COVID-19 has really posed a serious challenge to businesses, households and other human activities in the country. However, because of this, the Central Bank of Nigeria (CBN) has came up with an idea of helping business owners and households in Nigeria to recover from the challenges caused by the pandemic. In post, you will learn how to apply for CBN NIRSAL COVID-19 Loan in Nigeria.
In response to the challenges caused by this Covid-19, the Central Bank of Nigeria has announced a monetary package to help households and businesses either Micro, Small or Medium Enterprise (MSMEs) that were affected by Covid-19 pandemic.
The emergence of Coronavirus disease called Covid-19 brought sudden reduction in the production and distribution of goods and a serious chaos in financial markets.
This same disease also made entertainment and sporting centers to be banned as well as movement’ restrictions all over the country.
This particular challenge has made many people to lose their job in the country. In fact, in some areas, there is unbearable inflation of goods and service. Many business activities has experienced setback.
Regarding the above consequences that Covid-19 posed on livelihood and business activities, the Central Bank of Nigeria has announced N50billion Targeted Credit Facility (TCF) as a financial package to help households and businesses (Micro, Small and Medium Enterprises) that were affected by the pandemic.
Eligibility for NIRSAL Covid-19 Loan
Below are the eligibility criteria for NIRSAL Covid-19 Loan.
- Households that has concrete and conformable evidence of livelihood that is severely affected by Covid-19.
- Existing enterprises with genuine and conformable evidence of the adverse effect of Covid-19 on their businesses.
- Enterprises with reliable plans that is profitable regarding the opportunities brought about by the Covid-19 pandemic.
The interest rate of NIRSAL COVID-19 loan
The interest rate of NIRSAL Covid-19 loan under the intervention is 5% p.a (all inclusive) up to February 28, 2021. However, as from March 1, 2021, the facility’s interest will change to 9% p.a. (all inclusive)
The validity of the loan
One may ask that how long is the loan? Anyway, the working capital is for maximum period of one year without any possibility for rollover. However, term loan has a maximum period of three years with not less than a year moratorium.
One may also ask that how much can I access? Below is the accessible amount depending on the categories.
- Households: Households has an opportunity to request for up to N3million. That shows that the maximum amount that an household can access is N3million.
- Small and Medium Enterprises (SMEs): The accessible amount for SMEs shall be ascertained depending on their business activities, size of the enterprise/industry and also their cash flow. However, they have access to maximum amount of N25million.
- The working capital shall be a maximum percentage of 25% of the previous three years’ turn over. However, if the enterprise is not up to 3 years in operation, 25% of turnover of the previous years will be satisfiable.
NIRSAL COVID-19 loan application procedures
- Application: You are expected to submit an application letter to the NIRSAL Microfinance Bank (NMFB) to be accompanied with a genuine evidence of the unfavorable effect of Covid-19 pandemic or opportunity resulting from the Covid-19 pandemic.
Approval: Your application will be examined and forwarded to CBN for final approval.
Payout: CBN is the authority body that examines applications and gives final approval for payout to NIRSAL MICROFINANCE BANK (NMFB).
How to Apply for NIRSAL COVID-19 Loan
To apply for CBN NIRSAL COVID-19 Loan, kindly go to https://nmfb.com.ng/covid-19-support, and fill the loan application form.