Central Bank of Nigeria has announced a ?50 billion Targeted Credit Facility (TCF) for Micro, Small and Medium Scale Enterprises (MSMEs) in the country that have been affected by the COVID-19 pandemic.
Under this program, the apex bank will give loans of up to ?25 million to small businesses that have seen their activities impacted by the present disruptions. It also targets companies that have a viable plan to take advantage of the opportunities that have arisen with the current situation.
Households with a means of livelihood that have been adversely affected by the pandemic are also eligible to access this fund. They may get loans of up to ?3 million from the bank.
This stimulus package is administered through the NIRSAL
Microfinance Bank (NNB), a non-bank financial institution owned by the CBN
For Businesses and larger companies are eligible for the loan if:
They have financial records and accounts statements
They can justify their request for credit by their sales proceeds and cash flow records
They can show how the disruption caused by the pandemic has adversely affected their business
They are willing to allow NIRSAL’s credit unit to assess their financial records
For Households
Households are eligible if
They can show evidence of the adverse impact of the pandemic on them
They are willing to allow NIRSAL to assess their financial records
Businesses and households are expected to apply with the
following
A loan application letter
Completed application form
Guarantor form
Valid means of identification (National ID, voters’ card, driver’s license, or international passport
Current utility bill (from the applicant and guarantor
Two recent passport-sized photographs
Bank Verification Number (BVN
How the Process Unfolds
Application
Submit your application to the NIRSAL microfinance bank via
their website. Include details of the adverse impact or opportunity that has
prompted you to make the request.
2. Review and
Approval
Your application will be reviewed by NIRSAL and forwarded to
the CBN for approval.
Disbursement
If the CBN determines that the request meets its criteria,
it will approve the disbursement of the loan to you via NIRSAL.
Terms of Repayment
A 5% annual interest rate applies on loans disbursed to
businesses and households, up until 28 February 2021. Thereafter, the interest rate will be fixed at 9% per annum
The tenure for working capital loans under this scheme is
one year. Term loans have a maximum tenure of three years, with a one-year
moratorium at the least
If you would like to apply for the CBN’s Targeted Credit facility and access up to N25 Million Targeted Credit Facility for COVID-19. The Central Bank of Nigeria (CBN) introduces a stimulus package to support households and Micro, Small and Medium Enterprises (MSMEs) affected by the COVID-19 pandemic.
Let us understand the Concept of Targeted Credit Facility (TCF)
The Coronavirus Disease (COVID-19) pandemic has led to unprecedented disruptions to global supply chains, sharp drop in global crude oil prices, turmoil in global stock and financial markets, massive cancellation of sporting and entertainment event, lockdown of large swaths movements of persons in many countries, and intercontinental travel bans/restrictions across critical air routes across the world.
These outcomes have had severe consequences on households’ livelihoods and business activities, resulting from drop in global demand, declined consumer confidence and slowdown in production.
In this respect, the Central Bank of Nigeria (CBN) introduced the N50 billion Targeted Credit Facility (TCF) as a stimulus package to support households and Micro, Small and Medium Enterprises (MSMEs) affected by the COVID-19 pandemic.
Who Is Eligible?
Households
Households with verifiable evidence of livelihood adversely impacted by COVID-19
You can apply now as an MSMEs or Existing enterprises with verifiable evidence of business activities adversely affected as a result of the COVID-19 pandemic