How To Apply For FG 75bn Loan For MSMEs; Eligibility and Procedures (to be disbursed in January 2024)
FG Launches 75bn Loan Program for MSMEs: Your Guide to Accessing Financial Boost
Presidential Palliative Program injects much-needed financial support to Micro, Small & Medium Enterprises (MSMEs) across Nigeria with a ₦75 billion loan program, set for disbursement in January 2024.
This initiative holds the potential to transform businesses, unlock opportunities, and empower entrepreneurs. Let’s break down the program’s key aspects:
Eligibility:
- Existing Businesses: Must be operational for at least one year.
- Startups: Must be registered businesses.
- Manufacturers (up to ₦1 billion): At least 6 months’ corporate banking relationship required.
Documents:
- CAC business registration documents.
- Company’s bank statements for one year (existing businesses) or Chief Promoter’s bank statements for one year (startups).
- Additional documents may be requested by the bank.
- Personal guarantee of the promoter.
- Acceptance of BVN Covenant and any other requirements by the bank.
Repayment:
- MSMEs: 36 months with monthly equal installments (no moratorium).
- Manufacturers:
- Working Capital: 12 months equal installments of principal and interest.
- Asset Financing: 6-month moratorium, 5-year repayment period.
Key Features:
- Transparency and Efficiency: Disbursement of funds to qualified businesses will be swift and transparent.
- Digital Transformation: Online application platform accessible through smartphones and computers, enabling convenient application from anywhere.
- Financial Literacy: The program provides resources and training to empower SMEs with financial management skills.
Frequently Asked Questions:
- How to access the loan? Apply online through the provided link, and disbursement will be handled by your bank if you meet the eligibility criteria.
- Loan terms? 36 months for MSMEs (Working Capital) and Manufacturers (Working Capital), 60 months with 6-month moratorium for Manufacturers (Asset Financing).
- Interest rate? 9% per annum.
- Partner company applications? Applicants must have a registered business (sole proprietorship, partnership, or limited liability company).
- Repayment terms? Equal and consecutive monthly installments of principal and interest for the loan tenor.
- Application status checking? Login to your profile or follow up with your bank after initial processing.
Additional Tips:
- Prepare all required documents before applying.
- Review the eligibility criteria carefully and ensure you meet them before applying.
- Provide accurate and complete information in your application.
- Attend any financial literacy training offered by the program.
- Monitor your application status through your online profile or with your bank.
This ₦75 billion loan program presents a golden opportunity for MSMEs to access finance, expand their businesses, and contribute to Nigeria’s economic growth. By understanding the program’s details and preparing efficiently, entrepreneurs can leverage this initiative to take their ventures to the next level.
