Have you been in search of the Bank Of Agriculture (BOA) Loan Portal? Do you wish to benefit from the government loan set aside to help farmers access funds that will help them increase and expand food production in Nigeria? Don’t worry because we will show you all you need to know about the Bank Of Agriculture and how to apply for the loan.

The Bank of Agriculture loan is an initiative of the Nigerian government, and they sponsor and provide both large-scale farmers as well as small businesses with credit facilities.

The BOA (Bank of Agriculture) in 1972 was incorporated as the Nigerian Agricultural Bank (NAB) but became operational in the year 1973. The Bank Of Agriculture which is known as BOA for short is one of the institutions in Nigeria that offer agricultural grants and loans.

BOA is Nigeria’s leading agricultural financial institution, as well as the largest development finance institution with more than 40 years of experience in rural and agricultural finance. They have a mission of improving lives, stimulating agriculture, growing communities as well as providing profitable loan products to their customers.

BOA is owned by the Federal Ministry of Finance and the Central Bank of Nigeria (CBN). They presently have branches in different states in Nigeria. The Bank Of Agriculture is regulated by the CBN (Central bank of Nigeria) and supervised by the Ministry of Agriculture.

boaWhat Type of Loans Do the Bank of Agriculture Offer?

The Bank Of Agriculture (BOA) offers both agric loans as well as Non-Agric loans.

Agric loans

The Agric loans offered by BOA in Nigeria include the following:

Direct Credit Product

  • Loans to finance agricultural productions as well as Agro-allied activities.
  • Loans you can receive ranges above N250,000.00 to a maximum of N50,000,000.00
  • Individual persons are limited to N5,000,000.00.
  • Corporate organizations are above N5,000,000.00.
  • Loan tenor not exceeding 5 years
  • Disbursement of both cash as well as kinds
  • For both cooperate bodies and individuals
  • Staggered disbursement
  • Security acceptable to BOA requirement
  • Backed up with a profitable, viable, as well as bankable business proposal
  • The interest rate is 14% for agro-processing and agricultural production, meanwhile, commodity marketing is 20%.
  • You required a current tax clearance certificate
  • Last 3 years audited statement of affairs or statement of account required
  • They also require consent to a mortgage of the landed property being pledged as the loan security

Large Credit Product

  • Loans to finance large Agro-allied activities and agricultural production.
  • Loan tenor not exceeding 5 years
  • Staggered disbursement
  • The volume of loan ranges above 50 million to a maximum of 1 billion for a single obligor
  • Accessed by only corporate bodies
  • Disbursement of both cash as well as kinds
  • Backed up with a profitable, viable, and bankable business proposal

Acceptable Security to BOA Requirements:

  • The interest rate for agro-processing and agricultural production is 14% meanwhile marketing is 20%
  • The current tax clearance certificate is required
  • Last 3 years audited statement of affairs or statement of account is required
  • They also require consent to a mortgage of the landed property being pledged as the loan security

Youth Agricultural Revolution In Nigeria (YARN)

  • Created to encourage the Nigerian Youths to join agriculture and take it as a business or an investment
  • The highest loan limit under this product is N1 million per beneficiary
  • As defined under the NIRSAL (Nigeria Incentive Risk Sharing for Agricultural Lending) guidelines, the beneficiaries must be smallholders
  • To ease unhindered access by these target groups, the beneficiaries are not required to have collaterals but will definitely provide acceptable guarantors
  • Groups or individuals can access the loan. The individuals in this group can receive N1 million each subject to technical determination of financial requirements and scope of the project
  • Group and individuals in line with the NIRSAL Interest Draw Back Program (IDP) and Credit Risk Guarantee (CRG) can access the loan
  • Your project type determines your Loan period, Moratorium, or Grace on the products
  • NIRSAL provides 75% credit guarantee. Interest Rate 12%

Grow And Earn More (GEM)

