Business Loans

The nature in which financial institutions now give out loans is such that it guarantees them that the lender can payback. Over time, they developed a credit rating system to benefit the faithful lenders and in some way, keep the stubborn ones on their feet. Today, practically every organization and individual has a credit score, which plays a very huge role in the amount and kinds of loans they can access. Also, there are numerous factors that may affect your score. This article discusses everything about credit request and how it affects your credit score.

What is a credit request?

A credit request or credit application is simply a request for credit. Furthermore, although it was usually done in written form or orally, it is now completely digitized due to advancement in technology. Credit request is simply an application for a loan by a lender to a borrower. Also, it comes with legal information that contains information relating to the credit terms and conditions and other applicable fees.

Does requesting a credit report hurt your credit?

Contrary to popular belief, filing a credit request actually affects your score indirectly. Furthermore, this happens especially if the lender does a deep or hard inquiry into your credit history. Now, the downside to going through a hard inquiry is that it could destabilize your credit score, causing it to fluctuate slightly. The hard inquiry is always done by pulling your details from the accreted bureau in your region of operation.

However, the good thing about the situation is that it can only cause your score to drop by a few points, that’s if it causes it to drop at all. After this, you can quickly work to get your score back to what it was as long as you understand the rating mechanism.

What affects your credit score?

The factors that affect your credit score are:

1. Payment history: 

Arguably the most important of the factors, your payment history plays a major role in determining your credit score. In reality, it simply consists of a track record of how you have repaid your debt over the years. Therefore, lenders use it as an indication of how likely you are to repay in the future. They want to be sure that you would return their money, therefore the better your history, the better your credit score.

2. Amount owed: 

This is estimated as your credit utilization ratio and calculated by dividing your current total revolving credit by your overall total revolving credit limit. Therefore, it estimates how reliant you are on non-cash funds, by showing how much of your available credit you currently use.

3. Credit history length: 

This basically looks at how long you have held your oldest credit account and the age of your newest. With this, it then estimates the average of all your accounts, and the longer your credit history, the higher your score.

4. Credit mix: 

Credit mix was put in place to check your diverse portfolio of credit accounts. This is because people with the best credit score often diversify their portfolio. Therefore, credit mix checks all your accounts as a prediction of how well you can manage a wide range of credit products.

5. New credit: 

This includes your recently opened credit account, as well as the amount of hard inquires that landers made the time you apply. Furthermore, the higher the requests and accounts, the higher the tendency of lenders seeing you as a risk. Ultimately, this reduces your credit score.

Conclusion

Placing a credit request does not affect your score to a varying degree, and if it does, it’s easy to recover. However, repetitive failed credit requests would affect you in the long run. Therefore, before placing a request, analyze your chances of success to see whether or not it is worth it. 

Credit facilities are a variation of loan that is mostly used in the business and corporate world. Basically, a credit facility allows a business to borrow money (called loan) over a long period instead of coming back for a fresh loan when it needs another cash inflow.

Credit facilities are the alternative ways to get corporate loans, as it helps companies achieve their goals much faster and saving them the stress of reapplication.

What are Credit Facilities?

Putting it in context, we can describe credit facilities as an umbrella loan, giving access to corporate organizations to draw out more money than it has, to meet its needs.

This way, the company does not have to directly apply for a loan, saving time and rigours. Eventually, the company would be required to repay the loan, along with interest only on the extra amount withdrawn. All parties would have agreed on an interest rate beforehand.

What is The Applicable Interest Rate of Credit Facilities?

The interest rate applied to a credit facility depends on one major important factor, which is the borrower’s credit score or rating. The better your credit score, the lesser your interest rate would be since they believe you have a good financial history.

On the flip side, a poor rating would certainly attract a high-interest rate, indirectly ensuring that you pay back your loan in time.

Types of Credit Facilities?

