How to apply for FG 75bn loan for MSME eligibility and procedures to be disbursed in January 2024
This initiative aims to provide easier access to financing many local businesses in Nigeria with the advantage of lower interest rates. This ₦75 billion loan program was made for Micro, Small, and Medium Enterprises (MSMEs) and was introduced by the Nigerian government to be offered in January 2024.
Eligibility Criteria for FG 75bn loan for MSME in Nigeria
The FG 75bn loan program had specific eligibility requirements depending on the MSME type:
For Existing Businesses
- In operation for at least one year.
- Must provide a Certificate of Incorporation (CAC) for business registration.
- Submit company bank statements for the past year.
- Meet specific monthly sales targets (exact figures not publicly available).
For Startups
- Registered business with a CAC document.
- Unable to provide a company bank statement, the chief promoter’s personal bank statements might be required.
For Manufacturers (Higher Loan Amounts)
- In addition to the requirements for Existing Businesses, manufacturers needed to have:
- A good business relationship with a bank for at least 6 months.
- Documentation as requested by the specific bank they apply through.
For Industry or Business Limitations
There is no public information about limitations on specific industries or business activities yet.
For Minimum Business Registration
- Existing Businesses: Minimum of one year in operation.
- Startups: Must be registered businesses.
Banking Relationships and Financial History
- Existing Businesses: Required to submit company bank statements.
- Startups: Might need to submit the chief promoter’s personal bank statements if a company account isn’t established.
- Manufacturers: Needed a good banking relationship for at least 6 months.
Application Process for the FG 75bn loan program for MSMEs
Unfortunately, the FG 75bn loan program for MSMEs likely has a closed application window since disbursement began in January 2024. However, the following information might be helpful if the program is continued by the end of this year:
Application Process (Assuming an Online System):
- Check Eligibility: Before applying, ensure your business meets the requirements outlined earlier (e.g., minimum registration period, industry restrictions).
- Gather Documents:
- Certificate of Incorporation (CAC) – Obtain from the Corporate Affairs Commission.
- Bank Statements (Company or Personal): Retrieve from your bank (existing businesses) or personal accounts (startups).
- Additional Documents (Manufacturers): Specific requirements might vary by bank. Contact your preferred bank for details.
- Online Portal: Try to locate the government’s official application portal.
- Complete the Application: Carefully, fill out the form online, ensuring all information is accurate and complete.
- Submit Application and Documents: Upload the required documents electronically through the online portal.
Loan Disbursement
Disbursement details for the FG 75bn loan program are likely unavailable since the program started disbursing funds in January 2024. However, here’s a little idea of what the process might have looked like based on similar programs in the past for approved applicants:
Disbursement Process
- Approval Notification: you will have received an official notification from the program or the Bank of Industry (BOI) If your application was successful.
- Loan Agreement: You might have been required to sign a loan agreement outlining the terms and conditions, including interest rate, repayment schedule, and potential penalties for late payments.
- Account Verification: The program or BOI might have verified your bank account details to ensure an accurate transfer of funds.
- Fund Transfer: Once all steps are completed, the loan amount will likely be deposited directly into your business bank account.
Timelines
Currently, there isn’t publicly available information about specific timelines for receiving funds after loan approval. It could potentially range from a few days to a few weeks. Although we will keep updating this information as soon as the next phase starts.
Additional Steps
After receiving the loan, you would likely be required to:
- Maintain Proper Records: Keep detailed records of how you utilize the loan funds.
- Meet Repayment Schedule: Make repayments on time as per the agreed-upon schedule.
- Reporting (if applicable): The program or BOI might require periodic reports on how you’re using the loan to grow your business.
Has the federal government commences loan disbursement for MSME and manufacturing sectors?
According to our official news source the Cable, the federal government began disbursing loans to MSMEs and manufacturing sectors in April 2024 under the N200 billion Presidential Intervention Fund. This fund allocates N75 billion specifically for MSMEs.
Since it is July 2024 now, it’s possible that the initial disbursement phase is complete. It’s always best to consult official government channels for the latest information on program availability and application processes.
Conclusion
Stay informed to get the latest information as regards the FG 75bn loan program opportunity for MSMEs in early 2024. While this specific program might be closed, the Nigerian government’s commitment to supporting business growth is evident. check-in from time to time as we will keep you updated as to when this loan’s next phase will be initiated again.
