As an agricultural business owner, you can be a beneficiary of the CACS N200 billion Fund. This facility was established by the CBN and Federal Ministry of Agriculture to fast-track the development of the agricultural sector in Nigeria by giving loans support to businesses like yours.
Features
- The maximum obligor limit is N2 billion for medium and large-scale private sector enterprises while there are no limits for state governments.
- As a participating private sector entity, you must have a minimum farm asset base of N50million (excluding farmland).
- Irrevocable Standing Payment Order is required in the case of State Governments.
CBN Commercial Agriculture Credit Scheme (CACS) Benefits
- Single-digit interest rate (9% all-in, max).
- This fund is available till 2025.
Who Can Apply for CBN 2021 Commercial Agriculture Credit Scheme
- Medium or Large Scale Commercial Farms involved in cultivation of crops, rearing of livestock, fisheries, etc.
- Limited Liability Companies involved in agricultural production, storage, processing, marketing and enterprise development.
- State Governments and the FCT (for on-lending/special intervention to small-scale farmers).
Required Documents
- Formal application for a credit facility.
- Certificate of Incorporation.
- Memorandum and Article of Association.
- Board Resolution to Borrow.
- Feasibility Study/Business Plan.
To apply for any of our facilities contact the Agric Finance Desk through Email on: agric@firstbanknigeria.com
FREQUENT ASKED QUESTION (FAQ)
What is the scheme about?
- Special credit intervention fund of N200billion created by the Federal Government of Nigeria through the CBN to fast track the development of the agricultural sector.
2) Who Can Participate?
- Medium or Large Scale Commercial Farms involved in cultivation of crops, rearing of livestock, fisheries, etc.
- Limited Liability companies involved in the entire value chain of agricultural production, storage, processing, marketing and enterprise development.
- State Governments and the FCT (for on-lending).
3) What is the interest rate?
- Maximum of 9% all-in
4) How do I qualify for this facility?
- Your project should not be a start-up.
- For private entities, you must have minimum asset base of N50million (excluding land).
- For State Government, Irrevocable Standing Payment Order (ISPO)is required.
5) What are the required documentation?
- Formal application for a credit Facility.
- Certificate of Incorporation.
- Memorandum and Article of Association.
- Board Resolution to Borrow.
- Feasibility Study/Business Plan.
- For State Government, list and addresses of co-operatives and farms should be included.
Other documentations are requested after project visit.
6) Can a business name apply?
- You have to be a registered incorporated company having a management structure with minimum experience of 3years.
7) Can I apply at any branch?
- Yes, you can walk in to the nearest FBN branch to apply.
8) How soon can I get my loan approved?
- This depends on different variables like; your business plan, cash flow, swift provision of accurate documentations and adequate collateral.
9) How soon can I get the facility after approval?
- This depends on duration of receipt of funds from CBN after due diligence.
10) Can I get a longer tenor for my facility?
- Tenor is not fixed, it however depends on cash flow projections.
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