How to Access the Federal Government Micro Credit Loans to Small scale Businesses In Nigeria
Are you planning on how to expand an already existing small scale business or about to setup a new one but find it difficult raising the required capital? If yes, then cheer up because there is hope for you to achieve your set goals and objectives!
Recently, the Federal government of Nigeria released sum of 1bilion Naira to the National Economic Reconstruction Fund (NERFUND). This fund is to be made available to small scale business operators in Nigeria as short or long term loans facility to stimulate rapid growth in the
manufacturing of goods/delivery of quality services for local consumption and export.
The amount to given out as micro credit loans is between N100, 000 to 5million Naira at 2% interest rate payable in three years.
The main beneficiary to get this micro credit loans are young graduates/ retirees seeking to start to a business and also medium scale Business operators in Nigeria that are into agro-allied, produce goods and render support services.
However, there are some criteria to be met before this micro credit loan is released to applicants.
BELOW ARE THE REQUIREMENTS FOR ACCESSING THE MICRO CREDIT LOAN.
Your business outfit must fall into micro small and medium scale business category.
Your business outfit must be able to source about 60% of its raw materials, machinery and manpower needed for production of goods within Nigeria.
Your business operation must not be a buying and selling type.
Your business outfit must be duly registered with the corporate affairs Commission of Nigeria as an enterprise or a limited liability company.
The reasons you applied for the micro credit loan must be to expand, diversify your already existing business or to purchase fixed assets for your business e.g equipments, plants and machinery.
Your business must be viable and able to create employment opportunities for Nigerians.
Submit a simple feasibility report and business plan showing the viability or profitability of your business or project.
You must submit a proforma invoice indicating the price and source of getting the proposed plant, equipment and machinery.
You must be able to contribute 10% of the micro credit loan while NERFUND provide the remaining 90%.
You must make available the site plan where the business or plant is to be located.
You must submit the source of your raw materials and quoted prices.
HOW TO APPLY FOR NERFUND MICRO CREDIT LOAN.
To apply for this federal government micro credit loan scheme, pick up an application form at NERFUND office at Plot 1340, Amniu Kano Crescent Wuse II, PMB 319, Garki, Abuja Nigeria.Email.firstname.lastname@example.org , website. www.nerfund.gov.ng, Tel. +234096705604, +23409677725040
After, collecting application forms fill and submit at NERFUND office. You are given 30days of grace period to submit completed form to the office of NERFUND. Then NERFUND will later contact you if your micro credit application is approved.
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