A Guide To Apply for CBN NIRSAL Covid-19 Loan
The COVID-19 pandemic has undeniably cast a significant shadow over businesses, households, and various aspects of daily life in our country. In response to this unprecedented challenge, the Central Bank of Nigeria (CBN) has taken proactive steps to aid business owners and households in their recovery efforts from the adverse effects of the pandemic.
This post aims to guide you through the process of applying for the CBN NIRSAL COVID-19 Loan in Nigeria. The emergence of the Coronavirus disease (COVID-19) led to an abrupt disruption in the production and distribution of goods, and it wreaked havoc in financial markets. The pandemic also resulted in the closure of entertainment and sporting venues, as well as widespread restrictions on movement throughout the country. Regrettably, many individuals lost their jobs due to these circumstances, and in certain regions, the cost of goods and services became increasingly burdensome. The pandemic also dealt a severe blow to numerous business activities.
Recognizing the extensive impact of these consequences on livelihoods and businesses, the Central Bank of Nigeria has introduced a N50 billion Targeted Credit Facility (TCF). This financial package is specifically designed to assist households and businesses, particularly Micro, Small, and Medium Enterprises (MSMEs), that have been adversely affected by the pandemic. It stands as a beacon of hope in these challenging times, reflecting the CBN’s commitment to supporting those in need and fostering economic recovery in our nation.
Eligibility for NIRSAL Covid-I9 Loan
Below are the eligibility criteria for the NIRSAL Covid-19 Loan.
- Households that has concrete and conformable evidence of livelihood that is severely affected by Covid-19.
- Existing enterprises with genuine and conformable evidence of the adverse effect of Covid-19 on their businesses.
- Enterprises with reliable plans that is profitable regarding the opportunities brought about by the Covid-19 pandemic.
Interest rate of NIRSAL COVID-19 loan
The NIRSAL COVID-19 loan, a vital intervention during these trying times, comes with an interest rate of 5% per annum (inclusive of all charges) up to February 28, 2021. However, it’s crucial to note that starting from March 1, 2021, the interest rate for this facility will adjust to 9% per annum (inclusive of all charges). This interest rate change is an important consideration for those seeking this financial assistance.
The validity of the loan
You might be wondering about the loan durations. Well, when it comes to the working capital loan, it’s available for a maximum period of one year, and there are no options for extending or rolling over the loan. On the other hand, for the term loan, it comes with a maximum duration of three years. The term loan also provides for a moratorium of at least one year before you start repaying the principal and interest.
Read Also: 10 Top Federal Government Interest-free Loans
Accessible amount
You might be curious about how much you can actually borrow. Well, the accessible loan amount depends on the categories you fall into:
- Households: If you’re a household, you have the opportunity to request a loan of up to N3 million. In other words, the maximum amount available to households is N3 million.
- Small and Medium Enterprises (SMEs): For SMEs, the loan amount is determined based on various factors, such as your business activities, the size of your enterprise or industry, and your cash flow. However, the maximum amount accessible to SMEs is N25 million. Additionally, the working capital can be a maximum of 25% of your turnover from the previous three years. If your enterprise has been in operation for less than three years, this 25% will be calculated based on the turnover from the previous years. This approach ensures that the loan amount is tailored to the specific circumstances of your business.
NIRSAL COVID-19 loan application procedures
Application: To kick-start the process, you should prepare and submit an application letter to the NIRSAL Microfinance Bank (NMFB). Along with your application letter, be sure to include valid evidence demonstrating the adverse impact of the COVID-19 pandemic on your circumstances or, alternatively, the opportunities that have arisen as a result of the pandemic.
Approval: Once your application is received, it undergoes a thorough examination. Subsequently, it’s forwarded to the Central Bank of Nigeria (CBN) for final approval. The CBN plays a pivotal role in evaluating and approving applications, ensuring that they meet the necessary criteria.
Payout: After your application successfully clears the evaluation and gains final approval from the CBN, the authority body responsible for assessing applications, the approved funds are disbursed to you through the NIRSAL Microfinance Bank (NMFB). This streamlined process ensures that those in need receive the necessary financial support efficiently.
How to Apply for NIRSAL COVID-19 Loan
To begin your application for CBN NIRSAL COVID-19 Loan, kindly go to https://nmfb.com.ng/covid-19-support, and fill the loan application form.
