FG Begins Loan Disbursement Process For MSME, Manufacturers (See How To Apply)

FG Begins Loan Disbursement Process For MSME, Manufacturers (See How To Apply)

The Bola Tinubu-led federal government has commenced the loan disbursement process for Micro, Small, and Medium Enterprises (MSME) and Manufacturing sectors. The Office of the Ministry of Industry, Trade, and Investment made this known in a statement on Monday in Abuja, the nation’s capital…….READ ALSO Gov Ododo Seeks FG Assistance For Insecurity And Flooding In Kogi

The ministry stated that the initiative aims to boost economic growth and industrial development, with N75 billion allocated to support MSMEs and another N75 billion to the manufacturing sector.

On April 16, the federal government commenced the disbursement process for the presidential conditional grant scheme to verified applicants, which was launched by President Bola Tinubu on October 17, 2023, to cushion the effects of economic shocks.

The statement read: “The Federal Government of Nigeria is proud to announce the operational launch of the MSME and Manufacturing segment under the prestigious Presidential 200 Billion Naira Intervention Fund.

“With applications for the Presidential Conditional Grant Scheme now closed, we are excited to move forward with the loan disbursement process for the MSME and Manufacturing sectors, aimed at boosting economic growth and industrial development. This fund is strategically divided, dedicating 75 Billion Naira to MSMEs and another 75 Billion to the manufacturing sector.

“We are pleased to report that the initial disbursement to nano businesses has been met with success, and we are well on our way to supporting 1 million nano businesses throughout the country. Thousands of beneficiaries have already confirmed receipt with many more to come.

“We invite eligible enterprises to join this transformative initiative. To apply, please visit our official application portal at www.fedgrantandloan.gov.ng. Additionally, applicants seeking more detailed information should visit their local state Bank of Industry branch.”

How To Apply

• Eligible enterprises should visit the ministry’s official application portal at www.fedgrantandloan.gov.ng.
• Applicants seeking more detailed information should visit their local state Bank of Industry branch.

Criteria For MSME Loans Up To N1 Million

Eligibility Criteria:

• Must be an existing business in operation for at least one year, or a registered start-up.
• Provide CAC business registration documents.
• Present the company’s bank statement for existing businesses or the chief promoter’s bank statement for start-ups.
• Fulfill the required monthly turnover and comply with other requirements as specified by the bank.
• Provide a personal guarantee of the promoter.
• Agree to bank verification number (BVN) covenant.
• Adhere to global standing instruction (GSI) and other securities as required by the bank.

Repayment Frequency:

• Monthly equal instalments with no moratorium, spanning a 3-year term.

Criteria For Manufacturers’ Loans Up To N1 Billion

• Choose between working capital or asset financing.
• Maintain at least a 6-month business/corporate banking relationship.
• Provide additional documentation as required by the bank.
• Asset financing comes with a 5-year repayment period, and working capital financing includes a 6-month moratorium on principal and interest, followed by a 12-month equal installment repayment plan.

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