DETAILED GUIDE ON HOW TO ACCESS CBN AGSMEIS LOAN WITHOUT COLLATERAL

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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.

What is Agric Small and Medium Enterprise Scheme (AGSMEIS)?

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.

MSMEs in the following sectors are eligible:

  • Agricultural businesses,
  • Education,
  • Health,
  • Services (Hospitality, Restaurants, Catering, Services, etc),
  • ICT,
  • Manufacturing/Production,
  • Mining,
  • Creative Industry (Fashion, Design, Crafts, Entertainment, etc),
  • 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

CBN AGSMEIS Loan

CBN AGSMEIS Loan Conditions

Now to access AGSMEIS loan, there are some conditions that must be met.

  1. Interested applicant must have been trained by an Entrepreneur Development Institute (EDI)
  2. Interested applicant will apply for loan via an EDI
  3. The applications will then be sent to CBN for processing
  4. Applicants will be called for an interview regarding his/her business.
  5. Those qualified will be contacted and given the loan.
  6. 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 Loan Approval of Application and Disbursement of Funds

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.

  1. Registered business with CAC
  2. Evidence of tax payments
  3. BVN
  4. Letter of Introduction
  5. Letter of Guaranty
  6. Certification by an EDI
  7. Passport photo of you and guarantor
  8. Valid ID card

Who Can Write Letter of Introduction for CBN AGSMEIS Loan?

  1. Your Pastor
  2. Chief Imam
  3. LGA Chairman
  4. CDA Chairman
  5. Village Head
  6. Senior Civil Servants Level 14 above
  7. MD of Blue Chip Companies
  8. Your friend or spouse can write the guaranty letter.

Important 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

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.

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.