How To Access CBNs N50billion COVID19 Loan Intervention

Find out how households, MSMEs, Corportate bodies can access CBN’s COVID19 Intervention Loans.

Households, MSMEs and Corporate Entities.

After confirming your eligibility status for the intervention loan, you will need to submit an application to NIRSAL Microfinance Bank.

Your application must contain the following:

  • BVN Number
  • Business Registration
  • Business Plan showing the opportunities or negative effects due to COVID-19.

Upon receiving this, the NMFB shall conduct a due diligence which will render your application due for final approval by the CBN upon satisfactory appraisal.

The CBN will then review your application and give final approvals for distribution of funds.

Applicants must act with prudence by providing all supporting documents listed above.

Other key things to note:

Loan Limit

The criteria used to determine fund availability are:

For MSMEs– The loan amount shall be determined based on the activity, cash flow and industry/segment size of beneficiary subject to a maximum of N25 million for SMEs

For Households– A maximum of N3million is readily available. Working capital shall be a maximum of 25% of the average of the previous 3 years’ annual turnover. But where the enterprise is not up to 3 years in operation, 25% of the previous year’s turnover will suffice.

Interest Rate

The CBN has stated that the interest rate will be 5%/annum up until February 2021 after which it will revert to 9%/annum.

Loan Tenor

The guideline states that the loan for working capital shall be for a maximum of one year, with no option for rollover. As for the term loan, a maximum tenor of not more than 3 years with, at least, one-year moratorium.

Collateral Requirement

The collateral to be pledged by beneficiaries include:

  • Moveable asset(s) that is duly registered on the National Collateral Registry (NCR);
  • Simple deposit of title documents, in perfect state
  • Irrevocable domiciliation of proceeds;
  • Two acceptable guarantors and
  • Personal Guarantee of the promoter of the business
  • Life insurance of the Key Man, with NMFB noted as the First Loss Payee
  • Comprehensive insurance over the asset

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