This is positive news for Nigerian business owners. The Presidential Intervention Fund is a new initiative launched by the administration. This plan has N200 billion committed to help small businesses thrive. There are different requirements for an MSME loan and a manufacturing loan. Here’s the fundamental breakdown:
MSME Loans (up to 1 Million Naira)
- Your business must be registered and running for at least a year, or you must have a registered startup.
- You’ll need to show documents like your business registration and bank statements.
- Your business needs to meet certain sales targets each month.
- You’ll need to provide a personal guarantee and agree to some security measures set by the bank.
- Loans must be repaid in equal monthly payments over 3 years, with no grace period.
Manufacturing Loans (up to 1 Billion Naira)
- You can choose a loan for your business’s everyday needs (working capital) or to buy equipment (asset financing).
- Your business needs to have a good banking relationship for at least 6 months.
- You’ll need to provide additional documents as requested by the bank.
- Asset financing loans must be repaid over 5 years.
- Working capital loans have a 6-month grace period where you don’t pay anything, followed by 1 year of equal monthly payments.
Who is Eligible?
You can apply if you run a small business in Nigeria. There are two types of businesses that can apply:
Existing businesses: If your business has been running for at least one year, you can apply.
Registered startups: New businesses with official registration can also apply.
Requirements?
- Proof of your business: You must provide paperwork proving that your firm is lawful. These records are known as CAC documents.
- Existing enterprises must present their bank statements. If you’re a startup, you can reveal the chief promoter’s bank statements.
- Good business performance: Your company must generate a minimum quantity of revenue each month. The exact amount will be determined by the bank.
- Guarantees and agreements: You may be required to personally guarantee the loan and agree to the bank’s policies.
Questions and Answers
How much money may I receive?
The quantity of money you can get is determined on the nature of your firm and its demands. The initiative is divided into two parts: N75 billion for small and medium-sized enterprises (MSMEs) and N75 billion for manufacturers. For information on particular loan amounts, see the Bank of Industry’s website or your local location.
What are the interest rates and payment terms?
The banks who participate in the scheme will establish the interest rates and payback periods. It is critical to thoroughly consider these facts before applying. For further information, visit the website or speak with a representative at your local Bank of Industry location.
How long will it take to receive the money?
The procedure time for applications can vary depending on the bank and your situation. The government has reported success with initial disbursements, but it’s always best to check with the bank for their estimated processing timeframe.
