Agricultural Business Loans: How To Access AGSMEIS in 5 Quick Steps

Agric-Business for Small and Medium Enterprises Investment Scheme (AGSMEIS) is a federal government empowerment funding initiative run by CBN that encourages the availability of agricultural business loans. This serves as a means of fostering long-term economic growth and job creation.

The Bankers Committee, in collaboration with AGSMEIS, supports and complements the Federal Government’s efforts at promoting agribusiness small and medium enterprises.

Objectives of AGSMEIS

The objectives of AGSMEIS are to:

1. Provide affordable funding to Agri-businesses, Micro, Small, and Medium Enterprises as a stimulant for sustainable economic growth
2. Generate employment opportunities to help resolve the job crisis in Nigeria
3. Improve the managerial capacity of agri-businesses and MSMEs to grow the enterprises, develop the real sector, and promote inclusive growth.

Features of AGSMEIS

The CBN Agric-Business Small and Medium Enterprises Investment Scheme pays a 5% annual interest rate. The AGSMEIS loan term lasts for a period of 7 years. The moratorium has a maximum of 18 months on principal and 6 months on interest

What are the Eligible Sectors for an AGSMEIS Loan?

The eligible sectors for AGSMEIS loan includes:

• Agricultural sector.
• Real sector including Manufacturing, mining, and petrochemicals.
• Service sector including Information and Communication (ICT) and the Creative Industry.
• Other businesses as determined by the Central Bank of Nigeria (CBN).

Requirements for Accessing Agricultural Business Loans for AGSMEIS

1. Bank Verification Number (BVN).
2. Certificate of Training from recognized Entrepreneurship Development Institution (EDI) or evidence of membership of organized private sector
3. Identification Letter from any of the following, Clergy, Village Head, District Head, Traditional Ruler, senior civil servant, etc.
4. Well filled AGSMEIS application form.
5. Evidence of business name registration or certificate of incorporation and filing of annual returns (where applicable) in compliance with the provisions of the Companies and Allied Matters Act (1990).
6. Tax Identification Number (TIN) and current Tax Clearance Certificate TCC) where applicable.
7. Get trained by an Enterprise Development Institute and fill the training form. They will submit your form to CBN.
8. CBN will ask banks to verify your account details and then CBN proceeds to conduct its own assessment

How to Access Agricultural Business Loans for AGSMEIS

1. Get Trained: CBN mandates all applicants to attend training with certified Entrepreneurship Development Institute (EDI) centers spread across the country.
2. Apply For Loan: The Entrepreneurship Development Institute (EDI) will assists you with the AGSMEIS loan application process and help you to arrange supporting documents.
3. Receive Funds: Once CBN receives and certified your AGSMEIS loan application, the AGSMEIS fund is paid into your account. CBN will send feedback to the unqualified candidates.
4. Get Business Support Services: The Entrepreneurship Development Institute (EDI) is obligated to provide business support services for the successful implementation of the AGSMEIS business plan.
5. AGSMEIS Loan Repayment: After a successful AGSMEIS business plan implementation and your business is set and running. It’s time to start selling your products and services to generate revenue and profit to pay back the AGSMEIS loans.

NB: CBN requires that all beneficiaries operate their businesses by keeping proper records, monitoring sales, and controlling expenses to maximize profit and pay back the loan.