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.

With respect to the above circumstance, 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.

 

NMFB Covid19 Loan Support Application Guideline for Households

Targeted household Lending: This offers an avenue for loans to be processed for households based on verifiable evidence of adverse impact of the COVID-19 on livelihood, as the major consideration for lending.

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

NMFB Covid-19 Household Loan Eligibility

• Customers who have agreed to allow NIRSAL Microfinance Bank (NMFB) assess their financial records.
• Evidence of opportunity cost or adverse impact as a result of COVID-19 pandemic

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 NMFB noted as the first loss payee.
• Loan amount must match loan repayment plan and loan purpose.
• Domiciliation of proceeds with NIRSAL Microfinance Bank

Facility Type: Term Loan

Single Obligor Limit: N3m

Loan Tenor: Maximum of 36 months

Moratorium: At least 12 months

Pricing: 5% p.a till February 28, 2021 and 9% subsequently

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

Collateral Requirements

Mini Micro:  N1 – N500,000.00

Applicant must provide the following;

•  1 Acceptable Guarantor with valid ID card (National ID or NIN Slips, International Passport, Driver’s License, Permanent Voter’s Card) and BVN
• Utility Bill for both Applicant and Guarantor

Micro: N500,000.00 – N1.5m

Applicant must provide the following;

• Any describable movable asset with a serial number that can be used for registration on the collateral registry worth at least 70% of the loan amount.
•  1 Acceptable Guarantor with valid ID card such as National ID or NIN Slips, International Passport, Driver license, Permanent Voter’s card & BVN
•  Utility Bill for both Applicant and Guarantor

Micro Plus: N1.5M – 3M

Applicant must provide the following;

• Any describable movable asset with a serial number that can be used for registration on the collateral registry worth at least 70% of the loan amount.
• Comprehensive insurance over the asset.
• 1 Guarantors with valid ID card (National ID or NIN Slips, International Passport, Driver license, Permanent Voter’s card) and BVN
• Utility Bill for both Applicant and Guarantor

Download the complete NMFB Household Loan Application Guideline here

NMFB Covid19 Loan Support Application Guideline for SMEs

Targeted Cash flow-based Lending: This offers an avenue for loans to be processed for customers based on established sufficient cash flow capacity of each customer, as the major consideration for lending.

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.

NMFB Covid-19 SME Loan Eligibility

• The Bank will assess the capacity of the customer through the customer’s business history; via total account statement turnover (with NMFB 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 and 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 NMFB 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: N25m

Loan Tenor: Maximum of 36 months

Moratorium: At least 12 months

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

Collateral Requirement

Mini SME: 3 – 10m

Applicant must provide the following;

• Any describable movable asset with a serial number that can be used for registration on the collateral registry worth 70% of the loan amount.
• Comprehensive insurance over the asset with NMFB as first loss Payee.
• Personal Guarantee of Business Promoter
• Irrevocable domiciliation of proceeds
• Acceptable Guarantor (1)

SME: 10 – 15m

Applicant must provide the following;

• Any describable movable asset with a serial number that can be used for registration on the collateral registry worth 70% of the loan amount. (Comprehensive insurance over the asset with NMFB as first loss) Or;
• Simple Deposit of title documents in perfectible state
• Search will be conducted at customers cost
• (Ground rent will be up to date and all perfection letters to be executed)
• Irrevocable domiciliation of proceeds.
• Personal Guarantee of Business Promoter
• Acceptable Guarantor (2)

SME Plus: 15 – 25m

Applicant must provide the following;

• Simple Deposit of title documents worth 70% of the loan amount in perfectible state
• Search will be conducted at customers cost
• (Ground rent must be up to date and all perfection letters to be executed)
• Personal Guarantee of Business Promoter
• Irrevocable domiciliation of proceeds
• Acceptable Guarantor (2)

Download the complete NMFB SME Loan Application Guideline here

 

How to Apply

Submit An Application

The process is easy.You can begin on your phone, your tablet or your laptop.
Submit applications directly to NIRSAL Microfinance Bank (NMFB) –  https://nmfb.com.ng/covid-19-support with clear evidence of the opportunity or adverse impact as a result of COVID-19 pandemic.

Approval

We review your loan application and forward the application to the CBN for final approval.

STEP 3: Disbursement

CBN reviews applications and gives final approval for disbursement to NMFB

Interested participants, should logon to the nmfb loan application portal at https://nmfb.com.ng/covid-19-support , to apply

Please note that the NMFB Covid-19 loan is open to:

• Households with verifiable evidence of livelihood adversely impacted by COVID-19
• Microenterprises: Existing enterprises with verifiable evidence of business activities adversely affected as a result of the COVID-19 pandemic
• SMEs: Enterprises with bankable plans to take advantage of opportunities arising from the COVID-19 pandemic:

NMFB Covid-19 Loan Support Application Form