1. Short term credit facilities 

Short term credit facilities are designed to only last for a while, and can be further divided into the following:

• Cash credit and overdraft: This type of short term credit facility allows you to withdraw more than the fund present in your deposit account. However, you would also pay interest on the amount you overdrew.

• Short term loans: Short term loans offer corporations a working capital to meet immediate needs. Also, it usually has a tenor of 1 year and is not very secure in nature, depending on the rating of the borrower.

• Trade finance: Trade finance is a type of short term credit facility that is generally essential to the efficient cash flow of a company. It could come in different forms including supplier’s credit, export credit, letters of credit, and factoring.

2. Long term credit facilities 

They design long-term credit facilities to appeal to corporations looking at obtaining long-term loans. The different types include:

• Bank loans: This is a very common long term credit facility that comes with a definite tenor and repayment schedule. Also, banks thoroughly access lenders before giving out a loan to address their credit risk. The lower the better, and a higher chance of you getting loan approval from the bank. You can read more on how you can get a bank loan without collateral in Nigeria.

• Notes: This is an unsecured credit facility that is mostly raised from private or capital market. Therefore, it is usually only considered when banks are not willing or have reached their lending limit.

• Mezzanine debt: This credit facility is only provided by private equity and hedge funds. It is formed as a blend between debt and equity and is completely unsecured. Also, it has a tenor of about 5 to 7 years.

Other types of long-term credit facilities are Securitization and bridge loans.

Conclusion

Credit facilities are important for our everyday business life, as well as the survival and expansion of corporations. Also, most of these credit facilities are practised today, and as long as you have a good credit score, you can easily access one.

As recently as 2019, agriculture alone contributed around 21% of Nigeria’s GDP, stating its rising importance to the country. Lately, the Nigerian Government has invested so much financial resources to this sector, supplying the necessary tools for use. In reality, they do this in a bid to further diversify the nation’s income dependence. Today, there are several government programmes for Agric loans in Nigeria, through which farmers can benefit from. These loans as well as how you can apply for them are discussed in this article.

What are the available Government programmes for Agric loans in Nigeria?

The federal government of Nigeria always make loans available through its financial parastatals in the nation. Therefore, for government programmes for agric loans in Nigeria, the major platform is CBN. The Central Bank of Nigeria currently offers the following government programmes for agric loans in Nigeria:

Nirsal agricultural loan (AGSMEIS): 

Nirsal microfinance bank is a financial institution with license from the Central Bank of Nigeria to offer loans on their behalf. Recently, Nirsal has handled a major portion of loans offered by the government, especially the agricultural loan or AGSMEIS.  In addition, although AGSMEIS caters to the needs of several industries, it focuses especially on agriculture.

How do I apply for Nirsal agricultural loan?

Simply follow the process below to apply for the loan:

• Firstly, you are required to attend a compulsory training, after which you would receive a CBN certified Entrepreneurship Development Center (EDC).
• The training institute (EDI) would train and inform you of all the necessary documents that you need to secure the loan
• If successful, they pay the loan into your account
• The institute helps you implement your business idea and provides commercial support services
• In addition, they would help you in selling your products on the market, to pay back the loan. Also, they help monitor sales and profit to maximize earnings and enable loan repayment.

Agricultural credit guarantee scheme fund (ACGSF): 

this loan is handled directly by the apex bank (CBN). Also, it was established by the Decree of 20 of 1997 and has been in operation since 1978. Therefore, this makes it one of the oldest agricultural schemes in the country.

How do I apply?

To apply for the agricultural credit guarantee scheme fund, you can visit a branch of any of the operating banks. On arrival, an agent would put you through the process, as well as provide adequate forms that they would require you to fill.   

Agricultural Credit Support System (ACSS): 

this is an initiative of the government programs for agric loans. Therefore, the Central Bank of Nigeria manages the funds, which has a total prescribed value of N50 billion. In addition, they designed this program to reduce inflation, generate foods to be exported, and increase foreign and revenue. Also, only practising farmers and agro-allied entrepreneurs can access this loan.

