I want to access the Central Bank of Nigeria (CBN) Micro, Small and Medium Enterprises (MSME) Fund? What are the requirements?
David Ajuya, Benin City
The N220 billion Micro, Small and Medium Enterprises (MSME) Fund, created by the Central Bank of Nigeria (CBN), aims to enhance access of MSMEs to financial services; increase productivity and output of microenterprises; provide employment; create wealth; and engender inclusive growth.
To access the Fund, you are required to meet the following requirements:
- Your business must be based on, or related to, agriculture, manufacturing, cottage industries, artisanship, services, trade and general commerce, and renewable energy/energy efficient products and technologies; or any other income generating projects that may be prescribed by the Central Bank of Nigeria.
- Your loan requirement must be N500,000.00 or lower (if you are a micro-business) or not more than N50 million (if you operate a Small or Medium Enterprise (SME).
- You will submit your loan application through a microfinance bank, commercial bank, co-operative, finance company or a development finance institution (like Bank of Industry or Bank of Agriculture).
- You will be charged an all-in interest rate not higher than 9.0 percent per annum (charges inclusive).
- You are expected to repay the loan within 12 months (if you operate a micro business) or not longer than three years (if you run a small or medium enterprise).
In applying for the Fund, some of the documents you will be required to submit are:
- Letter of Request.
- Statement of Accounts for two-three years.
- A Business Plan.
- Projected Cash Flow Analysis.
- Management and Audited Accounts.
- Evidence of collateral to secure the credit.