FG Advanced Presidential Loan Disbursement Process
In today’s Latest FGLoanGrant News, the Federal Government of Nigeria has announced the operational launch of the MSME and Manufacturing segment under the prestigious Presidential 200 Billion Naira Intervention Fund.
Recall that the applications for the Presidential Conditional Grant Scheme (PCGS) closed a few days ago. In accordance with that, the Federal government is excited to move forward with the loan disbursement process for the MSME and Manufacturing sectors, aimed at boosting economic growth and industrial development.
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According to FG, this fund is strategically divided, with 75 Billion Naira dedicated to MSMEs and another 75 Billion to the manufacturing sector. The initial disbursement to nano businesses has been met with success, and we are well on our way to supporting 1 million nano businesses throughout the country. Thousands of beneficiaries have already confirmed receipts, with many more to come.
In view of the above, the Federal government is inviting eligible enterprises to join this transformative initiative. To apply, please visit the official application portal at https://fedgrantandloan.gov.ng
Additionally, applicants seeking more detailed information should visit their local state Bank of Industry branch.
Loan Eligibility Criteria (For MSME Loans up to 1 Naira):
1. Eligibility Criteria:
a. Must be an existing business in operation for at least one year or a registered start-up. b. Provide CAC business registration documents.
c. Present Company’s Bank Statement for existing businesses or the chief promoter’s Bank Statement for start-ups.
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d. fulfill required monthly turnover and comply with other requirements as specified by the bank.
2. Security:
a. Provide a Personal Guarantee of the promoter.
b. Agree to BVN Covenant.
c. Adhere to Global Standing instruction (GSI) and other securities as required by the bank.
3. Repayment Frequency:
a. Monthly equal instalments with no moratorium, spanning a 3-year term.
For manufacturers (for loans up to 1 billion Naira):
a. Choose between working capital and asset financing.
b. Maintain at least a 6-month business/corporate banking relationship.
c. Provide additional documentation as required by the bank.
d. Asset financing comes with a 5-year repayment period, and working capital financing includes a 6-month moratorium on principal and interest, followed by a 12-month equal-instalment repayment plan.
