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Friday, July 1, 2022

How to Get up to N25m loan from NIRSAL MFB

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The Central Bank of Nigeria (CBN) recently introduced a stimulus package through the NIRSAL MFB to support households and Micro, Small and Medium Enterprises (MSMEs) affected by the COVID-19 pandemic.

The Coronavirus Disease (COVID-19) pandemic has led to unprecedented disruptions to global supply chains, sharp drop in global crude oil prices, turmoil in global stock and financial markets, massive cancellation of sporting and entertainment event, lockdown of large swaths movements of persons in many countries, and intercontinental travel bans/restrictions across critical air routes across the world.

These outcomes have had severe consequences on households’ livelihoods and business activities, resulting from drop in global demand, declined consumer confidence and slowdown in production.

In this respect, the Central Bank of Nigeria (CBN) introduced the N50 billion Targeted Credit Facility (TCF) as a stimulus package to support households and Micro, Small and Medium Enterprises (MSMEs) affected by the COVID-19 pandemic

Who is eligible?

Households with verifiable evidence of livelihood adversely impacted by COVID-19, existing enterprises with verifiable evidence of business activities adversely affected as a result of the COVID-19 pandemic and SMEs with bankable plans to take advantage of opportunities arising from the COVID-19 pandemic are all eligible for the loan.

HOUSEHOLD LOAN APPLICATION GUIDELINE
Target Market: The fund is targeted at households with verifiable evidence of livelihood adversely impacted by COVID-19.

Documentation Required:
Loan application letter, duly completed application form, Duly executed Guarantor form.

A valid means of ID (national ID, driver’s license, voter’s card or international passport).
Current utility bill.

2 recent passport-size photographs

BVN

Terms & Conditions
Flexible and moveable collateral options shall be admitted and registered under the Collateral Registry Bureau.

Forfeiture Undertaking and Power of Attorney agreement to be signed by customer, giving NMFB rights to take over pledged assets in instance of loan default.

Insurance cover on the asset financed or asset availed as flexible collateral, with the NIRSAL MFB noted as the first loss payee.

Loan amount must match loan repayment plan and loan purpose.

Domiciliation of proceeds with NIRSAL Microfinance Bank.

Facility
Term Loan

Single Obligor Limit
N3 million

Loan Tenor
Maximum of 36 months

Moratorium
At least 12 months

Pricing
5% per annum till February 28, 2021 and 9% subsequently

Repayment Structure
Installment basis, according to the nature of enterprise.

See more details here

SME LOAN APPLICATION GUIDELINE
Target Market
The fund is targeted at credit worthy businesses with good track record in their line of business, and who meet the acceptable cash-flow requirements and whose businesses are demonstrably adversely affected by the COVID-19 pandemic.

Eligibility
The Bank will assess the capacity of the customer through the customer’s business history; via total account statement turnover (with NIRSAL MFB and other banks), however this would not be the only tool used to determine customer’s eligibility.

(Note: Where a review of the customer’s account statement raises fundamental issues, the bank reserves the right to make decisions as considered appropriate).

Customers who have agreed to allow the NMFB Credit unit assess their financial records.
Customer must show that the request is justified by the level of sales proceeds evident in the account statement turnover.

Also, the customer’s books (ledger) should also justify the numbers.

Evidence of opportunity cost or adverse impact as a result of COVID-19 pandemic.

Documentation Required

Loan application letter

Duly completed application form

Guarantor form

A valid means of ID (national ID, driver’s license, voter’s card or international passport)

Current utility bill (Applicant & Guarantor)

2 recent passport-size photographs

BVN

Terms & Conditions

Flexible and moveable collateral options shall be admitted and registered under the Collateral Registry Bureau.

Forfeiture Undertaking and Power of Attorney agreement to be signed by customer, giving NMFB rights to take over pledged assets in instance of loan default.

Insurance cover on the asset financed or asset availed as flexible collateral, with the NIRSAL MFB noted as the first loss payee.

Customer must have a verifiable supplier/s who he/she must have had a business relationship with for a minimum of 6 months.

Loan amount must match loan repayment and 5% p.a till February 28, 2021 and 9% subsequently loan purpose.

Domiciliation of proceed with NIRSAL MFB.

Facility Type
Term Loan

Single Obligor Limit
N25 million

Loan Tenor
Maximum of 36 months

Moratorium
At least 12 months

Pricing Repayment Structure
Installment basis, according to the nature of enterprise.

See more details here

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