The Central Bank of Nigeria (CBN) has launched the Micro, Small and Medium Enterprises Development Fund (MSMEDF) aimed at promoting a healthy financial system in Nigeria. In this post, you will learn how to access CBN MSMEDF loan, and the necessary requirements.
MSMEDF loan was developed by CBN after noticing huge financing constraint which hinders the Micro, Small and Medium Enterprises (MSMEs).
Objective of MSMEDF Loan
- To channel low return funds to the MSME sub-sector of the Nigerian economy via Participating Financial Institutions (PFIs).
- Increase output and productivity for both micro and small enterprises.
- Create more jobs and reduce the increasing rate of unemployment in Nigeria.
Requirements for MSMEDF loan
To access Micro, Small and Medium Enterprises Development Fund (MSMEDF) loan, applicants must meet the following requirements;
- Applicants must have valley d means of identification
- Bank Verification Number (BVN) and bank account
- Active Phone number and email address.
- Applicants must have business under any of the following categories;
- Agricultural value chain
- Trade and general commerce
- Cottage Industries
- Renewable energy/energy efficient product
Collateral for the loan
Any of the following educational documents can serve as collateral;
- SSCE or NABTEB
- National Diploma (ND)
- National Certificate of Education (NCE)
- Higher National Diploma (HND)
- University degree (NYSC Certificate where applicable) and a guarantor.
How to Access CBN MSMEDF Loan.
- Apply through any nominated PFIs (Participating Financial Institutions) for financing.
- PFIs shall assess the value or quality of the applications for economic and financial viability.Need Federal Govt Free-Interest Loan? =>See Here.
- The PFIs is to forward the applications through the State SPV to the CBN in the prescribed format.
- CBN shall undertake a pre-disbursement assessment of financing requests presented to it by the SPVs on behalf of the nominated PFIs.
- CBN shall approve and disburse funds directly to the PFIs’ correspondent bank accounts.
Note: MSMEDF loan financing repayment shall be annually.
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