Can AGSMEIS Loan from CBN help in boasting overall output in Nigeria GDP?
Of recent time the central Bank of Nigeria has been known in providing numerous support to Nigeria economy through advisory roles, monetary policy and supporting government intervention to drive growth in the economy.
It’s no news that Nigerian just existed its second recession that almost crippled the economy, made millions of Nigeria found themselves in the street with no job. Today in this article we shall discuss the role AGSMEIS has to play the Nigerian economy.
Whats AGSMEIS all about?
AGSMEIS stands for Agric Small and Medium Enterprise Scheme, it is an innovative scheme supported by the government but considered as the brainchild of the central Bank of Nigeria CBN.
Just like we pointed out the AGSMEIS is mainly for farmers with sole aim of helping them increase their output and by extension make Nigerian to be Food self-sufficiency.
As a farmer, business owners, there is every chances that you can be able to access up to N10M at 5% per annum from the central Bank of Nigeria via AGSMEIS.
To start your application, you should have a business plan already written down that best describes your business, how it is being run, targeted market, potential market, sources of finance etc.
What are the core objectives of AGSMEIS?
Here are some core objectives of the Agric Small and Medium Enterprise Scheme are :
- Responding fast to Small and Medium Enterprises (SMEs) that are the live wire of the economy and ensuring that they have access to funds to keep their business going.
- Nigeria as a country is plague with millions of unemployed youth who are just lying idle, boasting SMEs will go a long way to create jobs that will absorb some of the unemployed.
- Assist farms Nigeria to sustain good agricultural practices.
Is there any interest rate AGSMEIS Loan?
AGSMEIS Loan is not a free grant, its a loan but it comes with a low interest rate. For example you are able to get a loan of about A million naira,you will be paying back the one million naira and a little 5% interest which is 50 thousand naira.
You can see that from the calculation we did, you won’t be under pressure to pay what most commercial bank would have asked you to pay and interestingly your payment is only done once in a year.
Who are Eligibility for AGSMEIS Loan?
Although in this article we shall center more on how agriculture sector of the economy will benefit from this loan but on the other hand its still necessary we throw more light in the category of businesses this loan are meant for:
Agricultural businesses,Education,Health,Services (Hospitality, Restaurants, Catering,Services, etc),ICT,Manufacturing/Production,
Mining,Creative Industry (Fashion,Design, Crafts, Entertainment, etc),
Condition that must be fulfilled before getting AGSMEIS Loan:
- You need to first undergo a training that is powered by Entrepreneur Development Institute (EDI).
- When applying, you should apply through Entrepreneur Development Institute (EDI).
- Entrepreneur Development Institute (EDI) are going to send your application form to the central Bank of Nigeria.
- The CBN will communicate back to you through Entrepreneur Development Institute (EDI) and organise a n interview and you will come for the interview in person.
Requirements for CBN Loan Approval of Application and Disbursement of Funds.
Before your business will be approved there are certain conditions and special requirements you will present. The documents are as follows:
- Your business must be Registered with CAC
- You should be consistent in paying of tax
- Letter of Introduction from you
- Letter of Guaranty is necessary
- Certification by an EDI a must
- Passport photo of you and guarantor necessary
- Valid ID card
List of CBN Approved Entrepreneurial Development Centers (EDC) in Nigeria
CBN EDC Centres are located all over the geopolitical zones in Nigeria. The centers has been structured in way to provide training materials, physical structures,human resources , equipments with the main objectives of meeting international best practices and standards and also meet the needs of MSMEs in Nigeria.
CBN EDC has been charged to help tackle the increasing number of of unemployed Nigerians, encourage entrepreneurship among Nigerians, economic prosperity, poverty eradication etc.
CBN Entrepreneurship Development Centres (CBN EDCs objective is as follows:
To help encourage entrepreneurship, make it acceptable by all Nigerians and by extension provide training that will best equipped those who want to start up their own business.
Provision of skills that is helpful in not only starting a business venture but also expanding the business and lastly getting them introduced to finance institutions that will be of help to them.
To help with policies that will help in job creation, see many businesses expand and become major players in wealth and job creation.
List of CBN EDC Centres in Nigeria.
You can get their office @ Old SDSTC (Oyo Oodua Skill Acquisition Centre Premises),oyo, Ibadan (South West).
30 Trans-Woji road, Grace plaza, Rivers State, South South.
For those in South East : Old Informatics Institute, Njimtillo, Borno State. North East.
For those in Northern Nigeria here is the address nearer to you ;Northwest region is in Murtala Muhammed Library Complex, kano state.
North Central is in Off Jonah Jang Crescent, Benue State.
South East is in Ebenezer Villa Suite
8, Ogenyi Close, Off Cornerstone Avenue. Enugu.