Do you need an agric loan without collateral? CBN AGSMEIS is the best option you can consider.
The Agric Small and Medium Enterprise Scheme (AGSMEIS) is one of the central bank loan schemes; it 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.
This initiative is meant to boost the productivity of small and medium agricultural enterprises.
The Objectives CBN AGSMEIS
- To ensure agribusiness and other Small and Medium Enterprises (SMEs) have access to finance.
- To generate and increase employment opportunities in Nigeria
- To develop agricultural value chain and ensure sustainable agricultural practices.
- To boost the managerial capacity and potentials of Agri-Business/SMEs
CBN AGSMEIS 2020 Loan Activities
The following activities are covered by the Agric, Small and Medium Enterprise Scheme, AGSMEIS Loan:
- 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 may be determined by the Bankers’ Committee from time to time.
CBN 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.
Business Sectors Eligible For The CBN AGSMEIS
SMEs in the following sectors are eligible for the CBN AGSMEIS
- Agricultural businesses
- Services (Hospitality, Restaurants, Catering, Services, etc)
- Creative Industry (Fashion, Design, Crafts, Entertainment, etc),
Eligibility for participants of the CBN AGSMEIS Loan
- Interested applicant must have been trained by an Entrepreneur Development Institute (EDI)
- Interested applicant will apply for a 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.
Note: Maximum loan is 10million; Interest rate is 5% per annum; Tenure is 7 yrs and Moratorium is 18 months.
Requirements for 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.
- Registered business with CAC
- Evidence of tax payments of the business
- BVN of the participant
- Letter of Introduction
- Letter of Guaranty
- Certification by an EDI
- Passport photo of you and guarantor
- Valid ID card
The Letter of Introduction for CBN AGSMEIS Loan can be written by any of the following:
- Your Pastor
- Chief Imam
- LGA Chairman
- CDA Chairman
- Village Head
- Senior Civil Servants Level 14 above
- MD of Blue Chip Companies
NOTE: 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.
How To Apply For CBN AGSMEIS Loan Without Collateral
Follow the below steps to apply for the CBN AGSMEIS Loan.
#1. Get Trained
It is mandatory you attend a one-week compulsory training at a CBN certified Entrepreneurship Development Institute (EDI). Join one here.
#2. Apply For Loan
The Entrepreneurship Development Institute (EDI) guides and assists you in getting all necessary documents required to secure the loan.
#3. Receive Funds
Loans are paid into the account of beneficiaries. Unqualified candidates are given feedback.
#4. Get Business Support Services
This is a mentorship program for all beneficiaries on how to manage the business successfully for smooth loan repayment.
#5. Make Sales
Produce high-quality products or diligent services with the potential to grow the business, payback loan, and make profit.
#6. Repay Loan
Obviously the last step. It entails running your business, keeping tractable records, make sales, and monitor expenses to maximize profit and pay back the loan.
Join the Online EDI training class to earn your certificate to apply for funding