Loans & Grants

AGSMEIS Loan – How to apply for it in 3 steps

The AGSMEIS (Agricultural Small and Medium Enterprises Investment Scheme) is a loan scheme launched by the Central Bank of Nigeria (CBN) in 2017. The scheme is designed to provide financial support to agri-businesses and MSMEs in Nigeria.

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What are the documents I need to obtain the AGSMEIS loan?

  • Duly completed application form
  • Certificate of training from a CBN certified Enterprise Development Institution
  • Business plan
  • Loan application
  • Two guarantors who have good credit history
  • Pass online assessment (This replaces physical interview)

In addition to the above documents, you may also be required to provide the following documents, depending on the nature of your business:

  • Evidence of registration of business name or certificate of incorporation
  • Tax clearance certificate
  • Bank statements for the past 6 months
  • Financial statements for the past 3 years
  • Inventory list
  • Sales and purchase records

Please note that the list of documents may vary depending on the lending institution. You are advised to contact the lending institution directly to confirm the specific documents required.

Here are some additional tips for obtaining the AGSMEIS loan:

  • Make sure you have a well-prepared business plan. The loan officer will want to see that you have a clear understanding of your business and its financial projections.
  • Get a good credit score. A good credit score will make you a more attractive borrower.
  • Get two guarantors with good credit history. Guarantors are responsible for repaying the loan if you default.
  • Pass the online assessment. The online assessment is designed to test your knowledge of business and finance.

What businesses are eligible to obtain this loan?

  • Small businesses: Small businesses are typically eligible for business loans, as long as they meet the lender’s requirements. These requirements may vary depending on the lender, but they typically include having been in business for at least two years, having a good credit history, and being able to provide collateral.
  • Start-up businesses: Start-up businesses may also be eligible for business loans, but they may have a harder time qualifying than established businesses. Lenders will want to see that the start-up has a strong business plan and a clear path to profitability.
  • Non-profit organizations: Non-profit organizations may also be eligible for business loans, but they will need to meet different requirements than for-profit businesses. These requirements may include having been in operation for at least two years, having a good credit history, and being able to demonstrate a need for the loan.

It is important to note that not all businesses will be eligible for all types of business loans. The specific eligibility requirements will vary depending on the lender and the type of loan.

How can I apply for an AGSMEIS loan?

  1. Attend a compulsory training with a NIRSAL MFB-certified Entrepreneurship Development Institute (EDI). This training will teach you about the AGSMEIS loan scheme and how to develop a business plan.
  2. Create an account on the AGSMEIS website. You can do this by clicking on the “Apply Now” button and entering your details.
  3. Validate your BVN. You can do this by entering your BVN and clicking on the “Validate” button.
  4. Select a NIRSAL MFB-certified EDI. You will need to select an EDI that is located in the same state as your business.
  5. Upload your documents. You will need to upload the following documents:
    • Duly completed AGSMEIS loan application form
    • Bank Verification Number (BVN)
    • Proof of identity (e.g., passport, driver’s license, national identity card)
    • Proof of address (e.g., utility bill, rent receipt)
    • Business registration certificate
    • Tax identification number (TIN)
    • Current withholding certificate (if applicable)
  1. Submit your application. Once you have uploaded all of your documents, you can submit your application by clicking on the “Submit” button.

The AGSMEIS loan scheme offers loans of up to N10 million at a 5% interest rate per annum. The repayment period is between 3 and 5 years.

Here are some additional tips for applying for an AGSMEIS loan:

  • Make sure you have all of the required documents before you start your application.
  • Be clear and concise when describing your business plan.
  • Make sure your business is registered with the Corporate Affairs Commission (CAC).
  • If you have any questions, contact the AGSMEIS helpdesk.

AGSMEIS Loan Approval

The AGSMEIS loan approval process is as follows:

  1. The applicant creates an account on the AGSMEIS website and validates their BVN.
  2. The applicant selects a NIRSAL MFB certified Entrepreneurship Development Institute (EDI) to provide training and mentoring.
  3. The applicant completes the AGSMEIS loan application form and submits it to the EDI.
  4. The EDI reviews the application form and submits it to the NMFB.
  5. The NMFB reviews the application form and conducts a credit assessment.
  6. The NMFB approves or rejects the loan application.

If the loan application is approved, the NMFB will disburse the loan funds to the applicant’s NMFB account. The funds will be used to purchase equipment and working capital for the applicant’s business.

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The following factors are considered when approving AGSMEIS loan applications:

  • The applicant’s credit history
  • The applicant’s business plan
  • The applicant’s training and mentoring from an EDI
  • The applicant’s ability to repay the loan

The AGSMEIS loan approval process is typically completed within 30 days. However, it may take longer if the applicant’s application is incomplete or if the NMFB needs to conduct additional due diligence.

Here are some tips for increasing your chances of getting an AGSMEIS loan approved:

  • Make sure you have a good credit history.
  • Prepare a well-written business plan.
  • Get training and mentoring from an EDI.
  • Be able to demonstrate your ability to repay the loan.

If you are interested in applying for an AGSMEIS loan, you can visit the AGSMEIS website for more information.

In Conclusion:

Applying for an AGSMEIS loan can be a great opportunity for aspiring entrepreneurs to kickstart their businesses. However, it is important to note that meeting the eligibility criteria and submitting a complete application is just the first step. The NMFB may require additional documentation or conduct further due diligence to ensure the viability of your business plan and your ability to repay the loan. Therefore, it is crucial to put in the effort to increase your chances of getting your AGSMEIS loan approved.

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