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.

See Also: 10 Lucrative Agri-business Opportunities For Techpreneurs

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.

See Also: The Tech Skills That Will Position You For The Future

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:

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.

See Also: How To Start And Run A Profitable Cinema Business In Nigeria

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.

See Also: 5 Things You Should Do Before You Approach Investors For Seed Funding

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)

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

CBN-EDC, PortHarcourt (South South)

30 Trans-Woji road, Grace plaza, by Slaughter Bridge Woji Town,
Port Harcourt, Rivers State

CBN-EDC, Maiduguri (North East)

website :
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 @

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13 thoughts on “CBN AGSMEIS Loan 2020: How To Apply Without Collateral [updated]”

  1. The project is a genuine one, I know people that have been approved for it. It’s just that the stress that NIRSAL are putting applicants through is too much. Government is using the loan to help us but the demands are frustrating. After asking for invoices from vendors from applicants NIRSAL will at the end impose their own vendors on applicants and I feel this is not fair on them because you can’t force people to patronize your own vendors, what if they don’t have the brand of the equipment they want? I feel the most important thing is to let them enjoy this wonderful gesture with peace of mind, you can only go after them if they fail to pay their monthly returns to you. Thank you so much President Buhari. Long live Nigeria.

  2. Aliyu Abdullahi Maigari

    we thank the CBN for making this gigantic effort and We also hope that the fund will be easily accessible to Nigerian that have good ideas to contribute to the development of the economy through sme.

    1. We thank the federal government for giving its citizen the opportunity to acquire these loans to smallscale/medium scale entreprenuers. This is a gigantic project if executed rightly will make Nigerians smile again.

  3. A very fantastic and well structured programme. One thing people have observed in any of the policies of Nigerian Government is god-fatherism and sabotage. We hope this will scale through these hurdles and be a true life time encouragement to mostly downtrodden Nigerians. Its good programme in anyway. Let’s see how it goes.. Thank you FGN.

  4. I strongly support and agree with Muhammad Ali Abubakar comment. I am one of those Nigerians who are concerned that the those in privileged positions in government do not allow poor Nigerian people have access to those programs and facilities meant for developing SME’S. They conner all for themselves and their cronies. I suggest that CBN and The Bankers Committee should regulate/mandate that beneficiaries should apply through their recognised Associations of SME’S /ARTISANS. This will eliminate /check the fears expressed by the beneficiaries

  5. This is a long awaited dream come true,I want to grow vegetables/fish farm but I don’ t have a plot of land to begin with.Would cbn-agsmeis secure a plot of land for me so that I start my farm?

  6. Sometimes Nigerian have good creativity For downstream, but when it comes to monetary aspects sabotage and fatherism over takes everything.

  7. Muhammad Ali Abubakar

    If these works as it is written above, no doubt our dear nation will achieve for eradicating poverty and depend on ourselves for all our needs as independent country.

    Most of the programs designed even implemented but the ordinary citizens can’t see or touch let alone feel that their government is working hard towards them.

    But those on top, scoop not allow it to reach ordinary Nigerians that are sitting on bear floor.
    When u see the words of programme on the paper and reading it and u will be happy like it is for every Nigerian whose deserves it, but when u starts processing it, there u will realize that the whole thing is just mainly for particular group of people…I hope this very one of 2019 it is different from the previous one’s..

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