The Agri-Business/Small and Medium Enterprise Investment Scheme (AGSMEIS) loan is a laudable initiative by the Central Bank of Nigeria (CBN) aimed at providing financial support to agricultural businesses and small and medium-sized enterprises (SMEs). If you’re interested in accessing the AGSMEIS loan, this article will guide you through the process of applying and the requirements you need to fulfill.
The AGSMEIS loan is designed to stimulate economic growth, create employment opportunities, and empower entrepreneurs in Nigeria. It offers favorable interest rates and long repayment tenures to encourage business development.
The loan is available to individuals and businesses operating in sectors such as agriculture, manufacturing, creative industry, education, healthcare, and more
You may also like to check how to access loans from CBN Anchor Borrowers programme.
Please be informed that the CBN AGSMEIS loan application for 2023 is still ongoing, and we are here to guide you on how to apply for the loan.
Through AGSMEIS, you can access a loan of up to N10 million from the CBN. The interest rate is only 5%, and no collateral is required.
Before we proceed to explain how to apply for the CBN AGSMEIS loan, let’s provide you with further clarification by addressing some pressing questions.
What is the aim of AGSMEIS?
The objectives of the scheme are to ensure;
- Small and medium enterprises have access to finance.
- Create employment opportunities in Nigeria.
- Development of agricultural value and sustainable agric practices.
- Boost the managerial capacity of Agric businesses for national development.
List of sectors eligible for CBN AGSMEIS loan
CBN MSMEs eligible sectors include;
- Agricultural businesses
- Services (Hospitality, Restaurants Catering, Services)
- Creative Industry (Fashion, Design, Crafts, Entertainment)
CBN AGSMEIS Loan Conditions
Here are conditions that must be met begore you can access CBN AGSMEIS;
- Applicant must have been trained by an Entrepreneur Development Institute (EDI)
- Must apply for the loan through EDI, and from there the applications will be sent to CBN for processing.
- Applicants will be called for an interview regarding his/her business, and those qualified will be contacted and given the loan.
Requirements for CBN AGSMEIS loan
Below are the loan requirements for approval and disbursement of funds to applicants;
- Business must be registered with Cooperate Affair Commission (CAC).
- Must privide evidence of tax payments
- Bank Verification Number (BVN)
- Letter of Introduction
- Valid government issued ID card
- Certification by an EDI
- Passport photo of applicant and guarantor
- Letter of Guaranty
Who can write letter of introduction for AGSMEIS loan?
Any of the following can write the letter:
- Your Pastor
- LGA Chairman
- Village Head
- Chief Imam
- CDA Chairman
- Senior Civil Servant (above level 14)
AGSMEIS loan interest rate and duration
The loan interest rate is 5% for the first five years. Example: If you obtain N1million loan, you will pay back N1million + N50,000 throughout the duration of the loan.
How to apply for AGSMEIS loan
Below are steps to apply for CBN AGSMEIS loan;
1. Apply for loan as EDI
2. Apply as applicable
3. Receive funds
Loans are paid into the bank account of the beneficiaries.
4. Get business support services
The Entrepreneurship Development Institute assists you to implement business plan and provide business support services commercially.
The AGSMEIS loan presents a significant opportunity for entrepreneurs and SMEs in Nigeria to access affordable financing for business growth.
By understanding the application process and fulfilling the requirements, you can increase your chances of securing the loan.
Remember to develop a comprehensive business plan and submit all necessary documents accurately. Embrace this opportunity to boost your business and contribute to the economic development of Nigeria.