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:
- Hospitality, which includes accommodation and food services
- Health (pharmaceuticals and medical supplies)
- Agricultural value chain activities
- Airline service providers
- Manufacturing and value addition
- 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:
- Moveable asset(s) duly registered on the National Collateral Registry (NCR);
- Deposit of title documents, in perfectible state;
- Deed of Debenture (for stocks) in perfectible state;
- Irrevocable domiciliation of proceeds;
- Two (2) acceptable Guarantors;
- Personal Guarantee of the promoter of the business;
- Life Insurance of the Key-Man, with NMFB noted as the First Loss Payee; and
- 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:
- Submit an application directly to NIRSAL Microfinance Bank (NMFB) along with an evidence of how COVID-19 has imparted your business
- After this, they review your application and forward to CBN for approval
- On successful application, CBN releases the money to NMFB for disbursement into your account
Note that you can only apply for this loan online.
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.