CBN AGSMEIS Loan 2020: How To Apply Without Collateral [updated]

The Central Bank Of Nigeria CBN is issuing loans to small and medium enterprises under the Agric Small and Medium Enterprise Scheme (AGSMEIS) Loan 2020.

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

Agric, Small and Medium Enterprise Scheme AGSMEIS is the Bankers’ Committee’s initiative aimed at complementing the efforts of the Federal Government to promote agri-business as well as small and medium-sized enterprises as a vehicle for sustainable economic development and job creation.

The AGSMEIS was approved at the Bankers’ committee 331st held on the 9th of February 2017. The Scheme requires all banks in Nigeria to set aside 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 Enterprise Development Institutes (EDIs), to provide necessary business development support.

AGSMEIS loans are disbursed at a single digit interest rate.

From the AGSMEIS, you can access up to N10M at 5 percent per year– without collateral.

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Objectives of the Agric, Small and Medium Enterprise Scheme (AGSMEIS)

The Scheme’s goals include:

• To create much-needed job possibilities in Nigeria

• To improve the agricultural value chain and guarantee sustainable farming practices.

• To guarantee access to finance for small and medium-sized enterprises (SMEs)

• To boost the managerial capacity of Agri-Business/SMEs as pipelines of fast growing enterprises that can evolve into corporate organizations.

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Who is eligible for AGSMEIS Loan

MSMEs are eligible in the following industries:

• Agriculture,

• Education,

• Healthcare,

• Services,(Hospitality, Restaurants, Catering, Services, etc.),

• ICT,

• Manufacturing / Production,

• Mining, Creative Industry (Fashion, Design, Crafts, Entertainment, etc.), etc.

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How to apply for AGSMEIS Loan Without Collateral

Step 1: Get trained

Train at a CBN-certified Entrepreneurship Development Institute (EDI) for a one-week mandatory training course.

Step 2: Apply for the Loan.

The Entrepreneurship Development Institute (EDI) will guide you and help you get all the papers you need to secure your credit.

You can obtain the current application form from the CBN EDC that trained you. But

Step 3: Receive funds

For eligible applications, funds are paid into the beneficiaries’ account.

Feedback is provided to unqualified applicants.

Step 4: Get Business Support Services

The Entrepreneurship Development Institute will assist you in implementing the business plan and commercially delivering business support services.

Step 5: Make Sales

Sell products and services for reimbursement and profit.

Step 6: Reimbursement

Run your business, keep records, monitor sales and expenses to maximize profit and repay the loan.

What is the interest rate for AGSMEIS Loan?

This is the question any serious prospective entrepreneur should ask. The AGSMEIS charges as little as five (5) percent interest for the first five(5) years on overall capital.

In other words, if you get One Million Naira(N1,000,000), you will be required to reimburse One Million Fifty Thousand Naira(N1,050,000) over the period of the loan.

Get more details at: www.nmfb.com.ng/sme

CBN AGSMEIS Loan Requirements

Get 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 with CAC

• Evidence of tax payments

• BVN

• Letter of Introduction

• Letter of Guaranty

• Certification by an EDI

• Passport photo of you and guarantor

• Valid ID card

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

• Your Pastor/Priest

• Chief Imam

• LGA Chairman

• CDA Chairman

• Village Head

• Senior Civil Servants Level 14 above

• Your friend or spouse can write the guaranty letter.

Important Notice: Please note that applicants who submitted last year and received a link to provide further details before the last requirements came out do not need to submit again.

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About NMFB

The National Microfinance Bank is Nigeria’s leading financial institution authorized by the Central Bank of Nigeria (CBN). The Company was established in 2019 as a Private Limited Company and began operations after obtaining a license from the CBN as a National Microfinance Bank. It is owned by the Bankers Committee by 50%, by NIRSAL by 40% and NIPOST by 10%.

Until now, the bank has disbursed about 776 million loans under the AGSMEIS to eligible SMEs.

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Here is a list of CBN approved Entrepreneurship Development Centers EDC

There is at least one EDC center in each of the six geopolitical zones of the country. Here are their addresses.

CBN-EDC, Ibadan (South West)

Website: www.edcsouthwest.org
Address: Old SDSTC (Oyo Oodua Skill Acquisition Centre Premises),
Samonda, along Sango-UI Road,
Ibadan, Oyo State, Nigeria.

CBN-EDC, PortHarcourt (South South)

Website: www.ssedc.org
30 Trans-Woji road, Grace plaza, by Slaughter Bridge Woji Town,
Port Harcourt, Rivers State

CBN-EDC, Maiduguri (North East)

website : edcnortheast.com.ng
Address: Old Informatics Institute, Njimtillo, Kano Road,
Maiduguri, Borno State

CBN-EDC, Kano (North West)

Address: Murtala Muhammed Library Complex,
Kano, Kano State

CBN-EDC, Makurdi (North Central)

Off Jonah Jang Crescent,
Near Federal Secretariat,
Makurdi, Benue State.

CBN-EDC, Minna (North Central)

Address: Minna Innovation Institute,
Behind Niger State Sharia Commission,
Justice Ndajiwo Drive,
Minna, Niger State.

CBN-EDC, Enugu (South East)

Address: Ebenezer Villa Suite
8, Ogenyi Close, Off Cornerstone Avenue
Off Nike Lake Resort Road,
Enugu, Enugu State.

You can get more contact addresses of Entrepreneurship development centres in Nigeria @ https://www.boi.ng/edcpartners/

Frequently asked questions

How do I access the Loan?

Get trained by first selecting a CBN-Certified Entrepreneurship Development Institute (EDI) to guide you through the loan application process and ensure that all your documents are complete.

What is the interest rate for this loan?

The interest rate is nine percent (9%) per annum.

Do I need collateral?

No, this loan scheme does not require a collateral.

How long will it take to receive funds?

This loan scheme is designed to be easily accessible. The entire process is automatted. From application submittion to disbursement takes six(6) to eight(8) weeks.

Has disbursement started?

Yes we have disbursed over N25B and this is still ongoing.

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