Micro Small and Medium Enterprises Development Fund

If you own a micro, small or medium agricultural enterprise, this loan facility is a special intervention fund provided by the CBN to support your business. You get this loan at a low interest cost and enjoy long-tenured repayment structure; to assist your business in enhancing capacity for employment generation, growth and economic development. 

Trusted customers of FirstBank seeking to expand their agri-businesses using low priced credit facilities as made possible under the scheme can benefit from this loan.

Features

  • Maximum obligor limit is N50m.
  • Maximum tenure is 5 years.
  • Management experience of at least 3 years in the enterprise to be funded is required.

 

Benefits

  • Interest rate: 9% (all-in), no other fee can be charged.
  • Credit facility is available either as term loan or overdraft.

 

Required Documents

  • Formal application for a credit Facility.
  • Certificate of Incorporation.
  • Memorandum and Article of Association (MEMART).
  • Board Resolution to Borrow.
  • Feasibility Study/Business Plan.

 

Who Can Apply

  • SMEs with at least 3yrs Mgt Experience (Max obligor limit of N50m).

If you are interested in taking up our facilities, please contact the Agric Finance Desk through email on:

agric@firstbanknigeria.com

                         Frequently Asked Questions

 1) What is MSMEDF?

  • Special intervention fund of N220bn created by the CBN to provide low cost, long tenored funds to MSMEs to enhance their capacity for employment generation, economic development and inclusive growth.

2) Who Can Participate?

  • Tested and trusted customers of FirstBank seeking to expand their agri-businesses using low priced credit facilities as made possible under the scheme.
  • Not for start-up projects

3) What is the interest rate?

  • Maximum of 9% all-in.

4) How do I qualify for this facility?

  • No record of non-performing loans with any financial institution
  • Maximum obligor limit is N50m.
  • Management experience of at least 3 years in the enterprise to be funded is required.   
  • Collateral includes landed property with EFSV of 130% of facility limit, lien on assets/commodity being financed, all assets debenture on assets  and Guarantee of Promoters/Directors for the bank’s exposure.

5) What are the required documentations?

  • Formal application for a credit Facility
  • Certificate of Incorporation
  • Memorandum and Article of Association
  • Board Resolution to Borrow
  • Feasibility Study/Business Plan
  • Business plan including cash flow projection with assumptions, marketing plan, repayment plan and draw down schedule.

6) Can I apply at any branch? 

  • Yes, you can walk in to the nearest FBN branch to apply.

7) How soon can I get my loan approved? 

  • This depends on different variables like; your business plan, cash flow, swift provision of accurate documentations and adequate collateral.

8) How soon can I get the facility after approval?

  • This depends on duration of receipt of funds from CBN after due diligence.

9) Can I get a longer tenor for my facility?

  • Maximum tenure is 5 years.

10) Can a farmer use his farmland as collateral for Agricultural Loan?

  • No, farmland is not on the list of acceptable collateral under Agricultural Finance.

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