CBN N5 Billion Loan Portal Opens For Enterprenuers, Companies – APPLY NOW

Entrepreneurs and businesses can now apply for a N5 billion loan through the CBN’s loan portal. The Central Bank of Nigeria (CBN) has devised a loan for entrepreneurs and businesses to them access funding and investments. For CBN N5 billion loan registration, go to 100for100ppp.ng/submit-application.

This online news source is aware of the situation.

The Nigerian Central Bank (CBN) just released a list of 28 companies that received N23.2 billion from the first cycle of the 100 for 100 Policy on Production and Productivity? (PPP).

The highest credit ceiling under the program set by the apex bank is N5 billion, which most applications should keep in mind. However, applications worth more over N5 billion may be subject to CBN approval.

This program, which began on November 1, 2021, will pick 100 private sector enterprises with initiatives that have the potential to considerably increase local productivity and Nigeria’s ability to generate foreign exchange.

The program, which will be headed by a bank, will be rolled over every 100 days (quarterly), with a new set of enterprises chosen for finance.

Entrepreneurs in Nigeria who want to acquire finance for their existing enterprises or start-ups can apply for the loan if their firm fits in with the CBN’s goal of stimulating the economy.

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Activities Covered

Manufacturing, agriculture and agro-processing, extractive industries, petro-chemicals and renewables, healthcare and pharmaceuticals, logistics services and trade-related infrastructure, and other CBN-approved businesses are all part of the project.

Existing projects will be the focus of the initiatives, while the CBN may also look into new projects.

Funding

The project will be supported through the CBN’s Real Sector Support Facility-Differential Cash Reserve Requirement (RSFF-DCRR) window, as well as any other window determined by the Bank.

Loan Limit & Type

The 100 for 100 PPP initiative will include long-term loans for equipment and machinery purchases, as well as working capital loans. The maximum amount of money that can be borrowed under this project is N5 billion. For applications worth more than N5 billion, CBN approval is required.

Term loans must be paid off by December 31, 2031, and have a maximum tenor of 10 years, depending on the project’s complexity. The working capital agreement will be for a year, with the option to extend it for up to three years. Term loans will be subject to a two-year moratorium.

Interest Rate

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Up until February 28, 2022, the interest rate will not exceed 5% per year (all-inclusive). Following that, beginning March 1, 2022, interest on the facility will be reduced to 9% per annum (all-inclusive).

Collateral Requirement

The 100 for 100 PPP project accepts collateral under the CBN’s Real Sector Support Facility.

Payback

The monthly interest on the facility will be amortized and transferred to the CBN on a quarterly basis, along with principle repayments.

How To Apply For CBN N5 Billion Loan

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Interested companies are to submit their applications to participating financial instruments (commercial banks) with requisite documentation, which include:

• Evidence of company incorporation with Corporate Affairs Commission (CAC)
• Three years of audited financial reports.
• Evidence of the company’s creditworthiness, including its promoters and directors.
• A minimum of two credit reports of the company and directors.
• Business plan of the underlying project in need of financing.
• Detailed status report on project’s capacity utilization, production output, productivity/efficiency level, employment level, value creation.
• Detailed report on the post-financing economic benefit of the project.
• Applicants shall notify CBN of submitted applications via a dedicated online portal https://100for100ppp.ng/ for tracking and monitoring application status.

How Do You Get The Funds?

• Participating financial institutions (PFIs) shall receive applications and conduct due diligence on applications based on business and credit considerations.
• Upon approval by PFI’s credit committee, the lending bank shall forward eligible private sector companies to CBN.
• The CBN will screen and finance eligible applicants in 100 days and roll over every 100 days.
• The Bank will conduct an internal review of applications to ensure compliance with stipulated requirements.
• Then, the CBN releases the approved sum to PFIs for onward disbursement to selected private sector companies.
• Beneficiaries would be published in National Dailies for the public to confirm details of activities financed.