CBN Ties Loan Application Portal: CBN Tertiary Institutions Entrepreneurship Scheme – All you need to know
The loan ranges from N5 million for individual/sole proprietorship/small company projects, to N25 million for partnerships/company projects.Central Bank of Nigeria don release new guideline for di Tertiary Institutions Entrepreneurship Scheme (TIES) wey dem tier-rubber to solve di palava of unemployment.
According to one statement from CBN, dem introduce di scheme as part of dia policy measures to address rising youth unemployment and underemployment.
Di aim of di scheme na to help access to finance for undergraduates and graduates of polytechnics and universities inside Nigeria with innovative entrepreneurial and technological ideas.
CBN offers new loans to Nigerian graduates to ‘fight unemployment’
The loan ranges from N5 million for individual/sole proprietorship/small company projects, to N25 million for partnerships/company projects.
The Central Bank of Nigeria has announced new loans for university and polytechnic graduates who are willing to set up businesses, saying the move is part of its effort to fight rising unemployment in the country.
The bank said the credit will be implemented under its Tertiary Institutions Entrepreneurship Scheme (TIES).
“The CBN, as part of its policy measures to address rising youth unemployment and underemployment, introduces the Tertiary Institutions Entrepreneurship Scheme (TIES) to create a paradigm shift among undergraduates and graduates of Nigerian polytechnics and universities, from seeking white-collar jobs to entrepreneurship,” the bank said. “The Scheme aims to provide an innovative financing model that will boost job creation, enhance entrepreneurship development, and support economic growth.”
The loan ranges from N5 million for individual/sole proprietorship/small company projects, to N25 million for partnerships/company projects.
Applicants for the first option of the award are expected to have graduated from any Nigerian university or polytechnic within the past seven years.
Their scope of activities must be around agribusiness, information and technology, creative industry, science and technology.
The loan has an interest rate of five per cent per annum from now to February 2022, and nine per cent from March 1, 2022.
Businesses are expected to start paying back after 12 months and repayment should be completed in five years.
Interested person can apply online via the designated online portal providing requisite information and documents, such as:
- First degree and NYSC discharge (or exemption certificate); valid mobile phone number (linked to your NIN), BVN, NIN, TIN, and email address.
- Evidence of business registration (certified true copies of relevant CAC documents); and Corporate bank account number of business.
Female entrepreneurs are encouraged to apply and are expected to take upto 50 per cent of the offers.
Existing businesses can also be qualified for funding through equity investment, the bank said.
Undergraduates too
The bank said that it will also distribute N500 million among the top five tertiary institutions under the national biennial entrepreneurship competition to raise awareness and visibility of entrepreneurial or technological innovations among undergraduates.
Areas wey di CBN Ties Loan go Focus on
Activities wey di scheme go focus on include innovative start-ups and existing businesses wey belong to graduates of Nigerian polytechnics and universities for di following areas:
Agribusiness– production, processing, storage and logistics
Information technology– application/software development, business process outsourcing, robotics, data management
Creative industry– entertainment, artwork, publishing, culinary/event management, fashion, photography, beauty/cosmetics;
Science and Technology– medical innovation, robotics, ticketing systems, traffic systems, renewable energy, waste management
Plus any oda activity wey CBN feel say dey okay to add from time to time.
Meanwhile, dem design dis scheme to implement am through three components – term loan component; Equity investment component and Developmental component.
Wetin di Term Loan dey about And di Requirement
Graduates of Nigerian polytechnics and universities dey eligible to participate under Term Loan Component
Applicant must be graduates of Nigerian polytechnics and universities within di past 7 years with entrepreneurial interest.
Dem fit apply online through di online portal wey CBN provide and dem need to provide di required information and documents like;
- Valid mobile phone number wey dey (linked to your NIN), BVN, NIN, TIN and email address;
- Evidence of business registration (certified true copies of relevant CAC documents)
- Corporate bank account number of business
- Get first degree certificate (BSc/HND/ or equivalent
- Get National Youth Service Certificate (NYSC) discharge or exemption certificate
Certificate of Participation issued by polytechnics and universities wey show proof of entrepreneurship training.
Di term loan dey classify into two tiers; di first tiers get loan limit of N5.0 million, while di second tiers get N25.0 million.
Both get tenor na 5 years and interest rate of 5% per annum (9% effective from March 1, 2022 or as CBN want am) and Moratorium na 12 months.
Wetin Equity Investment Component dey about
Di Equity Investment Component go be in form of injection of fresh capital for start-ups, expansion of businesses wey don already dey establish or reviving of business wey dey fall.
- Dem go implement dis component under di AgSMEIS Equity window, so di application for participation under dis na through submission for website wey CBN provide.
- Di investment limit go dey subject to di limit wey dey according to AgSMEIS Guidelines
- Investment period for dis component na maximum period of ten years (e no go pass December 31, 2031).
- E go get 3-year lock-in period before e go end, to fit encourage value creation and boost managerial capacity of businesses.
Wetin di Developmental Component dey all about
Dem go share di Developmental Component in form of grants to Nigerian polytechnics and universities for di national biennial entrepreneurship competition.
Nigerian polytechnics and universities go compete to raise awareness and visibility of entrepreneurial/technological ideas among undergraduates during di competition.
Di process to participate under di Development component go be through submitting of application for di website wey CBN provide.
Experts go come evaluate di entrepreneurial and technological innovations wey di Nigerian polytechnics and universities submit, then di top 5 go get di grant prize wey be;
First place – N150.0 million;
Second place – N120.0 million;
Third place – N100.0 million;
Fourth place – N80.0 million; and
Fifth place – N50.0 million.
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