The Central Bank of Nigeria and NIRSAL have joined forces to launch an innovative loan program – the non-interest loan facility.
Designed to empower and support Nigerian households, AGSMEIS (Agriculture Gradual and Small Business Enterprise Scheme) and MSMEs (Micro, Small and Medium Enterprises), this loan offers a unique opportunity for those who fit the criteria to access financing without the constraints of traditional interest-based loans.
If you’re eager to learn more and if found eligible, here’s a step by step guide on how to apply for the CBN non-interest loan.
Household / SMEs – NON-INTEREST TARGETED CREDIT FACILITY (TCF-NI)
The TCF, or Non-Interest Targeted Credit Facility, is a ray of hope for Nigeria’s households and businesses – particularly the Micro, Small and Medium Enterprises – who’ve been hard hit by the COVID-19 pandemic.
These interest free grants are designed to provide much needed funding for businesses to get back on their feet, and to offer support to households still struggling to make ends meet.
Applying for TCF? Great! The loan amount is NGN 2.5 million with a 3-year repayment period. You also have a 6-month moratorium to delay payments, providing a helpful breathing space.
AGSMEIS – NON-INTEREST AGRI-BUSINESS, SMALL AND MEDIUM ENTERPRISE INVESTMENT SCHEME (AGSMEIS-NI)
The Non-Interest Agri-Business, Small and Medium Enterprise Investment Scheme, also known as AGSMEIS-NI, is a funding scheme launched by the Federal Government of Nigeria to boost the agricultural sector. The program aims to provide financial support to small and medium enterprises in the agricultural industry, which will, in turn, lead to economic growth and job creation. The central bank, CBN, oversees the implementation of the funding scheme and plays a critical role in disbursing funds to eligible businesses.
AGSMEIS-NI is a significant initiative that has the potential to uplift the agricultural sector in Nigeria. By providing financial support to small and medium enterprises in the agricultural industry, the program seeks to promote food security, increase productivity, and enhance the livelihoods of farmers. The scheme is open to eligible applicants from all over the country, including women and youths. The program has a non-interest loan structure, making it more accessible to businesses that are not eligible for traditional bank loans.
There are various means for businesses to secure financing beyond the popular AGSMEIS funding scheme. One alternative is the availability of non-floral products that comply with Islamic financial transaction principles.
These products provide a distinct set of features such as Murabaha and Ijarah, each designed to meet the specific growth and financial requirements of businesses. From acquiring raw materials and equipment to accessing working capital, these non-floral products demonstrate that there are diverse funding options that align with Islamic principles while simultaneously supporting the development and success of businesses.
AGSMEIS-N has a financing limit of N10,000,000.00 with a tenor of 7 years
tenor (depending on the nature of the project). As an applicant, you may enjoy an added period of 6 months as a moratorium.
Important Link: AGSMEIS Loan Application
How To Apply For CBN Non-Interest Loan
If you want to apply for a CBN Non-interest loan for households and SMEs, here’s what to do:
- First, start by going to the NIRSAL microfinance website
- Next, tap on “Apply for Non-Interest Facility”. When you tap that, it will provide you with two options. These options are “NON-INTEREST TCF” and “NON_INTEREST AGSMEIS“. Click on the “NON-INTEREST TCF” tab.
- Once you tab the NON-INTEREST TCF tab, you will see two options: Household facility and SME facility. Pick the option that is most appropriate for you. Thereafter, you can start the registration properly.
- You will be asked if you are just a new applicant or returning to your previous application. If you are applying for the first time, select “New Applicant”.
- Next, move ahead to input your BVN. This will automatically produce some of your details. Fill in the empty fields required with your other details.
If your application is successful, you should receive a congratulatory message for applying successfully. If you have a business that you have registered with CAC, you can opt for the SME facility. You just need your business’ TIN number and other information related to the CAC registration.
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