How do I apply:  

According to the information released by CBN, applicants are to approach their respective bank on benefit from the loan. However, the implementation guidelines have not been given at the time of this writing.

Commercial Agriculture Credit Scheme (CACS): 

this scheme is as a result of the collaboration between the Federal Ministry of Water Resources and CBN. Furthermore, they established it in 2009 to finance the agricultural value chain of the country. This was in a bid to combat the rising inflation through increased production in the country. Also, the Debt Management Office raised a N200 billion Bond to finance this loan.

How can I apply?

There is a long list of eligibility requirement and application procedure if you want to benefit from CACS. Follow this link to visit CBN’s official release of the procedure: https://www.cbn.gov.ng/Out/2014/DFD/CACS%20GUIDELINES%20NEW-14th%20May%202014.pdf

Conclusion

The government currently runs several loan programs to help support farmers in Nigeria. Also, as long as you meet the eligibility requirement, you can easily benefit from these loans. Start by contacting your bank’s agent today.

Many Nigerian students currently harbor the intention to go out of the country for educational purposes. There is a certain panache attached to completing your undergraduate or postgraduate degree abroad. Also, it gives an obvious higher standard of education that gives you an edge over those with Nigerian university degrees. In all, you get the benefit of better education, standard of living and more advanced career opportunities as the Nigerian unemployment rate is very high. However, actualizing this goal cost a lot, and mostly requires loans to study abroad in Nigeria. This article contains how and where you can apply for such a loan.

 

Who is the major provider of Loans to study abroad in Nigeria?

The first thing you should know about obtaining loans to study abroad in Nigeria is that these loans are mostly funded by foreign bodies. Also, there are only a hand full of government full-time scholarships for sending indigenes abroad. In essence, you are either left with one of the two options:

• Apply for global scholarships directly, or
• Make use of the indigenous education advisory service

With global scholarships, they leave you to fend for yourself and apply directly to international scholarship bodies around the world. However, on the other hand, you can go through the indigenous education Advisory Service that makes the process a lot easier.

What is the education advisory service?

The education advisory service (EAS) is a unique institution that helps Nigerians access the benefit of international education loans. Furthermore, they provide counselling, technical support, admission processing, and enrollment managed supports for individuals. The enrolment managed support includes flights, accommodation, and airport temporary accommodation to qualified students. In essence, EAS is a very reliable institution, formed by the joint corporation between MOD Group and First City Monument Bank (FCMB).

What loans to study abroad in Nigeria does EAS offer?

If successful, EAS loans usually cover your tuition fees, living expenses, and caters to other needs that might arise while you study abroad. Also, successful applicants get the money donated directly to the school’s account on their behalf. However, there are several available loans that feature on EAS platform, as they act as a middleman rather than provide the loan themselves.

What are the additional benefits of education advisory service?   

Currently, obtaining a scholarship through EAS comes with the following benefits:

1. Discounted travel fares: this discount covers major airlines including Delta, Etihad, Virgin Atlantic, and Lufthansa.
2. Complementary money card of your choice from either MasterCard or Visa
3. Educational loan support of up to $25,000 school fees
4. Fair deposit rates, as well as zero banking charge on transfers you make for school fees payment.

What are the EAS eligible countries for loans to study abroad in Nigeria?

If you are applying directly, you have the option to pretty much apply to any school around the world. In reality, this is because most of these applications can be done online. However, if you choose to apply through EAS, your options become limited to the following countries:

• United Kingdom
• United States of America
• Canada
• Ireland
• Australia

Also, EAS is available to all members of the public with an account in FCMB. You can reach out for more information by visiting any of their official outlets. In addition, it is available through any of MOD group educational offices.

How can I contact EAS to apply for loans to study abroad in Nigeria?

You can contact them by following this link to see all their available official branches: https://modeducation.info/education-advisory-service-eas/. Also, explore their site for other profitable materials that would help you in your search for loans to study abroad in Nigeria.

