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May 27, 2019

FIRST BANK OF NIGERIA AGRICULTURAL FINANCING

 

COMMERCIAL AGRICULTURE CREDIT SCHEME (CACS)

As an agricultural business owner, you can be a beneficiary of the CACS N200 billion Funds. 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

  • Maximum obligor limit is N2 billion for medium and large scale private sector enterprises and N1billion for state governments.
  • As a participating private sector entity, you must have a minimum farm asset base of N50million (excluding farm land).
  • Irrevocable Standing Payment Order is required in the case of State Governments.

Benefits

  • Single digit interest rate (9% all-in, max).
  • This fund is available till 2025.

Who Can Apply

  • 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

  1. Formal application for a credit Facility.
  2. Certificate of Incorporation.
  3. Memorandum and Article of Association.
  4. Board Resolution to Borrow.
  5. Feasibility Study/Business Plan.

REAL SECTOR SUPPORT FACILITY

If you are a start-up business or a large enterprise working on expansion this special intervention fund of N300 billion established by the Federal Government through the Central Bank of Nigeria (CBN) is available to assist your business’s financing needs by providing low interest, long-tenured funds.

Features

  • Minimum and maximum single obligor limits are N500m and N10b respectively.
  • The scheme would terminate on December 31, 2030.

Benefits

  • Low interest rate to customers (9% all-in, max).
  • Available for start-ups.
  • Long-tenured (up to 15years).

Who Can Apply

  • Large Corporate (wholly owned by & Managed as Nigerian Private Ltd Liability Coy) with Min single obligor limit of N500m.

Required Documents

  1. Formal application for a credit Facility.
  2. Certificate of Incorporation
  3. Memorandum and Article of Association (MEMART)
  4. Board Resolution to Borrow
  5. Feasibility Study/Business Plan.

MICRO SMALL AND MEDIUM ENTERPRISES DEVELOPMENT FUND

If you own a micro, small or medium agricultural enterprise, this loan facility is a special intervention fund provided by the CBN to support your business. You get this loan at a low interest cost and enjoy long-tenured repayment structure; to assist your business in enhancing capacity for employment generation, growth and economic development.

Trusted customers of First Bank seeking to expand their agri-businesses using low priced credit facilities as made possible under the scheme can benefit from this loan.

Features

  • Maximum obligor limit is N50m.
  • Maximum tenure is 5 years.
  • Management experience of at least 3 years in the enterprise to be funded is required.

Benefits

  • Interest rate: 9% (all-in), no other fee can be charged.
  • Credit facility is available either as term loan or overdraft.

Required Documents

  1. Formal application for a credit Facility.
  2. Certificate of Incorporation.
  3. Memorandum and Article of Association (MEMART).
  4. Board Resolution to Borrow.
  5. Feasibility Study/Business Plan.

Who Can Apply

  • SMEs with at least 3yrs Mgt Experience (Max obligor limit of N50m).

CONVENTIONAL TERM LOANS AND OVERDRAFTS

As a First Bank Customer, individual or corporate, if your agricultural business profile falls outside retail or special government intervention funds specification, this loan facility is designed to offer credit facility to business like yours.

Features

  • Maximum tenor of up to 5 years.
  • Minimum single obligor limit of N10m.
  • Interest rate is the prevailing commercial lending rate.

Benefits

  • Flexibility: the structure, tenure and transaction dynamics can be customized to accommodate all types of agricultural projects.

Who Can Apply

  • Medium & Large Corporate (Minimum single Obligor limit of 10m).

Required Documents

  1. Formal application for a credit Facility.
  2. Certificate of Incorporation & Memorandum and Article of Association.
  3. Board Resolution to Borrow.
  4. Feasibility Study/Business Plan.
  5. Business plan including cash flow projection with assumptions, marketing plan, repayment plan, draw down schedule, Profit & Loss and Balance Sheet projections.
  6. Title documents of property being pledged for the lending.
  7. Audited or management account for the past 3 financial years.

To take up these facilities, contact the Agric Finance Desk through Email on: agric@firstbanknigeria.com

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