The Central Bank of Nigeria has discovered through a series of observations that there are certain job opportunities that could empower youths, men and women. But the lack of finance has been a stumbling block to this job creation process. Thus, the Central bank of Nigeria introduced the Micro, Small and medium enterprises development fund (CBN MSMEDF Loan) to aid in distributing finance to enterprises in dire need of it.
What are the Objectives of the CBN MSMEDF Loan
The CBN MSMEDF Loan set up by the Central Bank of Nigeria, was introduced to:
- Increase productivity in Micro, small and medium enterprises (MSMEs).
- Create jobs for the general public.
- Promote inclusion and diversity in the market.
What businesses are Eligible for the CBN MSMEDF Loan?
The following businesses are eligible for the CBN MSMEDF Loan;
- Cottage industries.
- Renewable and alternative energy.
- General commerce.
- Other approved businesses by the CBN.
Terms and Conditions of the CBN MSMEDF Loan
Amount: The Central Bank of Nigeria is willing to loan up to N10 Million for the Micro, small and medium enterprises.
Methodology: The CBN MSMEDF Loan is set out for Micro Enterprises, small and Medium Enterprises and is established for interested Nigerians only.
Rate: This CBN loan has a single digit interest rate of 9% per annum.
Tenor: After funds have been released successfully, the receiving MSME has a tenor of between 1 – 5 years to repay the loaned funds with interest.
Note that the payment of funds would be directly to the account with the Participating Finance Institution (PFI) with which he or she applied.
If you are interested in renewable and alternative energy, click here to learn amazing facts about energy.
What Documents and Information are required for the CBN MSMEDF Loan
The documents and info requested are;
- A Certificate to be held as Collateral. One of the following is accepted:
- ND – National Diploma Certificate.
- NCE – National Certificate of Education..
- NABTEB – National Business and Technical Examination Board.
- HND – Higher National Diploma.
- BSC – Bachelor of Science / Engineering / Arts.
- NYSC Discharge certificate.
- Your Bank Verification Number – BVN.
How to Apply for the CBN MSMEDF Loan
Locate an approved Participating Finance Institution (PFI).
Indicate interest and apply for the CBN MSMEDF Loan at the Participating Finance Institution. The PFI will do all work from here after application.
The PFI will review your application on several basis including economic and financial viability.
The application will be forwarded by the PFI to the Central Bank of Nigeria.
CBN will approve after proper assessment and disburse the requested fund to the applicant’s bank account in the PFI.
You can now receive your requested loan.
Thanks for checking out this One Smart Way to apply for the CBN MSMEDF Loan. Please share and leave your questions and thoughts in the comment section.