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Targeted Credit Facility – Meaning and how to apply

Last updated on August 10th, 2023 at 01:47 pm

The Novel Corona Virus, which we also know as COVID-19, struck the work at a time everyone least expected. The impact of the pandemic shook the entire world to its foundations. These include disruption to our daily activities, world trade, global supply chains, and a drop in prices of crude, stock, and financial markets. It is in this respect that the Central Bank of Nigeria presented an N50 Billion TCF (Targeted Credit facility). This is to help households and MSMEs cushion themselves against the hard-hit impact of the COVID-19 pandemic. In this article, we will be discussing all that you need to know about the Targeted Credit Facility, and how you can apply for it.

What are the Minimum Requirements?

The fact is, not everyone qualifies for this. Basically, according to the guidelines put in place by the Central Bank of Nigeria, only households and MSMEs qualify for this. However, it is important that the household and MSMEs must have verifiable evidence of being adversely impacted by the COVID-19 pandemic. You can check out our post on the Central Bank of Nigeria loan.

Furthermore, to access the TCF you will most likely need collateral. NIRSAL Microfinance Bank will duly determine the type of collateral that you need. In most cases, these may include any of the following or more:

  • A comprehensive Insurance cover over your asset
  • Moveable Asset(s). This must be duly registered with the National Collateral Registry (NCR)
  • Deed of Debenture for stocks
  • Two Guarantors
  • Personal Guarantee. This is for the promoter of the business.
  • Life Insurance of the Key-man. This must be with Nirsal Microfinance Bank.
  • Irrevocable Domiciliation of proceeds

The provision for the TCF is financed by what is called the MSMEDF (Micro, Small, and Medium Enterprises Development Fund). This fund caters to activities such as Agriculture, hospitality, health, airline service providers, and all business prescribed by the CBN. Other options like the TIES Loan carters for entrepreneurship needs.

What is the Maximum and Minimum Facility Limit?

It is important to note that the amount you can access will most likely vary from one person to another. Basically, this depends on the category you belong to.

Individuals under the MSME umbrella can access a maximum of N25 million. However, this amount is subject to a lot of factors. This includes your business’s cash flow, size, and industry. On the other hand, households can access a maximum of N3 million. Note that there are different types of credit facilities provided by banks in Nigeria.

How do I apply for the TCF?

Applying for the CBN’s Target facility is very easy. All you have to do is simply follow the guidelines below:

  • Visit Nirsal Microfinance Bank at
  • Scroll down till you see a call to action button named “Apply Now”
  • Click on the button
  • And enter all the information that is required of you.

Targeted Credit Facility Repayment Terms

Basically, the repayment of the CBN’s Target facility is on an instalment basis. However, it is important to note that this is subject to some factors. These are the nature of your business, the agreed repayment work plan/schedule, etc.

Furthermore, the working capital is a maximum of 25% of your business’ previous 3 years’ turnover. However, if your business is not up to 3 years, they will leverage the previous year’s turnover. In this case, the tenor is a maximum of 1 year. On the other hand, term facilities have a maximum tenor of not more than years.


The Central Bank of Nigeria has put in place this scheme to help businesses and households navigate through the tough times of the COVID pandemic. If you are eligible for the TCF, do not hesitate to apply.