The Central Bank of Nigeria, in partnership with NIRSAL, created the non-interest lending facility. This loan provides a unique chance for those who meet the conditions to obtain funding without the constraints of traditional interest-based loans. It is intended to help and empower Nigerian households, as well as Agriculture Gradual and Small Business Enterprise Scheme [AGSMEIS] and Micro, Small, and Medium Enterprises [MSMEs].
What Is CBN Non-Interest Loan?
The CBN Non-interest loans, often known as interest-free loans, provide a financial solution that is free of interest charges. Unlike regular loans, they are only concerned with repaying the debt. Interest-free loans became popular because they aligned with ethical, religious, or personal views. In this post, we’ll look at what they are, how they work, and how they might help borrowers.
List Of CBN-Non-Interest Loans
1. CBN Non-Interest Accelerated Agricultural Development Scheme (AADS Loan)
According to the CBN, the goal of the Accelerated Agricultural Development Scheme (AADS) scheme is to engage a minimum of 370,000 youths in agricultural production across the country over the next three years in order to reduce youth unemployment and increase agricultural production for food security, job creation, and economic diversification. The beneficiary must be a Nigerian teenager aged 18 to 35 years old and must sign a commitment to adhere by the Scheme’s conditions of agreement.
2. CBN AGSMEIS Loan For SME’s And Agricultural Businesses Without Collateral
As a financing initiative to promote the agricultural business, the Federal Government of Nigeria established the Non-Interest Agri-Business, Small and Medium Enterprise Investment Scheme, abbreviated as AGSMEIS-NI. The program’s goal is to provide financial help to small and medium-sized agricultural firms, which will lead to economic growth and job creation.
The central bank, CBN, is in charge of overseeing the administration of the funding scheme and awarding monies to approved enterprises.
AGSMEIS-NI is a critical project that has the potential to boost Nigeria’s agriculture business. By offering financial assistance to small and medium-sized agricultural businesses, the project aims to achieve food security, increase production, and improve farmer lifestyles.
The program is open to competent individuals from across the country, including women and youth. Businesses that do not qualify for traditional bank loans can benefit from the program’s non-interest lending structure. In addition to the well-known AGSMEIS grant scheme, businesses can seek funding through a variety of sources. One potential is the availability of non-floral commodities that adhere to Islamic financial transaction regulations.
These solutions provide a separate set of features, such as Murabaha and Ijarah, each designed to meet the specific financial and growth requirements of businesses. These non-floral products demonstrate that there are several financial options that are consistent with Islamic beliefs and encourage the growth and profitability of businesses, from acquiring raw materials and equipment to obtaining operating capital.
AGSMEIS-N has a financial cap of N10,000,000.00 and a duration of 7 years.
Tenor (as determined by the project’s requirements). It is important to note that you will be entitled to an additional six-month moratorium as a qualified candidate.
3. CBN Micro, Small And Medium Enterprises Development Fund [MSMEDF Loan]
After noting the massive financing gap impeding MSMEs’ development, the Central Bank of Nigeria (CBN) established the Micro, Small and Medium Enterprises Development Fund as part of its developmental role and mandate to promote a strong financial system.
Eligible Businesses firms to be supported under the Scheme:
- Agricultural value chain
- Cottage Industries
- Artisans
- Services
- Renewable energy/energy efficient product and technologies
- Trade and general commerce
4. Household / SMEs—Non-Interest Targeted Credit Facility (TCF-NI)
The TCF, or Non-Interest Targeted Credit Facility, gives a ray of light to Nigerian individuals and businesses, particularly Micro, Small and Medium Enterprises (MSME), who have been severely impacted by the COVID-19 pandemic.
These awards are meant to assist households that are still experiencing financial difficulties, as well as to provide enterprises with the much-needed finance they require to get back on their feet. TCF has piqued your interest. Great! The loan includes a principle of 2.5 million NGN and a repayment duration of three years. A 6-month payment moratorium also provides you with some breathing room.
How To Apply For CBN Interest-Free Loan
If you meet the qualification requirements for any of these loan opportunities and you want to apply, here’s a step-by-step guide on how to apply for the CBN non-interest loan.
How To Apply For CBN Non-Interest Loan For Households And SMEs
- To begin, please visit the official website of NIRSAL microfinance bank on www.nmfb.com.ng.
- After that, click the “Apply for Non-Interest Facility” button. After tapping it, you will be given these two possible options: “Non-Interest TCF” and “Non-Interest AGSMEIS.” Upon seeing the options, you can choose the “Non-Interest TCF.”
- When you select the Non-Interest TCF tab, you will be presented with two options: the domestic facility and the SME facility. Choose the one that best meets your requirements.
- After that, you can begin the registration procedure properly. You will be questioned if you are returning to a previous application or are a new candidate.
- You will be questioned if you are returning to a previous application or are a new candidate.
- Â Select “New Applicant” If this is your first time applying,
- Following that, input your BVN. This will produce some of your information automatically. Fill in the required blank fields with your other information.
Note: If your company is registered with CAC, you can use the SME facility. You only need the CAC registration information and the TIN number of your company.
5. CBN Creative Industry Financing Initiative Loan
The Central Bank of Nigeria (CBN) devised a Creative Industry Financing Initiative (CIFI), also known as a Creative Industry loan, in partnership with the Bankers’ Committee to stimulate employment creation in Nigeria, particularly among young people, who are the most engaged in the creative industry. According to the CBN, the goal is to provide access to long-term, low-cost finance for Nigerian creative and information technology (IT) sub-sectors.
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