for CBN Collateral Free Loan Application.
The following are the Requirements necessary either during application or before final approval of the CBN loan application and final disbursement of funds to an applicant.
- Registered business with CAC
- Evidence of tax payments
- Letter of Introduction
- Letter of Guaranty
- Certification by an EDI
- Passport photo of you and guarantor
- Valid ID card
Who Can Write 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 the guaranty letter.
Notice: Please 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.
AGSMEIS Loan Interest Rate | CBN Collateral Free Loan Application
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 | CBN Collateral Free Loan Application
Step 1 : 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.
Step 2 : Apply For Loan
- The Entrepreneurship Development Institute (EDI) guides and assists you in getting all necessary documents required to secure the loan. Download the agsmeis loan application form pdf. Note that, you can get the current application form from the CBN EDC that trained you.
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.
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 licence 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, equipments, 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 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.
- 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 generate employment opportunities for Nigerians in pursuance of the provisions of the
National Economic Empowerment and Development Strategy [NEEDS] and recently vision
- 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.
List of CBN EDC Centres in Nigeria.
Below is the list of CBN EDC Centres in Nigeria and their addresses :
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)
website : edcnortheast.com.ng
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 centres in Nigeria – https://www.boi.ng/edcpartners/
Centre for Entrepreneurial Development
website : www.cedl.org
36, Murtala Mohammed International
Airport Road, Lagos.