Looking for a low-interest rate loan to grow your small or medium-sized enterprise (SME) in Nigeria? Check out this informative article on how to apply for a CBN SME Loan 2023/2024. Discover the eligibility criteria, required documents, and benefits of the loan, as well as tips for successful repayment. Don’t miss out on this opportunity to take your SME to the next level. Apply now!
Frequently Asked Questions on MSMEDF
- How Can I (Or My Company) Access The MSMEDF?
Prospective borrowers should approach Participating Financial Institutions (PFIs) of their choice and apply for the Fund.
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- What categories of entrepreneurs can apply for the Fund?
(a) Micro entrepreneurs (i. e. borrowers seeking loans of less than N500,000) are to approach any of the four institutions:
Microfinance Banks NGO/Microfinance Institutions
Financial Cooperatives Finance Companies
(b) Small and Medium Enterprises (SMEs) (i.e. prospective borrowers seeking between N500, 000 and N50million) are to approach any of these institutions:
- Deposit Money Banks
- Bank of Industry (BOI)
- Bank of Agriculture)
- Who are the Participating Financial Institutions?
The PFIs under the Fund are as follows:
Micro borrowers (N500,000 to N5,000,000) would approach:
- Microfinance Banks
- NGO-Microfinance Institutions
- Finance Companies
- Financial Cooperatives
SME borrowers (N5,000,000 to N50,000,000) would approach:
- Deposit Money Banks and Development Finance Institutions (Bank of Agric and Bank of Industry)
- What are the activities that can be financed under the Fund?
- Agricultural value chain activities,
- Manufacturing & Cottage Industries,
- Trade and general commerce,
- Renewable energy or energy efficient products and technologies, and
- Any other income generating projects as may be prescribed by the CBN.
- Prospective borrowers shall provide the requisite documents including collateral for SME loans;
- PFIs will appraise loan applications, approve and forward loan requests of borrowers to the CBN for the release of funds;
- MSMEDF will only release funds to borrowers through the PFIs;
- The account of benefitting borrower’s shall be credited by the PFIs within 5 working days upon the release of Funds by MSMEDF to the PFI;
- Loans shall be granted at an interest rate of 9.0% per annum (all charges inclusive) irrespective of the type of eligible activity financed;
- Borrowers shall be expected to payback all loans as and when due inclusive of any accrued interest to the PFI; and
- The MSMEDF/CBN will recycle all fully repaid loans transferred to it by the PFIs.
Visit Wema Bank official website to apply