Conclusion

The search for loans to study abroad is not nearly as tedious as going through the application process without missing a step. Therefore, it is why many recommend registering with an institution like EAS, as they provide all-round support for you. However, you can still choose to go indirectly, depending on your preference.

The economy of a country is largely controlled by government input and regulations, which ultimately determines the success of businesses. As a result, the Nigerian government has put in place several structures to help SMEs because of the fundamental role they play in the economy. Therefore, in this article, we would discuss federal government loan agencies in Nigeria. Furthermore, just as the name implies, these agencies provide loans and grants to businesses in need.

Federal Government loan agencies in Nigeria

The federal government loan agencies in Nigeria typically include the following:

Central bank of Nigeria (CBN) 

the central bank of Nigeria can be said to be the top of the pyramid for federal government loan agencies in Nigeria. In addition, through a number of other institutions, they provide loans for different businesses in different sectors of the economy. Some products and services previously or currently run by the CBN include:

• Anchor Borrower’s Programme (ABP)
• Commercial Agriculture Credit Scheme (CACS)
• Creative Industry Financing Initiative
• Credit Support Scheme For The Healthcare Sector
• Maize Aggregation Scheme (MAS)

Bank of Agriculture (BOA) 

it is not difficult figuring out their function considering their name. The bank of agriculture is essentially a government sponsored bank. In addition, its job is to provide credit along with other funding to agriculture related businesses, especially to farmers.

• Agro-Processing Facility
• Direct Credit Product
• Equipment Leasing Product (ELP)

Development Bank of Nigeria (DBN) 

this is another government run bank, and it can be regarded as a wholesale financial institution. Also, this bank has a goal to expand and provide access to loans for MSMEs in the country. In addition, some services offered by the bank are:

• Partial credit risk guarantees
• Capacity building (entrepreneurship training program)
• Wholesale lending

Nigerian Export-import Bank (NEXIM) 

the government specially established this bank to provide financial assistance for export related businesses. Furthermore, it ensures that businesses exporting goods and services from Nigeria have access to loans for proper functioning. Also, some of the NEXIM services include:

• Direct Lending Facility
• Foreign Input Facility
• Local Input Facility
• Nigerian Creative Arts and Entertainment Industry Loans
• Small and Medium Enterprise Export Facility (SMEEF)

Bank of Industry (BOI) 

This is like the opposite side of the coin to the Bank of Agriculture. In reality, the bank of Industry focuses on providing long-term loans to the industrial sector of the economy.  Also, its focus on sectors including information communication technology, solid industry, oil and gas, creative, agriculture, and agro-processing industry. Examples of the services offered by the Bank of Industry include:

• ASM Fund
• Bottom of Pyramid
• Fashion and Beauty Product
• Light Manufacturing
• Food and Agro Commodity Processing
• Graduate Entrepreneurship Fund
• Youth Entrepreneurship Support (Yes) Program

Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) 

if you are a small or medium sized business owner, the name SMEDAN would surely ring a bell. In reality, they are responsible for monitoring and coordinating the growth of MSMEs in Nigeria. Also, they help these businesses get access to loans and other funding. In conclusion, their services include the following:

• Automotive (Component Parts Fabrication) Empowerment Scheme
• Commercialization, Empowerment Initiative (for ICT)
• Conditional Grant Scheme (CGS)
• Enterprise Network Initiatives

How do I apply for a loan in these federal government loan agencies in Nigeria?  

Firstly, you should know that different federal government loan agencies in Nigeria, have different procedures for application. However, it is important that you start by researching the particular loan that you need. In addition, these loans agencies have different qualifications and application procedures that you need to know. In reality, a good way to start is by visiting their official website, which mostly contains the necessary information that you need.

Conclusion

The federal government loan agencies in Nigeria are one of the most important institutions in the country. Furthermore, they provide access to amazing loans, and overall support to businesses in need of it. In essence, you should look into these agencies as a business owner, to see how you can grow. 

