- 1 GENERAL REQUIREMENTS FOR AGRICULTURE LOAN
- 2 List Of Agricultural Loan
- 3 1). BANK OF AGRICULTURE (BOA) LOANS
- 4 2). Commercial Agriculture Credit Scheme (CACS)
- 5 3). Agric-Business Small and Medium Enterprise Investment Scheme (AGSMEIS)
- 6 6). Agricultural Credit Guarantee Scheme Fund (ACGSF)
- 7 2). Nirsal Micro Finance Bank Loan
- 8 3). Agricultural Credit Support Scheme (ACSS)
- 9 7). Poultry Farm Loan in Nigeria
Agricultural Loan in Nigeria 2020 to 2021 and How to Apply for the various Government and CBN Agric Loan. In the wake of the covid-19 pandemic coupled with the economic depression, various institutions like the federal government, CBN, and more are giving out Grants and Loans, and also creating various programs and schemes to curb the negative impact of the bad economic and possible get the economy back to its feet.
Among the numerous list of aids and loan schemes and programs being created this period, the Agricultural loan seems to be the easiest to access. Although it can be a little bit difficult for those newly entering the farming business.
Hiring or purchasing land and other expensive farming and agricultural tools seems to be the biggest challenge they have, and that is the reason agricultural loans like the ones listed below are very important to farmers.
Below, you will see a list of agricultural loans from different institutions (CBN, Government, etc) and how to apply for CBN agric loan & government agric grants and loans. Lucky enough, many of the loans listed below can be accessed without collateral.
GENERAL REQUIREMENTS FOR AGRICULTURE LOAN
Before we give a list of the various agricultural loan available in Nigeria, below are the general requirements needed for accessing an agricultural loan.
NOTE: The list of requirements below may differ from most institutions listed on this page. Agricultural loans with different requirements will be listed.
- A good business plan.
- Certificate of Incorporation.
- Board Resolution to Borrow.
- Formal application for a credit facility.
- Memorandum and Article of Association.
- Have available, a 20% partial payment of the loan.
- Have nothing less than a six-month relationship with the bank in terms of making payments into your account.
List Of Agricultural Loan
Are you in search of an agriculture loan to fund your farming project, buy farming pieces of equipment, hire laborers, and other related purposes? Below is a list of agricultural loans with very low interest and accessed even without collateral.
1). BANK OF AGRICULTURE (BOA) LOANS
The Bank Of Agriculture of Nigeria which is usually referred to as BOA for short is a federal government agent which stands as a major avenue to dispatch loans to farmers. They also disperse funds to other agriculture business owners who are in need of a loan in terms of raising capital for their various agricultural activities.
The activities of BOA are originally run by the federal government of Nigeria, while the Central Bank of Nigeria and Federal Ministry of Finance Incorporated are acting as supporting shareholders of the bank.
We usually recommend BOA as the first choice for most farmers or corporate bodies in Nigeria in need of a government loan. BOA loan is easy and fast to access, and the processing process is smooth.
2). Commercial Agriculture Credit Scheme (CACS)
Business owners can benefit from the commercial agriculture credit scheme N200 billion Fund. The CACS program was set up in 2009 by the Central Bank of Nigeria, the Federal Ministry of Agriculture, and Water Resources. The actual aim of the program is to enrich and develop the Nigerian agricultural sector by offering financial supports to farmers.
CACS gives farmers loans with a single-digit 9% interest at most. The fund will continue to be available until 2025, so both new and existing entrepreneurs in the agricultural sector will benefit from it.
Those Eligible for the CACS Loans
Just like we mentioned, both large and medium-scale farmers involved in fisheries, cultivation of crops, animal husbandry, and more. Also, other sectors that are eligible for the CACS loans are the liability companies that are into agricultural production and other related activities.
3). Agric-Business Small and Medium Enterprise Investment Scheme (AGSMEIS)
Are you in search of an agric loan without collateral? Then AGSMEIS happens to be the best option for you. AGSMEIS which stands for Agric-Business Small and Medium Enterprise Investment Scheme is the brainchild of the Central Bank of Nigeria. The aim of this program is to offer loans to farmers and other agricultural businesses even without collateral and with a 5% interest rate.
AGSMEIS serves as a vehicle for establishing sustainable economic development and also the creation of employment. AGSMEIS program was approved on the 9th February 2017 during its 331st meeting held that same day. They require all the banks in Nigeria to annually set 5% of their profit aside after tax (PAT).
The program also ensures that SMEs (Small and Medium Enterprises) have access to funds. They also ensure also adequate agricultural development also sustain agricultural values and practices in Nigeria.
HOW AGSMEIS WORK
- Interested applicants are required to attend compulsory training with the CBN-certified Entrepreneurship Development Institute (EDI) or Center (EDC).
- Interested applicants should apply for loans through EDI.
- However, all applications are sent to the CBN for processing and approval.
- Those applied will be called for an interview regarding his/her business
- Then, loans are paid into the account of beneficiaries.
- All applicants should get business support services. EDI is there to assists and implement a business plan and provide business support services commercially to applicants.
- Make sales, run your business, keep proper records, monitor sales, and expenses to maximize profit, and pay back the loan.
Requirements for CBN AGSMEIS Funds
- Registered business with CAC
- Evidence of tax payments
- Letter of Introduction
- Letter of Guaranty
- Certification by an EDI
- Passport photo of you and guarantor
- Valid ID card
6). Agricultural Credit Guarantee Scheme Fund (ACGSF)
The ACGSF has been around since 1977 by Degree no 20. Although the full operation started in 1978. The Central Bank of Nigeria and the Federal Government held the share capital of this fund. Notwithstanding, the scheme is mainly managed by the CBN (Central Bank of Nigeria).
Studies show that the ACGSF program has increased the flow of funds into the agricultural sector in Nigeria. Actually, the leading shareholders in the ACGSF program have shown higher commitment for the scheme to reach its massive objectives. Farmers are encouraged to apply for ACGSF loans from the various participating banks in the scheme in order to increase their agricultural activities.
2). Nirsal Micro Finance Bank Loan
Just like most institutions, the Central Bank of Nigeria also partners with the federal government of Nigeria to issue out loans with low interest to farmers in Nigeria.
The Central Bank of Nigeria recently set outside close to 75billion naira as grants to farmers and other corporate bodies across Nigeria. The loan can be directly accessed from the Bank of Agriculture (BOA).
3). Agricultural Credit Support Scheme (ACSS)
Agricultural Credit Support Scheme which is also known as ACSS for short is a program established by the federal government in collaboration with CBN (the Central Bank of Nigeria). The Commercial Banking committee is also a participant in the creation of this program which enables farmers to explore more in the agricultural sector in Nigeria.
ACSS was created to reduce inflation and also lower the cost of agriculture production. The aim is also for farmers to generates enough agricultural products for export which will help increase Nigeria’s foreign earnings. ACSS program operates at the national level through CIC (the Central Implementation Committee).
Meanwhile, it operates through SICs (State Implementation Committees) at the state levels which ensures that the objectives of the program are effectively carried out.
Small scale farmers can access ACSS loans through banks of farmers’ associations for small-scale farmers. Meanwhile, large-scale farmers can directly apply to the banks in alien with the scheme guidelines.
7). Poultry Farm Loan in Nigeria
The poultry farm loan is promissory capital allocated to poultry farmers to purchase capital assets used in running a poultry farm. However, the agreement keeping poultry farm loans in Nigeria leaves a clear commencement and termination of the loan.
Generally, this type of loan is gotten through the BOA (Bank of Agriculture). The Central Bank of Nigeria also and the other Agricultural-related initiatives and schemes.