Apply for CBN MSME Development Fund N220 Billion Loan For Start-up

❗ YOU'RE NOT LOGGED IN:   LOGIN or REGISTER

The CBN launched the MSME Development Fund on August 15, 2013, with a share capital of N220 billion. The Fund was established in recognition of the significant contributions of the Micro, Small and Medium Enterprises (MSME) sub-sector to the economy and the existing huge financing gap.

Ten (10) per cent of the Fund has been devoted to developmental objectives such as grants, capacity building and administrative costs while ninety (90) per cent commercial component will be released to Participating Financial Institutions(PFIs) at 2% for on-lending to MSMEs at a maximum interest rate of 9% per annum.

Eligible activities to be financed include agricultural value chain, services, cottage industries, artisans, trade and commerce and any income-generating business as may be prescribed by the CBN from time to time.

SEE ALSO: COVID-19 Economic Injury Disaster Loan 2021 – How to Apply

Objectives of the MSMEDF

The broad objective of the Fund is to channel low-interest funds to the MSME sub-sector of the Nigerian economy through PFIs to:

  • Enhance access by MSMEs to financial services;
  • Increase productivity and output of microenterprises;
  • Increase employment and create wealth; and
  • Engender inclusive growth
SEE ALSO: CBN Agricultural Loan 2021 – How to Apply Online

Benefits of the MSMEDF to Some Stakeholders

a) PFIs

The Developmental Components will be utilized for capacity building of staff of PFIs, research and provision of other financial services infrastructure

b) MSMEs

Long term single-digit loans at 9% p.a. This has resulted in reduced cost of borrowing which will impact positively on the earnings of the MSMEs

c) Microfinance Sub-sector

The Fund will provide liquidity for the sub-sector and result in general improvement of the financial system stability

d) General Public

Job creation

SEE ALSO: CBN reopens N50bn COVID loan portal for businesses, households

Eligible Activities under the MSMEDF

In line with the provisions of the Revised Microfinance Policy, Regulatory and Supervisory Framework for Nigeria, enterprises to be funded under the Scheme include:
a) Micro Enterprises
b) Small and Medium Enterprises (SMEs)
The following are eligible activities under the Fund:
Microenterprises

  • Agricultural value chain activities
  • Cottage Industries
  • Artisans
  • Services
  • Renewable energy/energy efficient product and technologies
  • Trade and general commerce
  • Other economic activity as may be prescribed by the CBN

Note: Only 10% of the Commercial component of the Fund shall be channelled to trade and commerce.

SEE ALSO: Apply: Mpower Financing International Student Loan 2021

How to Apply

Click here to download & read the application guide. Please note that CBN is not selling any application form in this regard. So read the guide after downloading it and visit any of the listed banks therein for further actions.

Visit the OFFICIAL PAGE for further information. DROP COMMENTS for questions/suggestions.

Is this article helpful? Kindly share below:

   

📵 Read Offline with our Web App
Get latest opportunities on WhatsApp
Micheal Ace

About the Author: Micheal Ace

Simply Ace, Founding Editor & CEO of ACEworld Publishers. I'm obsessed with growth. Join me on Twitter .

Got a question/Suggestion? Let's talk!