While it might seem as though there are no banks offering no-interest loans in Nigeria, the fact is there are banks offering interest-free loans. Most of these banks operate under Islamic banking principles. An interest-free loan means that you will only be paying back the money you borrowed from the lending organization. In most cases, some of these loans require you to have a very strong credit record. This article covers all that you need to know about interest-free loans in Nigeria.

About Islamic Banking (No-Interest Banking)

Islamic banking, which is also called sharia-compliant finance, refers to banking activities that find their root in the laws of sharia. The main fundamental principles of this type of banking are the prohibition of interest collection from customers and sharing of profit and loss. Sharia frowns against any form of speculation or gambling. In addition to this, it also prohibits the collection of interest on loans. This condition makes Islamic Banking dent from the conventional Banking system.

Where can I get Interest-Free Loans in Nigeria?

Jaiz Bank:

Jaiz bank is a financial organization that operates and is compliant to Islamic banking principles. This bank is a public and national quoted organization with well above 26,000 shareholders. The goal of Jaiz Bank is to be the distinct leader in the areas of ethical Banking in the Sub-Saharan region.

Furthermore, as we expect of a bank operating under Islamic principles, Jaiz Bank offers Non-interest loans to its clients. These loan options are generally available to all and sundry at zero interest rate, but, definitely with a loan tenor. That is a repayment period. Some of these loan options are:

Murabaha ( Household Appliance)

The Household appliance loan is a consumer product loan. If you are looking to purchase some household essentials, this loan option got you covered. This could include a Television set, Refrigerator, laptop computer, etc. The repayment of this loan is for 24 months.

Project Financing:

If you have a big project but don’t have the capital strength to do it, Jaiz Bank got you covered. They will agree to complete the project for you and sell it to you at a cost-plus profit margin.

Other loan options available with Jaiz Bank include Lease to own and Working capital Financing. To learn more about Jaiz Bank and its loan offerings, kindly visit their official website on www.jaizbankplc.com.

TAJ Bank

TAJ Bank, just like Jaiz Bank, basically operates under the sharia financial principle. This means they do not give or receive interest. They operate 3 branches in Nigeria and also provide regular services, just like conventional banks. This includes ATM services, online and mobile transactions, etc. They have their head office in Abuja and a further branch in Kano. Some of their loan offerings include:

Cost Plus Working Capital (Murabaha):

They design this loan option to help you finance the purchase of raw materials and assets you desire. All you have to do is the source for the asset or raw material, once you do, they will pay the supplier of the asset. After this, TAJ bank expects you to repay at a date you both agree on a cost-plus profit basis.

Bonds and Guarantees: (Kafalah)

TAJ bank generally designed this loan option for organizations that need to give their trading partner or clients a guarantee.

Cost Plus SME Finance:

This finance product helps to meet the funding requirements of Small and medium-sized enterprises. If you fall into this category, then this loan option is for you. TAJ bank put people in this category into cooperative clusters and fund their capital needs.

Conclusion:

In Nigeria today, only banks operating under Islamic banking principles are the only ones offering no-interest loans. You can visit their official website to learn more about their loan offerings or visit any of their branches near you.

Businesses thrive on the availability of funding, which essentially provides the muscle to wrestle competitors and meet customer demands. However, these funds are not always available, as not every entrepreneur starts a business with bottomless pockets. As a result, knowing how to apply for a business loan in Nigeria is one of the most important parts of being a business personnel. In this regard, this article explores the procedures and eligibility requirements to successfully applying for a business loan in Nigeria.

How to apply for a business loan in Nigeria

Before applying for a business loan, it is necessary that you put together all the documents that you would need. The complete process on how to apply for a business loan in Nigeria simply includes:

Step 1 – Confirm your credit eligibility: 

many financial institutions determine who they would and wouldn’t offer loan based on creditworthiness. Therefore, your company’s credit worthiness goes a long way in determining the success of your loan application. Furthermore, you can access this value through the CRC Credit Bureau. It is called the Credit Information Report (CIR). Essentially, your CIR comprises your credit transaction history and tracks all your previous and current loans. Also, it shows your loan repayment pattern and a poor pattern usually means they would turn your loan request down.

