APPLY: FG begins loan disbursement process for MSME, manufacturing sector

APPLY: FG begins loan disbursement process for MSME, manufacturing sector

The federal
government says it has commenced the loan disbursement process for micro, small
and medium enterprises (MSME) and manufacturing sectors.

In a statement on Monday by the office of the ministry of
industry, trade, and investment, the initiative is aimed at boosting economic
growth and industrial development.

According to the ministry, N75 billion each has been
allocated to support MSMEs and the manufacturing sector.

“The Federal Government of Nigeria is proud to announce the
operational launch of the MSME and Manufacturing segment under the
prestigious Presidential 200 Billion Naira Intervention Fund,” the ministry
said.

 “With applications
for the Presidential Conditional Grant Scheme now closed, we are excited to
move forward with the loan disbursement process for the MSME and Manufacturing
sectors, aimed at boosting economic growth and industrial development.

“This fund is strategically divided, dedicating 75 Billion
Naira to MSMEs and another 75 Billion to the manufacturing sector.

“We are pleased to report that the initial disbursement to
nano businesses has been met with success, and we are well on our way to
supporting 1 million nano businesses throughout the country.

 “Thousands of
beneficiaries have already confirmed receipt with many more to come.

“We invite eligible enterprises to join this transformative
initiative. To apply, please visit our official application portal at
www.fedgrantandloan.gov.ng.

“Additionally, applicants seeking more detailed information
should visit their local state Bank of Industry branch.”

CRITERIA FOR MSME LOANS UP TO N1M

ELIGIBILITY CRITERIA


 Must
     be an existing business in operation for at least one year, or a
     registered start-up.
 Provide
     CAC business registration documents.
 Present
     the company’s bank statement for existing businesses or the chief
     promoter’s bank statement for start-ups.
 Fulfil
     the required monthly turnover and comply with other requirements as
     specified by the bank.


SECURITY


 Provide
     a personal guarantee of the promoter.
 Agree
     to bank verification number (BVN) covenant.
 Adhere
     to global standing instruction (GSI) and other securities as required by
     the bank.


REPAYMENT FREQUENCY

Monthly equal instalments with no moratorium, spanning a
3-year term.

CRITERIA FOR MANUFACTURER LOANS UP TO N1B


 Choose
     between working capital or asset financing.
 Maintain
     at least a 6-month business/corporate banking relationship.
 Provide
     additional documentation as required by the bank.
 Asset
     financing comes with a 5-year repayment period, and working capital
     financing includes a 6-month moratorium on principal and interest,
     followed by a 12-month equal instalment repayment plan.


On April 16, FG commenced the
disbursement process for the presidential conditional grant scheme to verified
applicants.

President Bola Tinubu launched the scheme on October 17, 2023, to cushion the
effects of the removal of petrol subsidy and other economic shocks.

 

Source: APPLY: FG begins loan disbursement process for MSME, manufacturing sector

 - NigerianEye
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