  • Created to motivate Nigerian women to join in agriculture and also take it as a business
  • The highest loan limit under these products is N1million naira per beneficiary subject to technical determination of input requirements and the scope
  • Beneficiaries must be smallholders with land for cultivation or any of the value chain products
  • Beneficiaries don’t need collateral to ensure unlimited access by these target groups. In place of this, there’ll be collateral substitutes such as acceptable and adequate guarantors with verifiable income, NIRSAL CRG (Credit Risk Guarantee) to cover 75% of loan delinquency
  • Groups or individuals can access these loans. Individuals in this group can receive N1 million naira each subject to technical determination of financial requirements and scope of the project
  • Your project type and gestation determines your Loan period, Moratorium, or Grace on the products
  • 12% is the interest rate.

Non-Agric Loans

The Bank Of Agriculture also offers Non-Agric loans, which include:

  • Loan size – NGN250,000 Maximum
  • Loan tenor – Short Term (at most 2years)
  • Interest rate – At Prevailing Rates
  • Target group – Petty traders, Smallholder farmers, artisans, etc
  • Lien deposit – 20% of loan amount required
  • Security – Two (2) reputable guarantors
  • Can be accessed by self-help groups, individual, or cooperatives.
  • Must operate an account with the Bank for a minimum period of three (3) months
  • The micro-projects must be viable

The BOARBI Model

  • Entry-level – N20,000.00 – N40,000.00
  • Targeted Groups – Rural active poor
  • Lien deposit – 10%
  • Loan tenor – Maximum of 10 months
  • Interest rate – At Prevailing Rates
  • Approving authority – Branch Credit Committee
  • Project types – Micro-Enterprise
  • Security – Cross guarantee of Group members
  • Mode of collection – Weekly at Group Meetings
  • Accessible only through women group

SME (Small and Medium-sized Enterprises) Loan for Individuals

  • Credit facility of up to N5,000,000 (maximum) can be accessed by individuals mostly for agricultural Projects
  • It is a collateralized loan

Bank of Agriculture Loan Requirements

  • Having an active Bank of Agriculture account is one of the main requirements for all loans. Thus, you need to open an account with them if you want to access their loan.

Below are the following requirements for opening a BOA Individual Savings Account:

  • Two Completed Signature Cards.
  • Four (4) recent colored passport photographs each of authorized signatory endorsed by the account holder.
  • Completed account opening package (To be provided at the Branch Office)
  • Should in case it’s a joint account, Signature cards will be completed by all signatories with signing instructions e.g. “Both to sign”, or “Either to sign” or “Any two or three to sign,” clearly
  • Should in case the person is a minor, four (4) passport photographs should be added to the mandate
  • Any identification means i.e National ID Card, NIN, Voters Card, Driving License, International passport, etc.

Bank Of Agriculture Interest Rate

Below are the various BOA interest rates on different metrics:

  • 14% (per year) for SME Agricultural production.
  • 14% (for each year) for SME Agro-processing
  • 20% (for each year) for SME Agriculture Marketing
  • 12% (per year) for Micro Credit Loans agric
  • 20% (for each year) for Microcredit loan (Non-Agric)
  • 14% (per year) for YARN & GEM products

Bank Of Agriculture Loan Portal & How To Get a Loan From BOA

If you are comfortable with the interest rate and still want to get a loan from BOA:

1. Prepare Your Documents

While we have listed all the necessary documents above, it’s also important to get them ready.

2. Go to Any BOA Branch Close to You

Secondly, after preparing your documents, take them to the nearest Bank Of Agriculture close to you. So, search online for the BOA closest to you.

3. Submit Your Document

As soon as you locate the BOA branch closest to you, tell them the reason you visited them. Also, follow the instructions given to you. And, finally submit your documents.

NOTE: You can also gain assess to the loan through the Bank Of Agriculture official website www.boa.ng

Finally

In conclusion, Agriculture happens to be among the most important economic sectors in Nigeria. This is the reason the federal government supports various loan programs for farmers.

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