Loan by FG for MSMEs – Begins

Get ₦1,000,000 Loan by FG for MSMEs – Begins

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Discover the pathway to access the one million naira presidential palliative loan program, a collaborative initiative involving the federal government, State Governments, Honourable Ministers, NASME (Nigerian Association of Small and Medium Enterprises), Senators, and House of Representatives Members.

Considered a game-changer in economic empowerment, this loan scheme entails the disbursement of 75 billion to MSMEs, providing up to one million naira for each beneficiary.

The loan terms include a three-year repayment period for MSMEs, a one-year repayment period for working capital, and a one-year repayment period for the purchase of machinery and equipment. This strategic financial opportunity aims to empower businesses and stimulate economic growth.

Who is Eligible to Apply for this Loan?

Below are the businesses that are eligible to apply for the loan scheme:

  1. Traders
  2. Food Services
  3. ICT
  4. Transportation
  5. Creative
  6. Artisans

Loan Eligibility Criteria

  • Loan up to 1M
    • A) Eligibility Criteria
      • Existing business must be in operation for one (1) year,
      • Start-ups must be a registered business
      • Provide CAC business registration documents.
      • Company’s Bank Statement(s) for a period of one (1) year (for existing business)/ Chief Promoter’s  (Director or Business owner) Bank Statement(s) for a period of one (1) year (for startups).
      • Have required monthly turnover and other things as may be requested by the bank.
    • B) Security
      • Personal Guarantee of the promoter
      • Acceptance of BVN Covenant (Global Standing Instruction- GSI), and any other thing that may be required by the bank
    • C) Repayment Frequency
      • Monthly equal installment (no moratorium) over a period of 3 years

Check Out: How to Apply for FG’s Student Loan

2. Manufacturers up to N1billion (Working Capital or Asset Financing)

  • A) Eligibility Criteria
    • At least 6months of business/ corporate banking relationship
    • Provide CAC business registration documents
    • 12 months’ bank statements for other bank
    • Other documentations that may be required by the bank.
  • B) Security
    • As may be required by the bank
  • C) Repayment term:
    • i) Asset Financing
      • 6 Months moratorium on principal and interest, 5 years repayment period for asset financing only
    • ii) Working Capital Financing
      • 12months equal installment of principal and interest

Navigating the Application Process for the ₦1,000,000 FG Loan for MSMEs

The process to apply for the ₦1,000,000 FG Loan for MSMEs is now in progress. If you have carefully reviewed the outlined requirements and find yourself eligible, you are poised to apply for this substantial loan amount. Take the initiative to start your application, anticipating a prompt disbursement of funds.

To commence your application, kindly click on the provided link for detailed information and guidance.

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