The arts and crafts make up an integral part of any community. They are what depicts the soul and the identity of any group of people. Recognising the importance of creatives is a crucial thing to do.
However, being a member of the creative community can be tough because so many opportunities are not open to this sector. This applies most, especially in loans.
Getting a loan as a creative for your business is very difficult, considering most banks will only finance a loan with a prime chance of repayment, and creative loans do not rank highly. This could be depressing, but not to worry— there’s hope on the horizon. If you’re creative, and you’re looking for a loan, this post provides information on how to solve your money issues with loans from the Central Bank Of Nigeria.
About CBN loans for Creatives
Recognising the need to cater financially for the creative industry, both the Central Bank and the Bankers’ Committee set up and implemented plans to facilitate this idea.
This idea comes in the form of the Creative Industry Financing Initiative. CIFI is set up to help in the process of job creation by encouraging entrepreneurship in the creative industry with the loans.
Who is eligible for the Creative Industry Financing Initiative?
The initiative covers four focal points in the creative industry. These focal points are Fashion, Movie/Film, Music and Information Technology. These categories mainly include the aspects of movie production and movie distribution, software engineering, fashion designing and music student loans. Anyone in these fields is automatically eligible to apply.
How much is available for loans?
The Creative Industry Financing Initiative realises how intensive the creative industry is, and that to make value, the loans need to be substantial. That is why businesses applying for loans in the CIFI are eligible for loans up to the amount of N500 million.
How does the CIFI work?
One primary requirement of the loan is to be a member of the creative industry, especially in the categories listed above. As there are different categories, so also does the amount eligible for each vary. The categorisation goes as follows;
- Software Engineering students can get up to N3 million
- Movie Production businesses can get up to N30 million
- Businesses into Movie distribution are eligible for up to N500 million
- Fashion and Information Technology businesses can get loans to cover their rentals and other service fees
- Music businesses can get loans to cover the fees for training, equipment and rentals, and service fees.
How to apply for CIFI loans
- Prepare your business plan. This should state how much we need and what the business entails. The business must operate in the creative industry.
- After preparing the plan, head off to any Bank of your choice and apply for the loan.
- Your application will be analysed and reviewed and determine if your business is eligible. If it is, the loan is successful, and you get the funds requested for.
Does the loan charge interest?
The CIFI loans attract a maximum of 9 percent interest rate per annum.
What are the repayment schedules for the CIFI?
The various categories have unique payment schedules. They are as follows;
- Software Engineering Student Loans are to repaid under three years maximum.
- Movie Production and Distribution loans have a maximum of 10 years.
- The Fashion, Information Technology and Music based loans have a ten-year maximum repayment plan.
If you’re a creative looking for loans in Nigeria to finance your studies or business, then applying for the Creative Industry Financing Initiative is your best bet to getting that financial help.