Solved: FAQs On How To Apply And Get Accepted Into The AGSMEIS


The Central Bank Of Nigeria CBN is issuing loans to small and medium enterprises under the Agric, Small and Medium Enterprises Investment Scheme AGSMEIS.

Refer to our previous blog post about CBN AGSMEIS loan for detailed information on what the CBN AGSMEIS is all about and the steps you can take to apply for the loan.

However, many of our ever curious readers have been asking some more questions. This post wishes to address some of the queries raised frequently either by email or in the comments.

What is Agric Small and Medium Enterprise Scheme (AGSMEIS)?

Agric, Small and Medium Enterprise Scheme (AGSMEIS) is the Bankers’ Committee’s initiative to support the Federal Government’s efforts at promoting agri-business as well as small and Medium-sized Enterprises (SMEs) as a vehicle for sustainable economic development and job creation.

The AGSMEIS was approved at the Bankers’ committee 331st meeting held on the 9th of February 2017. The Scheme requires all banks in Nigeria to set aside and remit to the designated account domiciled in the Central Bank Of Nigeria (CBN) 5% of their profit after tax (PAT) annually for onward disbursement as loans.

In pursuit of this Scheme, the CBN appoints reputable and experienced organizations, referred to as Entrepreneurship Development Institutions (EDIs), to provide necessary business development support and training.

AGSMEIS loans are disbursed at single digit interest rate

What are SMEs?

For the purpose of this scheme, Small and Medium Enterprise is any enterprise that meets two of the following criteria;

  • Sales turnover not exceeding N4.5 billion
  • Total assets not exceeding N4.5 billion
  • Number of tax paying employees not more than 250

The above criteria are however subject to review by the Bankers’ Committee from time to time.

Who is eligible for funding under the AGSMEIS

The scheme targets startups, expansion of established companies and revival of ailing companies.

Micro, Small and Medium Enterprises (MSMEs) are eligible in the following industries:

  • Agriculture and Agro-allied processing
  • Art and Entertainment
  • Automobile Services
  • Fashion and DressMaking
  • Catering and Event Management
  • Courier and Delivery Services
  • Creative Industry
  • Apparels and Textile
  • I.C.T
  • Cottage Industry
  • Media
  • Publishing
  • Telecommunications
  • Hospitality
  • Health Services
  • Welding and Fabrication
  • Animal Husbandry
  • Carpentry
  • Cosmetics, Beauty and Makeup Artistry
  • POP and Tiling
  • Electrical and Electronics
  • Masonry
  • Kerbs and Electric Pole Making
  • General Management

What are the requirements for the loan?

If you are applying for the loan, be sure to have the following details handy as you will be required to present them either during application, before final approval of the CBN loan application or final disbursement of the funds.

  • Registered business (documents) with CAC
  • Evidence of tax payments. A Tax Identification Number and current Tax Clearance Certificate.
  • Get your Bank Verification Number (BVN) handy.
  • Letter of Introduction
  • Letter of Guaranty
  • Certification by an EDI. (Those applying through EDIs must have undergone an intensive training at a recognized Entrepreneurship Development Institute EDI).
  • Passport photos of you and guarantor
  • Valid ID card.

How does one apply for the AGSMEIS loan?

This is the tricky part, there are two routes to apply for the scheme. You can apply;

  1. You can apply directly through the participating banks
  2. You can also apply through a certified Entrepreneurship Development Institution


There are many fraudulent EDIs that collect outrageous fees from unsuspecting trainees with promises that they would facilitate access to the AGSMEIS loan.

How much is the interest rate?

The AGSMEIS charges as low as five (5) percent interest for the first five(5) years on overall capital.

In other words, if you are loaned one Million Naira(N1,000,000), you will be required to pay back One Million Fifty Thousand Naira(N1,050,000) over the period of the loan.

Who Is Qualified To Write A Letter of Introduction for CBN AGSMEIS Loan?

  • Your Pastor
  • Chief Imam
  • LGA Chairman
  • CDA Chairman
  • Village Head
  • Senior Civil Servants Level 14 above
  • Your friend or spouse can write the guaranty letter.

How long does the training last?

The training is intensive (accelerated) and should last not more than one week, though it varies from institute to institute.

How much fees do the training institutions charge?

This too depends on the training institution, but the fees range from N5,000 to N15,000.

AGSMEIS Loan Approval and Disbursement

  • The CBN AGSMEIS loans will be approved after all the requirements are met.
  • Applicants how apply through EDIs
  • must have been trained by the Entrepreneurship Development Institute (EDI)
  • All applications will then be forwarded to the CBN for processing
  • Those qualified will be contacted and given the loan.

What is the tenor of the loan?

Maximum loan is 10million;

Interest rate is 5% per annum;

Loan Tenor is 7 yrs and Moratorium is 18 months.

For more information, proceed to any of the Entrepreneurship Development Centers nearest to you or send an email to [email protected]

1 thought on “Solved: FAQs On How To Apply And Get Accepted Into The AGSMEIS”

  1. This is a big relief to a lot out here who are clamoring to bring about sources of income to them and others. Am keenly interested in this to bring about my entrepreneurial skills nursed over years without been actualized.

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