10 things you need to know to access CBN’s N50bn COVID-19 intervention fund

1.  Households with verifiable evidence of livelihood adversely impacted by COVID-19 are eligible.

2.  The credit is also available to enterprises with verifiable evidence of business activities adversely affected as a result of the COVID-19 pandemic.

3.  The loan amount shall be determined based on the activity, cash-flow and industry/segment size of beneficiary, subject to a maximum of N25 million for SMEs.

4.  Eligible activities under the Scheme include agricultural value chain activities, hospitality (accommodation and food services), health (pharmaceuticals and medical supplies), airline service providers, manufacturing/value addition, trading and any other income generating activities as may be prescribed by the CBN.

5.  Households can access a maximum of N3 million.

Read also: No fee charged on COVID-19 loan application — CBN

6.  Working capital is a maximum of 25% of the average of the previous 3 years’ annual turnover (where the enterprise is not up to 3 years in operation, 25% of the previous year’s turnover will suffice).

7.  Interest rate is 5% per annum (all inclusive) up to 28th February 2021 and thereafter, the interest on the facility shall revert to 9% per annum (all inclusive) as from 1st March 2021.

8.  Interest rate under the intervention shall be 5% p.a. (all inclusive) up to 28th February 2021 and thereafter, the interest on the facility shall revert to 9% p.a. (all inclusive) as from 1st March 2021.

9.  Term loan shall have a maximum tenor of not more than 3 years with, at least, one-year moratorium.

10. Repayment shall be made on instalment basis by the beneficiaries to the NMFB according to the nature of enterprise and the repayment schedule/work plan provided at the application stage.

Interested and eligible households or MSMEs need to hand in their applications alongside Bank Verification Numbers, business registration (where applicable) and business plan with proof of the opportunity or adverse impact as a result of COVID-19 pandemic directly to NIRSAL Microfinance Bank (NMFB).

Corporate entities seeking to access the facility shall submit their applications to NMFB with clear evidence of the opportunity or adverse impact as a result of COVID-19 pandemic.

On receipt of applications from eligible households, MSMEs or corporate entities, NMFB shall appraise the requests, conduct due diligence applications and forward the applications to the CBN for approval.

Thereafter, CBN reviews the applications and gives final approval for disbursement to NMFB.

 

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