Step 2 – Compile all relevant business documents:  

no financial institution offers loans without documentations. Rather, what varies is the documents they request. You can do yourself and business a lot of good by compiling all the possibly needed documents before proceeding to apply for the loan. In addition, the documents usually include the following:  

• Personal and business tax statement for 1 – 2 years.
• Bank account statement for the past year
• Proof of ownership or title documents for any asset owned.
• Business plan (especially if you are looking for funding for your business idea)
• CAC business registration documents, shareholders’ agreement document
• List of staff members on the payroll in the last year
• Document showing income statement in the last 2 years

Step 3 – Research adequate loan companies: 

The next step after determining your creditworthiness and gathering necessary documents is to research loan companies. Several loans institutions have different eligibility requirements and conditions that surround their loans. Therefore, the trick is in you discovering the best that suits your needs. Also, consult with professionals and experts in your field to get guidance. Don’t go in blind, rather, select the best type of loan for your need.

Step 4 – Proceed to application: 

The application process totally depends on the financial institution. Therefore, proceed to get the loan application form and fill it. Also, it is important that you read the loan agreement form carefully before signing. This agreement contains late payment penalties, breakdown on monthly payments, and hidden charges of the loan. In essence, you should do this to know when to seek legal counsel if unclear about clauses in the form. On submission, the institution then proceeds to carry out a credit check with the bureau.

Step 5 – Provide extra documentation: 

Adding extra documentation to your application always makes it look more credible. Essentially, it involves you writing something like a personal statement or business plan and submitting along with the loan application. Also, you can include other documents like your business model, financial statement and overall plan. This would increase your chances of securing the loan.

Conclusion

Loan application and disbursement procedures could take time, therefore, it may be wise to apply for a loan at a sufficient time before you actually need it. Also, there are numerous financial institutions that offer loans suitable for different needs. In the end, it’s all about finding the most favourable for your company.

The impact of COVID-19 extends across the world’s economy, with virtually no country spared. However, in Nigeria, the impact was so significant due to the fact that the economy comprises predominantly SMEs struggling for survival. This led to the government implementing a N50 Billion targeted credit facility to support Small businesses in the country. Also, asides the government, some private institutions also provided access to loans for individuals and businesses struggling to get back on their feet after the pandemic.

Who is eligible to apply for COVID-19 loans in Nigeria?

According to the minimum qualification, only those whose enterprise were adversely affected by Covid 19 with verifiable proof, qualifies for the loan. However, it also accommodates businesses with plans to take advantage of emerging opportunities resulting from the pandemic situation. Furthermore, the government COVID-19 loan scheme is to be financed from the Micro, Small and Medium Enterprises Development Fund (MSMEDF) account and covers the following:

1. Hospitality, which includes accommodation and food services
2. Health (pharmaceuticals and medical supplies)
3. Agricultural value chain activities
4. Airline service providers
5. Trading
6. Manufacturing and value addition
7. Other income-generating activities as stated by the Central Bank of Nigeria

Also, NIRSAL microfinance Bank disburses the covid 19 loan on behalf of the government, and all applications must go through them. In addition, some private commercial banks also offer loan services with relaxed requirements to individuals, to ease the pandemic effect. However, the loans are not as elaborate as their government counterparts.

What are the document required to apply for COVID-19 loans in Nigeria?

To become a beneficiary of this loan, you would need the following documentations:

1. Moveable asset(s) duly registered on the National Collateral Registry (NCR);
2. Deposit of title documents, in perfectible state;
3. Deed of Debenture (for stocks) in perfectible state;
4. Irrevocable domiciliation of proceeds;
5. Two (2) acceptable Guarantors;
6. Personal Guarantee of the promoter of the business;
7. Life Insurance of the Key-Man, with NMFB noted as the First Loss Payee; and
8. Comprehensive Insurance over the asset.

