₦1,000,000 Loan by FG for MSMEs

Learn how to access a one million naira presidential palliative loan program, a joint effort of the federal government, State Governments, Honourable Ministers, NASME (Nigerian Association of Small and Medium Enterprises), Senators, and House of Representatives Members.

This loan scheme is perceived as a Game-changer in Economic Empowerment. The sum of 75 billion will be disbursed to MSMEs with up to one million naira for each beneficiary.

The loan term is a three-year repayment period for MSMEs, a year’s repayment period for working capital, and a year’s repayment period for the purchase of machinery and equipment.

Below are the businesses that are eligible to apply for the loan scheme:

1. Traders
2. Food Services
3. ICT
4. Transportation
5. Creative
6. Artisans

Loan Eligibility Criteria

• Loan up to 1M
  • A) Eligibility Criteria
    • Existing business must be in operation for one (1) year,
    • Start-ups must be a registered business
    • Provide CAC business registration documents.
    • Company’s Bank Statement(s) for a period of one (1) year (for existing business)/ Chief Promoter’s  (Director or Business owner) Bank Statement(s) for a period of one (1) year (for startups).
    • Have required monthly turnover and other things as may be requested by the bank.
  • B) Security
    • Personal Guarantee of the promoter
    • Acceptance of BVN Covenant (Global Standing Instruction- GSI), and any other thing that may be required by the bank
  • C) Repayment Frequency
    • Monthly equal installment (no moratorium) over a period of 3 years

2. Manufacturers up to N1billion (Working Capital or Asset Financing)

• A) Eligibility Criteria
  • At least 6months business/ corporate banking relationship
  • Provide CAC business registration documents
  • 12 months bank statement for other bank
  • Other documentations that may be required by the bank.
• B) Security
  • As may be required by the bank
• C) Repayment term:
  • i) Asset Financing
    • 6 Months moratorium on principal and interest, 5 years repayment period for asset financing only
  • ii) Working Capital Financing
    • 12months equal installment of principal and interest