Agriculture has been a mainstream of the Nigeria economy. However the government does everything possible improve and maintain food supply in the country.
The Federal Government Agricultural Loan is made available to farmers to help them with the financial needs of the farming business. So everything you ought to know about how to acquire the loan is clearly given in this article.
You must have the following requirements in order to obtain the Federal Government Agricultural loan through the Bank of Agriculture (BOA):
- A good business plan for your agricultural business.
- You must have opened and maintained a customer account for at least 6 months
- You must deposit at least 20% of the amount you want to borrow.
- Definitely you place a collateral in the exception of land
To obtain the Federal Government Agricultural credit from commercial banks like:
- Stanbic IBTC
- Zenith Bank
- First Bank
- Union Bank
You must make provisions for the following requirements:
- A certificate of incorporation
- A formal application for a credit Facility.
- Business plan and feasibility study of the business.
- Memorandum and article of association.
- Board resolution to borrow for that purpose.
- List and addresses of cooperatives and farms should be included for state governments.
Other documentations are requested after project visit.
Who Can Participate?
To apply for the federal government agricultural loan, you must belong to either of these categories:
- Medium and large scale commercial Farms who are in crops cultivation or rearing of livestock and in aquaculture.
- Limited liability companies who are in the entire value chain of agricultural production, marketing, storage, processing, enterprise development and any other forms of agricultural development.
- State governments and the Federal Capital Territory.
How to apply
The Federal Government Agricultural loan provided by the Central Bank of Nigeria is disbursed through the Bank of Agriculture and other eligible commercial banks.
To apply for this loan, you can proceed to any Bank of Agriculture (BOA) closest to you or any of the commercial banks listed above.
Fill the form and submit it to the bank, providing all the requirements unless the bank states otherwise.
The federal government agricultural loan has a maximum interest rate of 9%.
Other Popular Banks That Gives Loans In Nigeria:
- Kiakia Loan App
- Gtbank Quick Credit Loan
- Fairmoney Loan
- Fcmb Loan
- Grofin Loan
- Lydia Loan
- Renmoney Loan
- Lapo Microfinance Bank Loan
- Federal Government Loan Scheme For Youth
The repayment of the commercial agriculture credit scheme shall be done on quarterly basis for at least three years, depending on the size of your business.
Pros & Cons
|You can get a loan of up to N200 billion.
The credit will be available up till 2025.
You can apply through various banks.
Your asset must worth up to N50 million
It is not open for start ups.
Only Cooperatives societies and government can benefit from this agricultural credit.
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