One of the bedrock of good economy is SME go out to America or Europe you will find out that there are more small business compare to big corporation, this is why every country try as much as possible to help their SME and thanks to God out government in Nigeria is turning a new leaf toward small business in Nigeria, there are now myriad of federal government loan available through many agency such as CBN, BOA, BOI and many more.
Some of this loan are interest free and some you will have to pay back with interest.
Because of the dubious act that permeate our society federal government loan comes with a lot of scrutiny , they need to know your location before they can give you loan and at that if you default they won’t hesitate to cart your goods away, don’t forget there are still a lot of business that need loan
Agency that handle federal government loan in Nigeria
You can’t just go to abuja and request for a loan lol you won’t even be able to enter, there are agency you need to meet according to the type of loan you want to take, this agencies are
Bank of industry
Bank of industry has helped finance a lot of business, one of this ompany is innoson a copamy that build vehicle in Nigeria, when the company stated most of the equioemt they use was bought by BOI and give out to Innoson on loan.
BOI deal with established company that have a good buisnes plan. Their loan is long term and they can loan buisnes uoto #100,000 million naira.
Bank of agriculture
This focus on business in agriculture industry, agric business such as crop farming, livestock farming, processing and marketing, so far they have finance more than 1000 agric business.
Central bank of Nigeria
This is the power house of Nigeria when fincae is concern, they have many scheme they use in given loan to business, their loan is in Million and they also give loan to bank in Nigeria.
Small and medium enterprises agency of Nigeria (SMEDAN)
This agency is task with helping small bunses in Nigeria they provide loan, training for SME and also monitor their growth, their loan amount is small relative to small business.
Nigeria Export Import Bank (NEXIM)
This agency cater for business that deal with export and import in Nigeria. If you have a business in this industry you can contact them, they give out loan in millions but your business must be an establish one.
Development Bank of Nigeria (DBN)
This is also focus on SME, they provide loan as well as training that wil help entrepreneurs develop their business.
Federal government loan in Nigeria: get loan for small business
AGSMEIS Loan
This loan is made possible by the partnership of federal governmemt and CBN, the amount of loan they give out is up to 10 million naira with interest rate of 9%. It is targeted at established small business in Nigeria
To apply head over to Nirsal microfinance loan and select AGSMEIS laon.
It is under CBN loan
Anchor Borrowers Programme (ABP)
Anchor borrowers is targeted at small farmer. If you are farmer living in Nigeria this is the best loan for you but you must set up a group because the loan is given in group.
It is under cbn
MSMEDF Loan
This is another business lo an from the federal government but this time artisan, self employed other neglected small business is included as it is for micro small and medium enterprises.
It is under SMEDAN
Accelerated Agricultural Development Scheme
This loan is for farmer who are above the age of 18, it is one of the scheme of goverment to lure youth into agriculture. If you have passion for farming it this is best loan for you.
GEEP (Governtmet Enterprise and Empowerment Program)
Geep focus on small buisess in Nigeria in fact it focus on petty treder who engage in trading. Some of the loan under this GEEP is tradermoni and marketmoni introduced to help market women in Nigeria.
How to apply for federal government loan in Nigeria
Gettingt loan from federal governemt can be herculean task but not impossible, before you can access loan there are some documents you need to provide and they are
- Your business cash flow and income statement
- Company profile
- Application form
- CAC certificate
- Physical Adreess
- Audited financial account
- Government issue ID card
Before applying try as much as possible to register with appropriate agency such as CAC and NAFDAC.
The next step is to head over to the agency’s website and contact them or go to their office
How lond does it take to receive fund from federal government
It takes time before your loan Will be approved though it depends on the agency that is handling that loan. Most of time they will need cross check your busines plan by given it out to professional to read which will tell them to approve or not.
How much can I borrow from federal government in Nigeria
For small busines you can access up to 10 million naira and for large corporation what you can accesa is way more than this.
Does federal government loan require collaeral
Yes, most of the loan require collateral except for loan targeted at micro business such as trading, artisan and most of this loan is under GEEP program.
If the loan you need is above 1 Million naira you will surely need a collateral.
Conclusion
As stated above Federal government loan is hard to get but not impossible therefore it will require patient.
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