How To Apply For CBN COVID-19 Loan: Due to the current pandemic the world is facing(COVID-19), many businesses are on a standstill. To make up for the damage to the economy, most governments and government-owned agencies have put in initiatives to help curtail the effect of social distancing and help small/medium businesses stay afloat.
The Central Bank Of Nigeria (CBN) is one of the few disbursing cash to the citizens of Nigeria. You need to apply for CBN loan to get a part of the ₦50b intervention loans budgeted for this.
What Is The Criteria To Apply For CBN COVID-19 Loan
- The loans’ target is micro, small, and medium businesses. NIRSAL(Nigeria Incentive-Based Risk Sharing System For Agricultural Lending) says they’ve received about 80,000 applications so far.
- Applications for the loan is completely free. You aren’t to pay a single kobo concerning the application.
- Though it is free, a business proposal is ideal when submitting your application to hasten things. Due to poor orientation on how to write a business plan, the CBN has made available a means to create a business plan at little expense.
Am I Eligible To Apply For the COVID-19 CBN Loan?
If you or your enterprise falls under this category
- Enterprises with verifiable proof of business activities affected by the Pandemic (COVID-19)
- Households whose evidence of livelihood was affected by the pandemic.
- Businesses with bankable plans to seize advantage of the loan.
What Are The Loan Limits
The loan shall be determined based on your ability to pay back, your business activity, cash flow, and industry size.
- Businesses and enterprise have a maximum if ₦25m
- Households are eligible to ₦3m at most.
- Working capital shall be about 25% of the average of the businesses’ previous years’ turnover.
What Is The Payback Interest? And How Long Will I Have To Payback?
The intervention loan attracts an interest of 5% per annum from the day you collected it till February 28th, 2021.
If your unable to pay after this date, the interests become 9% from March 1st, 2021.
What Are The Possible Collateral?
As at the time of writing this article, the following are the POSSIBLE collateral NIRSAL MFB may require.
- Comprehensive insurance over your assert.
- Life insurance of the head man of the business with NMFB as the first loss payee.
- An irrevocable domiciliation of proceeds.
- Deed of stocks(debenture), in the perfectible state.
- Moveable assets registered to NCR(National Collateral Registry)
Go to this site to download the official guarantor’s form.
See more at the PDF down below.
Application Requirements For NIRSAL COVID-19 Loan
Simply click this link to go to NIRSAL Official site for more detailed information or keep reading below
Eligible Micro, Small, Medium Enterprises or Households
- Submit applications to NIRSAL Microfinance Banks in your area.
- The application must contain your Business registration(if applicable), business plan, BVN Number (see how to check your BVN here), evidence to show how you or your business was affected by COVID-19.
- NMFB shall conduct and appraise due diligence applications.
- Upon satisfaction, NMFB forwards the application to CBN.
- CBN reviews and gives final approval for NMFB disbursement.
Eligible Corporate Entity
- The application must show proof of the effect of COVID-19 to the corporate entity.
- NFMB reviews the diligence of the application.
- NFMB now forwards the application to CBN, who, in turn, gives it’s a verdict and approves disbursement.
Go Below For More details on this in the PDF attached to this article.
How Can I Find NIRSAL MFB Around Me?
To find NIRSAL banks around you, click this link and scroll down the list to locate the nearest bank to you.
Click The Link Below To Download/View This PDF To See More Details On The CBN NIRSAL COVID-19 Loan
Hope you get what you need to survive this disaster, we will get over this, thanks for reading, please share to those in need.
This article was last updated on 16th April 2020.