Federal Government Palliative Loan: The Federal Government, in collaboration with the State Governments, Honourable Ministers, NASME (Nigerian Association of Small and Medium Enterprises), Senators, and House of Representative Members, will use the Federal Government’s selection criteria below to shortlist the beneficiaries from their constituents.
The target beneficiaries of the Federal Government Palliative Loan are 70% women and youth, 10% people with disabilities, and 5% senior citizens, while the remaining 15% is distributed to other demographics.
The government of Nigeria has acknowledged the critical role that nanobusinesses play in boosting employment and the country’s economy. They have started a program that offers grants and loans totaling N50,000 in order to empower these small businesses. This initiative might be just what you need if you are a nanobusiness owner trying to expand your enterprise.
Federal Government Palliative Loan Eligibility
A) Eligibility Criteria
Existing businesses must be in operation for one (1) year.
Start-ups must be registered business
Provide CAC business registration documents.
Company’s Bank Statement(s) for a period of one (1) year (for existing businesses) or Chief Promoter’s (Director or Business Owner) Bank Statement(s) for a period of one (1) year (for startups).
Have required monthly turnover and other things as may be requested by the bank.
B) Security
Personal Guarantee of the promoter
Acceptance of BVN Covenant (Global Standing Instruction-GSI) and any other thing that may be required by the bank
C) Repayment Frequency
Monthly equal installment (no moratorium) over a period of 3 years
Manufacturers up to N1billion (Working Capital or Asset Financing)
A) Eligibility Criteria
At least 6months months of business or corporate banking relationship
Provide CAC business registration documents
12 months bank statement for another bank
Other documentation may be required by the bank.
B) Security
As may be required by the bank
C) Repayment term:
i) Asset Financing
6 Months moratorium on principal and interest, 5 years repayment period for asset financing only
ii) Working Capital Financing
12 months of equal installment of principal and interest
How to apply:
The application process for the N50,000 grants and loans is straightforward:
Visit the official website: The application portal is hosted on the website fedgrantandloan.gov.ng.
Click “Apply for Grant.” This will take you to the online application form.
Fill out the form accurately.
Provide all the required information about your business, including its name, location, registration details, financial statements, and growth plans.
Attach supporting documents: These may include copies of your business registration certificate, financial statements, passport photograph, and BVN verification document.
Submit your application: Once you’ve reviewed and confirmed everything is correct, submit your application electronically.
