By Shaibu Stephen Ojate
The apex bank of Nigeria for decades usually comes with initiative aimed at enhancing the financial condition of people. From regime to regime this type of fund intervention programme had come with different names and format.
Recall that under Jonathan’s administration, there was this same scheme and it was called Sure-P then. The Sure-P was an anchor borrowing scheme where individuals were given opportunity to access fund from the Central Bank of Nigeria and indeed amount to the turn of N10million was disbursed to people then. The snag under this loan scheme under Jonathan’s administration was that everything was ridden with high corruption and this accounts to why it could not the required popularity it was suppose to have.
With the coming of President Buhari’s administration, the file of SURE-P was later revisited and the deficiency inherent in the latter was improved upon most especially in the selection process and the disbursement of fund. The resurgence of Covid19 pandemic in the country further heightened the Anchor borrow scheme of the central Bank of Nigeria in her bid to ameliorate the suffering of the people as it was observed that many businesses cripple down due to lack of movement and restriction of some business activities.
Few months into the Covid19 pandemic, the central Bank of Nigeria initially commenced fund intervention tagged COVID19 palliative scheme for household and entrepreneur of which the writer of this article happened to be one of the lucky people who got the fund from federal government. The Central Bank of Nigeria in their quest to continue with the programme recently came with another programme termed AGMEIS which is still open to the public as at the time of writing this article.
The present loan facility from central bank of Nigeria to private and corporate entity comes under different categories N500, 000 for household, N750,000 for SME and N3million. The N3million loan facility is tagged ‘’ Agriculture Business medium and small scale entrepreneur investment scheme while N500,000 and N750,000 is called Non-interest loan. This current loan facility is a derivative and pattern of Islamic banking system where Central Bank of Nigeria through Nirsal Micro Finance Bank helps to finance and fund any business idea of individuals.
For better understanding of my reader, take for example if you an individual intends having a business center in CITY A with 50 computer sets, photocopier, printers, pay for shop rent and others. Such person is expected to approach Central Bank of Nigeria through their designated Nirsal Micro finance bank and file in loan application.
The loan application process starts by undertaking in Nirsal micro finance bank entrepreneurship training to enable such person obtain the training code for loan application process which the cost is put at N10, 000. Upon completing this training program with 5days duration period, the investor would thereafter mandated to presents a Business plan detailing the location of the business premises, spotting out the marketing strategy and sale forecast for every year. The Business plan is expected also to outline the repayment schedule and length of payment. Payment for training registration, presentation of Business plan is therefore not necessary or needed if such person is going for N500,000 and N750,000 loan facility. All bureaucracies observed for the N3million loan are not need for the N500,000 and N750,000 loan.
It should be noted that irrespective of the category of the loan facility applied for, the central bank of Nigeria gives one year moratorium. The moratorium in this regard implies the length of period freely given to every applicant run your business without paying a dime which is presently put at 12months. Should one therefore get the approved fund today which is 11th November, 2021, then your loan interest repayment and principal amount will be commences 11th November, 2022.
What makes this loan scheme interesting is that applicants are not mandated to present any collateral security inform of assets like landed property as usually the case of loan offer from any commercial bank in Nigeria. Your BVN is what replace your collateral security in this regard.
Shaibu Stephen Ojate is a Journalist and public affairs commentator writes from Kubwa in Abuja. He writes purposely to correct wrong notion about CBN loan and to educate those who are ignorant of the loan facility as Kogi State and Kogi central people in particular have been observed to be lagging behind in the loan facility. Please, help me share to other numerous social media platforms. I am reachable via phone number 09056202714
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