Are you a business owner in Nigeria and you have been finding it difficult to scale your business to the next level due to finance? The Federal government has come up with a scheme that will help finance your business.
The Agribusiness Small and Medium Enterprises Investment (AGSMEIS) is an initiative of the Federal government through the Central Bank Of Nigeria (CBN) to fund small scale businesses.
The scheme was approved on the 9th of February, 2017 and requires that all Deposit Money Banks (DMBs) are to set aside 5% of their annual profit after tax, to fund the scheme.
Objectives of AGSMEIS
The main objective of the scheme is to provide finance for small and medium enterprise while also creating employment opportunities in the process. The scheme also looks to develop agric business in Nigeria.
Sectors Eligible For The Loan
* Agricultural sector.
* Real sector including Manufacturing, mining, and petrochemicals.
* Service sector including Information and Communication (ICT) and the Creative Industry.
* Other businesses as determined by the Central Bank of Nigeria (CBN).
What You Stand To Benefit From AGSMEIS
* Loan limit: N10Million(maximum)
* Interest Rate: 5% per annum
* Tenor: 7 years.
* Moratorium: Maximum of 18 months on Principal and 6 months on Interest
Requirements To Qualify For The AGSMEIS Loan
When applying for the AGSMEIS loan, you would be given an application form to fill which you must fill correctly and return. However, you must have fulfilled the following conditions before collecting the form
* Have a Bank Verification Number (BVN).
* You must have undergone and received a Certificate of Training from recognized Entrepreneurship Development Institution (EDI) or evidence of membership of organized private sector.
* You must have an Evidence of registration of business name or certificate of incorporation and filing of annual returns (where applicable) in compliance with the provisions of the Companies and Allied Matters Act (1990).
* Have a Tax Identification Number (TIN) and current Tax Clearance Certificate TCC) where applicable.
* The Enterprise Development Institute where you have undergone a training will give you the form to fill. They will submit your form to CBN.
* CBN will ask banks to verify your account details and then CBN proceeds to conduct its own assessment.
Also note that you can access this credit facilities through some commercial banks in Nigeria. Just walk into any of the leading commercial banks and inquire if they have such scheme available under their credit scheme