What if I told you that it is possible to acquire CBN low-interest loans that you can use to start or boost your business without having to pay the excessive interest rates and hefty associated charges relevant with most lending institutions, would you go for it?
The Central Bank of Nigeria(CBN) through the use of its intervention funds offers low-interest loans that you can access and I must tell you that it is the cheapest bet you would likely get when considering the current Nigeria’s inflation and monetary policy rates. CBN low-interest loans are developed with the aim of encouraging economic growth and stability amongst Nigerian owned businesses(small and large). At its 5%-9% interest rate range for each loan amount and duration you can be confident that you would easily repay and garner profit for your business at the same time. What are you waiting for?
This article aims to share some of the top CBN low-interest rate loans you can access for your business, however I must inform you that you would have to be a customer of an eligible CBN Participating Financial Institutions (PFI’s) as CBN does not disburse these loans directly but does so with the help of its PFI’s.
Top CBN Low-interest Loans You Can Access
Agri-Business Small and Medium Enterprises Investment Scheme (AGSMEIS)
The AGSMEIS is a CBN managed intervention program that was developed by the federal government in a bid to increase employment and support sustainable economic growth businesses. This CBN low-interest loan offer which is up to N10 million at 9% annual interest for 18months – 7 years period is aimed at developing micro, small, and medium-sized enterprises (MSMEs) involved in the provision of inputs, production, storage, processing, logistics, and marketing. Examples of businesses eligible are mining, petrochemicals and manufacturing.
Anchor Borrower’s Programme (ABP)
The Anchor Borrowers Programme which is a single-digit loan fund is an agricultural fund that was set up in 2015 and managed by the Central Bank of Nigeria (CBN). The goal of this CBN intervention fund is to establish a financial connection between smallholder farmers and agro-processors and also to groom small holder farmers products to meet demands of the international agricultural market.
Here farmers are given loans and agricultural inputs (fertilizers, seeds etc.,) without any collateral. It is considered more so low-interest as loans can be paid back with cash or harvested goods of equivalent worth. According to reports the ABP since its establishment has successfully disbursed over N1.01 trillion, to more than 4.21 million smallholder farmers across the country.
Businesses who use agricultural goods as raw materials for their product manufacture (agricultural companies & industries) can also apply for this CBN loan.
Commercial Agriculture Credit Scheme (CACS)
The Commercial Agriculture Credit Scheme (CACS) is intended to boost agro businesses which includes crop cultivation, livestock and poultry rearing.
This intervention fund was developed by the Federal Ministry of Agriculture and the CBN. Since its establishment it has successfully boomed Nigeria’s agriculture, aided in job creation, and further increased wealth and food security.
The CACS is regarded as CBN low-interest rate loan as interest rate on this program is only 9%. Applicants can borrow up to N2 billion Naira on a 60 months repayment term, it is flexible indeed.
Real Sector Support Facility (RSSF)
The CBN through its Real Sector Facility low interest loan strives to enhance the industrial sector’s output, boost foreign exchange, and diversify revenue.
Businesses under the industrial sector who are devoted to manufacturing can also benefit from the still growing over N2.183 trillion that has been disbursed to about 414 projects so far as stated by the CBN. This is a good opportunity that is worth a try.
100 for 100 Policy on Production and Productivity (PPP)
This intervention fund-100 for 100 PPP is a sub-initiative developed from CBN’s Real Sector Support Facility-Differentiated Cash Reserve Requirement (RSSF-DCRR) and other intervention funds managed by the CBN.
The fund provides low-interest loans to private companies in need of funding for real-time projects. Private companies can apply as much N5 billion under the scheme. More than N68.13 billion has been disbursed under this window for about 50 projects in different sectors of the country.
Final Thoughts on CBN Low-Interest Loans
Application for each loans differs and you have to apply through CBN Participating Financial Institutions. CBN Participating Financial Institutions includes: Deposit Money Banks, Bank of Industry (BOI), Bank of Agriculture, etc., to get more information