About The New Government Agricultural CBN Loan
The new Agricultural By CBN for 2021 was promulgated by the Decree No. 20 of the year 1977 and kicked off operations in April 1978. The original share capital for this Loan as proposed and it’s paid-up capital were N100 million and N85.6 million, respectively and remains so till date. The Central Bank of Nigeria holds 40 percent of the shares while the Federal government of Nigeria holds a larger share of 60 percent.
Go to https://www.cbn.gov.ng/devfin/acgsf.asp to apply for this loan.
As of the year 2021, the base capital of this Scheme was increased to as much as N3 billion naira. The Fund with this new development guarantees credit facilities given by bank to farmers up to 75% of the amount in default net of the realized security. The Central Bank of Nigeria manages this fund, Handles and overseas the day-to-day operations of this Scheme. The laid down Guidelines stipulates the eligible ventures or persons that could benefit from this, for which guarantees can be dished out by the Scheme.
Accessing the CBN Agricultural Loan 2021
The CBN Loan application is specifically categorized into three broad components. They are debt, equity and developmental components.
For the debt component, it constitutes 50 percent of the fund that will be disbursed as financial aid to the businesses/ventures found eligible through Money Banks with Non-Interest deposits.
The National Collateral Registry (NCR) is incharge of registering assets purchased.
- Loan Financing limit: N10,000,000 naira
- Mark-up: 5 percent per annum
The National Collateral Registry (NCR) is charged with registering any assets purchased.
- Loan Financing limit: N10,000,000
- Mark-up: 5 Percent per annum
- Tenor: Approximately 7 years (depends solely on the gestation period or nature of the embarked
- Moratorium: As stated by the terms of the loan, a maximum of eighteen months is proposed for principal and six months for the mark-up.
CBN Agricultural Loan 2021 Requirements
1. The application form will be completed by applicants
2. Bank Verification Number (BVN) required.
3. Must possess a Certificate of Training from reputabld or known Entrepreneurship Development Institution (EDI)
4. Applicants will have to present a Letter of Introduction from any of the aforementioned personalities, a Village Head, clergy, traditional ruler, District Head or a senior civil servant etc (this is for individuals or microenterprises only). This is a compulsory requirement for candidates who wish to benefit from this Scheme.
5. Applicants must present evidence of registration of their business name from CAC to ensure their venture is a duly registered entity, or a certificate of incorporation and filing of annual returns (where necessary) in total compliance with the Companies and Allied Matters Act (1990) provisions
This Agricultural Scheme for 2021 by CBN is aimed towards Nigerian citizens between the ages of 18 and 35 years, it seeks to promote interaction between state governments in the country, the CBN and other stakeholders in the agricultural sector in each state in Nigeria.