Agricultural Loan In Nigeria and Requirements 

In Nigeria, agriculture is a state policy that has existed years. In order to assist farmers produce more for food sufficiency and security, the Federal Government of Nigeria rolled out several agricultural loan schemes designed to assist farmers with funds to support their farming in order to increase output for local consumption and export. Also check Bank Of Agriculture (BOA) Loan Portal and Requirement.

With the right equipment and environment, agricultural business is one that will consistently give you great profit as long as you have all it takes to cultivate and plant, although agriculture is not only limited to cultivation as there are many branches such as poultry, piggery, fishery, etc. irrespective of the one you choose to do, all forms of agriculture bring in good profit.

Interestingly, agriculture produced the richest men of the world in old times. This only goes to prove that agriculture, being as old as the man himself, is a business of limitless seasons, as long as you have the right tools for it.

Types of Federal Government Agricultural Loan in Nigeria

Below are some of the federal government agricultural loans that you can apply for;

1. Commercial Agriculture Credit Scheme

This loan scheme was designed to cater to the needs of agricultural ventures that boasts of assets of up to 100 million naira

Requirements for this Loan:

  • You must be a participant in the areas of cash crops, livestock, poultry, aquaculture
  • Have at least 100 million in asset

2. Real Sector Support Facility

This is very interesting because it has a reimbursement period of 15 years and a very low bank interest rate.

Need Federal Govt Free-Interest Loan? =>See Here.

Requirements for this Loan:

  • Business plan
  • Certificate of business registration
  • Memorandum and Article of Association
  • Application must be submitted formally
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3. Micro SME Development Fund

Like all federal government loans, this type of loan also comes with a very low interest rate that will not have any negative effect on your business when paying. By applying for this loan, you enjoy the following:

  • Overdraft/term loan
  • Interest rate of just 9%

4. Bank of Agriculture Loan (BOA)

The Bank of Agriculture Loan (BOA) remains is the biggest avenue through which the federal government support farmers in Nigeria via the CBN. However, you need to fulfil the requirements below to get this loan:

Requirements for the BOA loan

  • 20% payment of the loan upfront
  • You must have 6 months relationship with your bank in regular payments into your account
  • A complete business plan
  • Verified physical collateral

Conclusion

In our next article which will discuss, elaborately, on the Bank of Agriculture, you will get to learn about the types of loans that BOA offers and the requirements for obtaining any of the loans.

Source: Nyscinfo

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Humphery

Humphery is a seasoned internet entrepreneur and a life coach. He has been the Nyscinfo ambassador since 2017. He is knowledgeable enough to guide you. Keep following this website for updates, we love you!

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