How to Apply for Agric Business Loan – Agricultural Small and Medium Enterprises Investment Loan

How to Apply for Agric Business Loan – Agricultural Small and Medium Enterprises Investment Loan

Do you own a business and need working capital to stimulate your business growth to keep it running. Or want to start a new business? Agric-Business Small and Medium Enterprises investment (AGSMEIS) loan could be a good option for you.

Agri-business small and medium enterprises investment (AGSMEIS) was created specifically by the federal government to provide financial support for agricultural businesses of all levels (micro, small, medium enterprises).

What is Agric Business Small and Medium Enterprises Investment Scheme (AGSMEIS)?

AGSMEIS is a federal government intervention funding scheme through Centre Bank of Nigeria to promotes Agric businesses as a tool for sustainable economic development and employment generation.

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CBN is collaborating with Financial Institutions to support and complement the Federal Governments’ efforts at promoting Agri-businesses/Small and Medium Enterprises.

Features of AGSMEIS

• Interest Rate: 5% per annum
• Tenor: 7 years.
• Moratorium: Maximum of 18 months on Principal and 6 months on Interest

Eligible sectors

• Agricultural sector.
• Real sector including Manufacturing, mining, and petrochemicals.
• Service sector including Information and Communication (ICT) and the Creative Industry.
• Other businesses as determined by the Central Bank of Nigeria (CBN).

Agric Business Loan Requirements

• Properly completed application form.
• Bank Verification Number (BVN).
• Certificate of Training from participating Entrepreneurship Development Institution (EDI).
• Letter of Introduction from any of the following, Clergy, Village Head, District Head, Traditional Ruler, senior civil servant, etc..
• Evidence of registration of business name or certificate of incorporation and filing of annual returns (where relevant) in compliance with the provisions of the Companies and Allied Matters Act (1990).
• Tax Identification Number (TIN) and current Tax Clearance Certificate TCC) where relevant.
• Participating Enterprise Development Institute will submit your form to CBN.
• CBN will ask banks to verify your account details and then CBN proceeds to conduct its own assessment.

How to Access Agric-Business Small and Medium Enterprises Investment Loan

How to Apply for Agric Business Loan

Go for EDI Training: You will first undergo compulsory training with any of the CBN certified Entrepreneurship Development Institute (EDI) centers spread across the country.

AGSMEIS Loan Application: The Entrepreneurship Development Institute (EDI) will guide you on how to applying for the AGSMEIS loan. And assist you to get all supporting documents required to process the AgGSMEIS loan

Receive AGSMEIS Funds: The AGSMEIS Loan fund is paid into the account of beneficiaries.

Enjoy EDI Business Support Services: The Entrepreneurship Development Institute (EDI) will assist you to implement your AGSMEIS business plan and provide business support services commercially.

AGSMEIS Loan Repayment: Once you have accessed the AGSMEIS loan and set your business running, The next thing is to start generating revenue and begin to pay back the AGSMEIS loan.