Central Bank of Nigeria recently decided to offer loans to the eligible establishment; this announcement was made to interest the stakeholders who can meet up with their stipulated criteria to able to get access to the N50 billion Naira intervention loans for small and medium scale enterprises.
The N50 bn introduction made by CBN helps in checking the negative effect of the COVID-19 pandemic brought to the labor market, which is meant to support households and Micro, Small, and Medium Enterprises affected by the COVID-19 pandemic.
To be eligible for this loan, it is stated that
“Eligible households or MSMEs shall apply directly to NIRSAL Micro Finance Bank; the application must contain your BVN number, Business registration, and Business plan clarifying the adverse impact as a result of COVID-19 pandemic.”
“NMFB shall conduct and appraise due diligence application; upon a satisfactory appraisal of application, NMFB shall forward the application to CBN for final approval, and CBN shall review the applications and then gives final approval for disbursement to NMFB.”
“The loan amount will be determined by the activities, cash flow of the industry and segment size of the beneficiary which is subjected to N25m for SMEs; also households could access a maximum of N3m.”
The Bank also stated that eligible participants must be households and existing enterprises that its activities were affected as a result of COVID-19 pandemic
Here are also activities covered under the guidelines
- Health (medical supplies and pharmaceuticals)
- Agricultural value chain activities
- Hospitality (food services and accommodation)
- Airline providers
- Trading and value addition/manufactured
The eligible participating financial institution for the scheme is NIRSAL Microfinance Bank. And the Bank responsible for issuing the loan is the NIRSAL Microfinance Bank, which will accept the collateral provided for the loan.