As Nigerians continue to grapple with economic hardship, many are looking for where to obtain a loan for personal use and to also grow their small businesses. However, they are being held back from making the move to apply for loans because of the consistent hike in interest rates by the Central Bank of Nigeria (CBN). Also, the banks are playing hardball with granting loans because they are worried that borrowers may not be able to repay the loans due to the economic hardship in the country.
While it is heartbreaking that Nigerians are afraid of applying and banks aren’t open to granting loans because of varying fears, I can assure you that all hope is not lost because the government has made provisions for Nigerians to apply for and obtain non-interest loans directly from the government.
If you are looking for a place to take a loan without the burden of paying interest on it, this post is for you. In this article, you will find a list of federal government non-interest loans that you can apply for. Interestingly, you will not be required to present bulky paperwork that banks usually ask loan applicants to bring for documentation. The requirements to qualify for the FG non-interest loans are very simple, and I will list out the requirements for each of the loans in this article.
What is a non-interest loan?
In simple terms, a non-interest loan is the type of loan in which the borrower is not obligated to pay any interest on the amount collected. For instance, if you collect N1, 000, 000 (one million naira) in non-interest loans, you will only pay the exact amount when the loan is due for repayment. It is as simple as that.
List Of FG Non-Interest Loans
As I promised I would do, here is the list of FG’s non-interest loans to apply for. I have also attached links to the application portal for each of the loans so that it will be easy for you to apply.
1. BOI Rapid Loan
The Bank of Industry (BOI) recently launched Rapid Loan as part of the President Bola Tinubu Renewed Hope credit programs that are aimed at providing access to funding to small businesses that create jobs for Nigerians to get employed.
Aside from the loans, beneficiaries will also receive business advisory services and assistance to help them succeed in the immediate and grow in the long term.
Who Can Apply
Enterprises and cooperative societies that are registered and do business in rural or economically disadvantaged areas of Nigeria are eligible to apply.
Criteria For Qualification:
- Completed Application Form
- Business Plan
- BVN and NIN
- Proof of Residential Address
- Completed Guarantor Forms
Click here to apply for this loan.
2. NELFUND Student Loan
The Nigerian Education Loan Fund (NELFUND) officially launched the student loan application portal on May 24, 2024, indicating President Bola Ahmed Tinubu’s dedication to providing accessible and inclusive education for all Nigerian students.
As a Nigerian undergraduate, this is a great opportunity for you to achieve your dream of becoming a graduate without the need to worry about how you are going to pay your school fees.
Who Can Apply
All undergraduate students in federal and state government-owned tertiary institutions, which include universities, polytechnics, and colleges of education.
How To Apply
The first phase of the application for the student loan is currently ongoing. To apply, visit the student loan official application portal.
3. Nigeria Consumer Credit Scheme
The Nigeria Consumer Credit Scheme is another wonderful initiative of President Bola Tinubu’s Renewed Hope administration.  The scheme, established in partnership with financial institutions and cooperatives across Nigeria, aims to expand the availability of consumer credit to all hardworking Nigerians to give them the opportunity to grow in society.
The first beneficiaries of the credit scheme would be civil servants, followed by the general public.
How To Apply
Click here if you are interested in applying for the Nigerian credit scheme.
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