Financial inclusion can be promoted through Small and Medium Scale Enterprises which is designed to create employment and economy development, improvement of local technology, development of indigenous entrepreneurship and forward integration with large-scale industries. The Central bank of Nigeria has row out SME and Agric Loan an array of MSME banking solutions designed to meet dynamic business needs. The loan facility will help to foster an enabling environment for the Agricultural sector, enhance national food security, and reduce the cost of credit in agricultural production and small and medium enterprise.
The facility include; Commercial Agriculture Credit Scheme (CACS),Real Sector Support Facility and Micro SME Development.
Agricultural business owner can be a beneficiary of the CACS N200 billion Fund. This facility was established by CBN and Federal Ministry of Agriculture is designed to fast track the development of the agricultural sector in Nigeria by giving loans support to businesses.
The loan interest rate is Single digit of (9% all-in, max) and the fund is available till 2025. Nigerians can also get Real Sector Support Facility if they are start-up business or a large enterprise in need of expansion, the 300bn intervention fund established by the Federal Government is available to help business grow. The Real Sector Support Facility scheme would terminate on December 31, 2030 with Long-tenured (up to 10 years).
Who Can Apply for Commercial Agriculture Credit Scheme (CACS)
1. Medium or Large Scale Commercial Farms involved in cultivation of crops, rearing of livestock, fisheries, etc.
2.Limited Liability Companies involved in agricultural production, storage, processing, marketing and enterprise development.
3. State Governments and the FCT (for on-lending/special intervention to small scale farmers).
4. Large Corporate (wholly owned by & Managed as Nigerian Private Ltd Liability Coy) with Min single obligor limit of N500m. this requirement for Real Sector Support Facility
To get the loan facility interested business owners should have the following documents:
1. Formal application for a credit Facility.
2. Certificate of Incorporation.
3. Memorandum and Article of Association.
4. Board Resolution to Borrow.
5. Feasibility Study/Business Plan.
Where to apply for the loan:
Visit any commercial bank in Nigeria that offer Micro Small and Medium Enterprises Development Fund,Real Sector Support Facility and Commercial Agriculture Credit Scheme (CACS).
Also you can visit any Agricultural Co-operative Societies by joining any All Farmers Association of Nigeria (AFAN);Youth Empowerment in the Agricultural Program (YEAP);