Also, note that these requirements could be more or less, depending on the specific type of loan you are applying for. However, all applications usually contain the documents as stated above.

How do I apply for covid 19 loans in Nigeria?

To apply for the COVID-19 loans in Nigeria, you should visit NIRSAL website by following the link http://nmfbng-website.azurewebsites.net/covid-19-support/. Also, depending on the type of loan you intend to apply for, you can view the individual requirements. Follow the procedure below:

1. Submit an application directly to NIRSAL Microfinance Bank (NMFB) along with an evidence of how COVID-19 has imparted your business
2. After this, they review your application and forward to CBN for approval
3. On successful application, CBN releases the money to NMFB for disbursement into your account

Note that you can only apply for this loan online.

Conclusion

These covid 19 loans in Nigeria have been a source of great help to businesses and homes in the nation. Furthermore, you should seek to apply for the fund to ease your financial distress and take advantage of emerging opportunities in the market, if greatly affected. 

You would agree that being unemployed can be very harsh on your finances. In this situation, it is very important that you are prudent with the little you have. However, no matter how careful you are with spending, there are some unprecedented events that will require you to spend some cash. In this situation, you might not be able to cater to these needs because you are out of work. The good news is, you can access very few loan options as unemployed. This article provides you with details about loan options you can leverage and everything you need to know.

Can you get a loan if you have no income?

As we have earlier mentioned, it is very possible to get a loan if you are unemployed. However, to qualify for a loan with any lender, you will need to have an excellent credit history. In addition to this, you must have a good credit score and an alternate source of income. In the case of an alternate source of income, they want to use this to determine if you can meet up with the loan repayment or not.

How to get a loan as an unemployed in Nigeria?

If you are unemployed, one of the easiest ways to secure a loan is through quick loans. We also know this loan option as short terms loans. With the advancement in Technology there are many Fintech companies that offer loans you can leverage. This loan option offers flexible repayment options and you can access them at most 24 hours after application. To access these loan options you can choose any of these financial institutions. Furthermore, these loan options require no paperwork or collateral before you can access them.

• Aella Credit:

This is an app-only platform that you can use to access quick loan options. They design this loan offering for Nigerians to access more funds. This ranges between #1,500 to 700,000. The repayment option is flexible, with an interest rate of 4%-29% monthly. Aella credit loan has a maximum tenor of 2 months.

• Carbon

Since its inception, Carbon has grown to be one of the most reliable when it comes to accessing quick loans in Nigeria. Once you meet up with all their requirements, you will be able to access the loan you request in minutes. All you will need is to provide your Bank verification code and other details for them to determine your loan worth. Their app. Is available for Android and iOS. The repayment for loans with carbon is flexible and the interest rate ranges from 5%-10%.

• Branch

As an unemployed, branch is also another platform with which you can access quick loans. You can access loans from #100,000 to #200,000 within 24 hours of application. Their interest ranges from 15% to 34% depending on the amount they offer you. To access this loan option you do not need any collateral or any source of income.

• QuickCheck

This financial organization provides you with loan ranging from #10,000 to #500,000. For a start, they will offer you #10,000 if they approve your application. They do this to test your trustworthiness and also to see if you can meet up with repayment. After your first loan, if you meet up with their expectations, they will then increase the amount you can access. One good thing with them is that the earlier you pay back the lower your interest rates.

• FairMoney

Fair money is a lending organization that is licensed to provide its customers with short-term loans ranging from #2,500 – #150,000. To access their loan offerings, you will need to provide them with your Bank Verification Number and your debit card. In addition, you will also need to provide them with other details such as your residential address and phone number,. After this, they will determine if you qualify for their loan or not. Fair Money interest rate ranges from about 5% – 28% with a tenor of a month to 26 weeks.

