Industry is an essential part of every society for development. Therefore, developing country must have functional industries. Industry creates employment, makes people to be financial stable and also encourages economic growth of a country. For this reason, the Central Bank of Nigeria (CBN) introduced loan to support creative Industries in Nigeria. In this post, we will show you how to apply for CBN creative industry loan.
It’s in the industry that we have art and craft and other creative works! This creative area of industry is lagging because of unavailability of funds to help the sector.
It is accurately observed that funds like loan is not readily available for this creative oriented category of individuals. Financing your business as a creative individual is not really encouraging because financial institutions rarely give loan to them but prefer to give loan to develop organizations or steady income receiving individuals.
However, it is never a point of hope lost as we are here to bring you the best way to receive financial aid from the central bank of Nigeria (CBN). See list of federal government interest free loans 2020.
What to know about the creatives loan
The financial bodies wish to help the creative industry by providing a bearable interest loan to the concerned individuals. However, this opportunity has its own terms of policy and conditions through which it operates.
For the financial bodies to finance this motive, an initiative called Creative Industry Financing Initiative (CIFI) was inaugurated. The initiative aimed at disbursing the loan to entrepreneurs in the creative industry to help them fulfil their creative and industrial dreams.
Eligibility for the loan
It is good to let you know that the loan is not meant for everybody; it is meant for a particular set of people. The initiative designed the scheme to help four creative areas in the creative industry!
The areas/department that the loan is meant for are;
- Fashion designs
- Information Technology
- Software Engineering
The above specifics and their related areas like the software engineering, movie and music production. Everyone in this specification can apply.
The Creative Industry Financing Initiative is offering up to N500 million to individual who need help for the realization of their creative dreams. The amount is huge because the creative field is capital intensive.
Requirements to access the loan
- It is required of anyone applying for this loan to be a member of the creative industry. Therefore, anyone who is not a member cannot access the loan.
However, there are various categories of industry that qualify for the loan. They are;
- Fashion and Information Technology categories can apply for a loan that can cater for their rent and other establishing services.
- Software Engineering is also a category that can request for up to N3 million loan.
- Music category has the opportunity to apply for loans that can cater for their training, rent purchase of equipment and service expenses.
- Movie Production is a category in the creative industry that can request for up to N30 million.
- Movie distribution category can request for up to N500 million.
How to apply for CBN creative industry loan
This loan can not be accessed without following appropriate application method. See how to apply below;
- Get a business plan: You must write a business plan for the business you are venturing into, and it must contain all necessary information regarding the purpose of the business and the amount it will cost to take off.
The business’ operation must be within the creative Industry.
After you have made your business plan available and agree with the terms and conditions of the loan, kindly proceed to any of the Nigerian financial institutions (Bank) to apply.
The bank will collect your proposal and vet it to see if you meet the eligibility criteria for the loan. If they see that you are eligible, your request will be granted.
The loan interest rate
The loan has interest, and it is not over 9% interest rate per year.
CIFI Plans For Loan Repayment
All the categories involved in this loan have its own special process for repayment. Below are the plans for repayment.
- Fashion, Information Technology and Music categories have a maximum of ten years to repay their loan.
- Movie production and Distribution categories also have a maximum of 10 years to repay their loan.
- Software engineering category have maximum of three years to repay their loan.
Conclusively, applying for Creative Industry Financing Initiative loan is the best option for whoever in the creative industry to establish a good business in Nigeria. Considering the financial challenges many people are facing, this loan will serve as a relief to fulfill creative dreams