CBN loan is a Micro, Small and Medium Enterprises Development Fund (MSMEDF).
How To Apply For CBN Loan
Prospective CBN loan borrowers should contact their preferred Participating Financial Institutions (PFIs) and apply for the Fund.
Categories of CBN Loan
There are two categories of CBN loan
- Micro entrepreneurs
- Small and Medium Enterprises (SMEs)
Micro entrepreneurs are for those seeking less than Five Million Naira (N5,000,000). They should approach any four financial institutions highlighted below:
- Microfinance Banks
- NGOs and Microfinance Institutions
- Financial Cooperatives
- Finance Companies
Small and Medium Enterprises (SMEs) is for borrowers between Five Million Naira (N500,000) to Fifty Million Naira (N50,000,000). They are to approach any of the financial institutions highlighted below:
- Deposit Money Banks (DMBs)
- Bank of Industry
- Bank of Agriculture
CBN Loan Participating Financial Institution (PFI)
The participating financial institutions are as follow:
Micro entrepreneurs borrowing less than Five Million Naira (N5,000,00) should visit any of the participating microfinance banks, NGOs and Microfinance Institutions, Financial Cooperatives, and Finance Companies.
Small and Medium Enterprises (SMEs) anticipate borrowing between 5,000,000 to 50,000,000 Deposit Money Banks, Development Finance Institutions, Bank of Agriculture and Bank of Industry.
Activities Financed Under CBN Loan
You have to fall into one of these productive activities to be able to access the CBN Loan:
- Providing Services
- Trade and general commerce
- Agricultural value chain activities
- Manufacturing & Cottage Industries
- Energy efficient products and technologies or renewable energy
- Any additional income-generating ventures that the CBN may see necessary.
For SME loans, prospective borrowers must furnish all required papers, including collateral.
Participating Financial Institutions will review loan applications, approve them, and transmit borrowers’ loan requests to the CBN for funding.
Micro, Small and Medium Enterprises Development Fund (MSMEDF) will only make financing available to borrowers through Participating Financial Institutions (PFIs).
Following the disbursement of funds by MSMEDF to the PFI, the PFIs will credit the accounts of benefiting borrowers within 5 working days.
Regardless of the type of qualified activity financed, loans will be issued at a rate of 9.0 percent per year (all charges included).
Borrowers are responsible for repaying any loans on time, including any accrued interest to the PFI.
Finally, all fully repaid loans transferred to the MSMEDF/CBN by the PFIs would be recycled.