The federal government is currently giving out loans to Nigerians in the business sector. They will work together with the State Governments, Honourable Ministers, NASME (Nigerian Association of Small and Medium Enterprises), Senators, and House of Representative Members, who will use the Federal Government’s selection measures to shortlist the beneficiaries from their constituents.
The loan term will be for 36 months for MSMEs and Manufacturers (Working capital) is 12 months. However, manufacturers (Asset financing) have a 60-month tenor with a six-month moratorium.
The Target Sectors for the Federal Government Loan
Written below are the businesses that are eligible to apply for the loan.
Traders
These consist of single retail marketers, corner shop owners, petty traders, and market men and women in open markets.
Food Services
These consist of food, fruit and vegetable vendors, etc.
ICT
These consist of business centre operators, battery chargers, recharge card vendors, and call centre agents.
Transportation
These include wheelbarrow pushers and independent dispatch riders.
Creatives
These include makeup artists, fashion designers, and dry cleaners.
Artisans
These include vulcanizers, shoemakers, painters, and repairers.
Eligibility Criteria for Federal Government Loan
Here are the eligibility criteria for the loan.
Loan up to 1M
Eligibility criteria
- Existing business must be in operation for one (1) year,
- Start-ups must be a registered business
- Provide CAC business registration documents.
- Company’s Bank Statement(s) for one (1) year (for existing business)/ Chief Promoter’s (Director or Business owner) Bank Statement(s) for one (1) year (for startups).
- Have required monthly turnover and other things as may be requested by the bank.
Security
- Personal Guarantee of the promoter
- Acceptance of BVN Covenant (Global Standing Instruction- GSI), and any other thing that may be required by the bank
Repayment Frequency
- Monthly equal instalment (no moratorium) for 3 years
- Manufacturers up to N1billion (Working Capital or Asset Financing)
Eligibility Criteria
- At least 6 months of business/ corporate banking relationship
- Provide CAC business registration documents
- 12 months bank statement for other bank
- Other documentation that may be required by the bank.
Security
- As may be required by the bank
Repayment term
- i) Asset Financing
- 6 Months moratorium on principal and interest, 5 years repayment period for asset financing only
- ii) Working Capital Financing
- 12 months equal instalment of principal and interest
Application Process
To apply, click on this link, and provide the required information. However, disbursement will be done by your bank if you meet the eligibility criteria. Website
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