Apply for CBN Agricultural Loan 2021 following the guideline below:
About CBN Agricultural Loan
The CBN Agricultural Loan 2021 was established by Decree No. 20 of 1977 and started operations in April 1978. Its original share capital and paid-up capital were N100 million and N85.6 million, respectively. The Federal Government holds 60% and the Central Bank of Nigeria, 40% of the shares.
To apply go to https://www.cbn.gov.ng/devfin/acgsf.asp
The capital base of the Scheme was increased to N3 billion in March 2001. The Fund guarantees credit facilities extended to farmers by banks up to 75% of the amount in default net of any security realized. The Fund is managed by the Central Bank of Nigeria, which handles the day-to-day operations of the Scheme. The Guidelines stipulate the eligible enterprises for which guarantees could be issued under the Scheme.
How to access CBN Agricultural Loan 2021
The application of the Fund shall be categorized into three broad components. They are debt, equity and developmental components.
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The debt component shall constitute 50% of the fund which shall be disbursed as financings to eligible businesses through Non-Interest Deposit Money Banks.
Asset purchased shall be registered with the National Collateral Registry (NCR).
- Financing limit: N10,000,000
- Mark-up: 5% per annum
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- Tenor: Up to 7 years (depending on the nature/gestation period of the
project) - Moratorium: Maximum of 18 months for principal and 6 months on the mark-up.
Requirements for CBN Agricultural Loan 2021
- Duly completed application form.
- Bank Verification Number (BVN).
- Certificate of Training from recognized Entrepreneurship Development Institution (EDI) or evidence of membership of organized private sector association.
- Letter of Introduction from any of the following: Clergy, Village Head, District Head, Traditional Ruler, senior civil servant etc (for individuals, microenterprises only).
- Evidence of registration of business name or certificate of incorporation and filing of annual returns (where applicable) in compliance with the provisions of the Companies and Allied Matters Act (1990).
The CBN Agricultural Loan 2021 is targeted at Nigerian youth between 18 and 35 years, seek to promote interaction among state governments, the CBN and other stakeholders in the agricultural value chain in each state.
