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CBN: How to Apply For the AGSMEIS Loan 2020/2021 without Collateral

by on January 7, 2020
 

Apply for N10 million CBN AGSMEIS 5% Loan Today. The Agric-Businesses/Small and Medium Enterprise Investment Scheme (AGSMEIS) is an initiative of the Central Bank of Nigeria. CBN AGSMEIS Loan 2020 application is currently ongoing.

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-Businesses/Small and Medium Enterprise Investment 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.

CBN AGSMEIS Loan Activities

The activities covered by the Central Bank of Nigeria Agric, Small and Medium Enterprise Scheme, AGSMEIS Loan include;

  • Businesses across the agricultural value chain covering inputs supply, production, storage, processing, logistics and marketing. Micro Small & Medium Enterprises (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.
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CBN AGSMEIS Loan Eligibility.

  1. information Communication Technology (ICT)
  2. Telecommunication
  3. Media & Publish
  4. Creative & Art Industries
  5. Fashion, Design
  6. Beauty
  7. Apparels & Textile
  8. Arts & Entertainment
  9. Industrial & Manufacturing
  10. Agriculture Allied Processing
  11. Automobiles
  12. Hospitality
  13. Catering & Event Management
  14. Restaurants etc.
  15. Education
  16. Health
  17. Mining.

CBN AGSMEIS Loan Conditions

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

  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 7years 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 Entrepreneurship Development Institute (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.

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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

Note: 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.

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.

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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 startup 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 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.

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)
Website: www.edcsouthwest.org
Address: Old SDSTC (Oyo Oodua Skill Acquisition Centre Premises),
Samonda, along Sango-UI Road,
Ibadan, Oyo State, Nigeria.

CBN-EDC, PortHarcourt (South South)
Website: www.ssedc.org
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.

Centre for Entrepreneurial Development
website : www.cedl.org
36, Murtala Mohammed International
Airport Road, Lagos.

You can get more contact addresses of Entrepreneurship development centres in Nigeria – https://www.boi.ng/edcpartners/

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