Conclusion

Unemployment is a big problem all over the world. The competition in the job market is as fierce as ever. Irrespective of this, as an unemployed you need to survive. This is why there are several financial organizations offering several loan options to cater to your needs. Their loans are lightning-fast and they will disburse into your account once you meet up with their requirements.

The government of any nation plays a very important role in its development. Primarily in charge of funds, the government controls regulations affecting businesses that indirectly control the market. However, more importantly, they provide loans for small businesses that help them thrive in the market. In addition, a country like Nigeria has its SMEs employing a majority of the workforce, which is why federal government loans for small businesses are very important. If you’re a small business owner, this article is particularly useful for you.

Which institutions handle federal government loans for small business?

The federal government of Nigeria primarily helps businesses develop. precisely small to medium-sized enterprises through the following established institutions:

1. The central bank of Nigeria (CBN)
2. Bank of Industry (BOI)
3. Bank of Agriculture (BOA)
4. Small and Medium Enterprises Development Agency of Nigeria (SMEDAN)
5. Development Bank of Nigeria (DBN)
6. Nigerian Export-Import Bank (NEXIM)

What are the types of federal government loans for small businesses?

The loan requirements and interest rates depend on the organization and specific loan type in question. However, the current federal government loans for small businesses in the country at the time of this writing are:  

AGSMEIS Loan for SMEs and Agricultural businesses 

the government specially designed this loan for SMEs in the country. However, it was birthed from a partnership between the government, through CBN, and the Bankers’ committee. Also, the loan promotes agricultural businesses too, and is disbursed through NIRSAL Microfinance bank primarily, and some other banks. It offers business owners up to 10 million up front, at an interest rate of 9% per annum.    

Creative industry Financing Initiative (CIFI Loan) 

the creative industry currently employs a large portion of youths in the country. They made this loan available to employ even more. Furthermore, the CIFI loan focuses on providing funds to the most active business owners in the creative industry. Its low cost financing helps the rapid development of the industry and other sub-sectors, growing the economy at large.

Anchor Borrowers Programme (ABP) Intervention for Agriculture 

this program is an initiative of the Central Bank of Nigeria (CBN) and is majorly for the agricultural sector. Furthermore, the loan targets small-scale farmers engaged in producing certain commodities who are part of an approved group. However, it’s not only for farmers, as businesses related to agriculture can also apply for the loan.

CBN Healthcare Research and Development Grants 

this loan is for SMEs on the front line of research and development in the country. Therefore, it provides funding for candidates to access funds that is used for different purposes, including new and improved drugs, diagnostics of infectious diseases, and vaccines. Also, it is accessible to institutions, pharmaceutical companies, biotechnological companies, etc.

MSMEDF Loan – Micro, Small and Medium Enterprise Development Fund 

this fund is part of the CBN’s effort to place emphasis on promoting small businesses in the country. It simply has a task of identifying financing gaps and plugging it for accelerated development. Also, the loan covers a verity of businesses including trade and commerce, artisans, cottage industry, agricultural value chain, etc.

Accelerated Agricultural Development Scheme (AADS Loan)  

agriculture has long been the focus of the government, which is why they receive lots of funding. Therefore, this loan also applies to the agricultural sector and aims to engage a good number of youths in agricultural production. Furthermore, it hopes to reduce the rate of unemployment and encourage economic diversification. This loan is only available to youths of age 18 to 35.

How do I apply for federal government loans for small businesses?

The application process for each loan differs and are stated by the government. Follow the process below to apply for a loan of your choice:

1. Proceed to the official online portal as provided by the body handling the loan
2. Read the loan requirements and ensure you qualify for the one you want
3. Proceed to follow the application process as stated by the official release of the government about the loan

Also, note that you can apply for some loans online, but would have to proceed to their physical office for others. It varies from one fund to another.

Conclusion

The presence of diverse funds and intervention means that SMEs are not alone. Therefore, if you are an SME owner, you can take advantage of these great opportunities to expand your business. In reality, SMEs are the bedrock of the economy, and the government is focused on growing them.