POSSIBLE AGRIC LOANS Part 8
AGSMEIS, Agri-Business CBN Loan Registration Application Form Portal 2020/2021
Agri-Business Small and Medium Enterprises Investment Scheme (AGSMEIS) in an initiative of the Bankers’ Committee in a bid to support and complement the Federal Governments’ efforts at promoting Agri-business/Small and Medium Enterprises as a vehicle for sustainable economic development and employment generation.
The guidelines on accessing CBN AGSMEIS Loan also included the Accelerated Agricultural Development Scheme (AADS) and seven other intervention schemes in its bouquet.
How the CBN AGSMEIS Loan works
- The CBN would create a Fund to be known as ‘AGSMEIS Non-Interest Fund’ that will be domiciled in a dedicated account with the apex bank
- Each non-interest deposit Bank (full-fledged or window) was to set aside 5% of its Profit After Tax (PAT) annually as contribution to the Fund
- Each non-interest Deposit Bank (full-fledged or window) was to transfer its contribution to the CBN not later than 10 working days after the Annual General Meeting (AGM) of the participating bank.
- Eligible activities under the Scheme are businesses across the agricultural value chain, covering production inputs supply storage processing logistics and marketing
- Others included MSMEs in the real sector including manufacturing, ICT, mining, petrochemicals and the creative industry as well as other activities as the CBN may determine from time to time.
How to access or apply for CBN AGSMEIS Fund Loan
The application of the Fund shall be categorized into three broad components. They are debt, equity and developmental components.
- The debt component shall constitute 50% of the fund which shall be disbursed as financings to eligible businesses through Non-Interest Deposit Money Banks.
- Asset purchased shall be registered with the National Collateral Registry (NCR)
Highest Amount one can get from CBN AGSMEIS Fund Loan
The financing limit for CBN AGSMEIS fund loan is N10,000,000 (Ten million Naira)
Interest rate of CBN AGSMEIS Fund Loan
The mark up interest per annum is 5%
How long does the CBN AGSMEIS Fund Loan last?
Tenor: Up to 7 years (depending on the nature/gestation period of the project)
Moratorium: Maximum of 18 months for principal and 6 months on mark-up.
Documentation Requirements needed to apply for CBN AGSMEIS Fund Loan
- Duly completed application form
- Bank Verification Number (BVN)
- Certificate of Training from recognized Entrepreneurship Development Institution (EDI) or evidence of membership of organized private sector association.
- Letter of introduction from any of the following: Clergy, Village Head, District Head, Traditional Ruler, senior civil servant etc. (for individuals, microenterprises only)
- Evidence of registration of business name or certificate of incorporation and filing of annual returns (where applicable) in compliance with the provisions of the Companies Allied Matters Act (1990)
[ALSO READ] 9 Traits of Financially Successful Farmers
How to Apply/Register for CBN AGSMEIS Fund Loan
All interested candidates can apply by clicking here
Sources of Fund to AGSMEIS CBN Loan 2020
This initiative requires all Deposit Money Banks (DMBs) to set aside 5% of their annual profit after tax (PAT) and as at December 2017, about N26bn has been accrued from all DMBs for the scheme
The fund is domiciled with Central Bank of Nigeria and below are some of the banks’ contributions in 2017:
GTBank with second highest profit in 2017 after Zenith Bank contributed N6.3 billion out of the N107.5 billion profit after tax reported in 2017.
Zenith Bank with N177.9 billion profit in 2017 deposited N5.69 billion for the investment in AGSMEIS while Access Bank contributed N3.2 billion out of N61.99 billion profit reported in 2017
Sterling bank, with N8.5 billion profit 2017 contributed N259 million to the AGSMEIS
Access bank (the arm formerly known as Diamond Bank) contributed N141 million to the pool.
To apply, click here
More than anything else, the information above will fertilise your sense of loans possibilities. You might also be fortunate to get your heart desire in getting a loan for your agric business. The point is for you to make a move and be determined. Like I always believe and practice, anything is possible!