In line with the CBN’s decision to extend a non-interest window to businesses and households that have been impacted negatively by the Covid-19 pandemic, NIRSAL Microfinance Bank’s portal is now live for applicants who are eligible under this scheme to apply.
How to apply for CBN Covid-19 loan
The only portal to apply for the CBN Covid19 Loan is https://nmfb.com.ng/
Who is eligible for CBN Covid19 Loan?
MSME’s with 1-5 staff and verifiable evidence of business activities adversely affected as a result of the pandemic with evidence of job protection for its staff
Hospitality businesses, health (pharmaceuticals and medical supplies) Airline service providers, manufacturing/value addition, trading and any other income-generating activities as may be prescribed by CBN and are Shari’ah compliant.
The financing limit for MSME’s is N2,500,000 while Household is N1,000,000.
Apply via our website at www.nmfb.com.ng
For further enquiries, contact 09010026900.
How to Access the N50Billion CBN COVID-19 Loan
There are two modalities here to consider. According to the CBN’s circular issued on March 23, 2020, the modalities are applicable to either Households/MSMEs or Corporate entities.
- The first step is for an eligible household to submit an application to NIRSAL MFB, which must, among others, contain BVN number, business registration (where applicable) and business plan with clear evidence of the opportunity or adverse impact as a result of COVID-19 pandemic
- NMFB shall appraise and conduct due diligence applications
- Upon satisfactory appraisal of application, NMFB shall forward the applications to the CBN for final approval,
- Then, CBN reviews applications and gives final approval for disbursement to NMFB.
Applicants must endeavor to provide the documents listed above which are mostly basic. If you do not know how to write a business plan, you can get someone to help you with it.
For corporate entities
- Like their MSMEs counterparts, applications are submitted to NMFB with clear evidence of the opportunity or adverse impact as a result of COVID-19 pandemic
- Also, NMFB shall appraise and conduct due diligence applications
- After a satisfactory appraisal of the application, NMFB shall forward the applications to the CBN for final approval.
- CBN reviews applications and gives final approval for disbursement to NMFB.
Loan Terms and Conditions
There are different criteria used to determine the loan amount that is disbursed to different eligible participants and segments. They are:
- SMEs – The loan amount shall be determined based on the activity, cash flow and industry/segment size of beneficiary subject to a maximum of N25 million for SMEs
- Households – They can access a maximum of N3 million. Working capital shall be a maximum of 25% of the average of the previous 3 years’ annual turnover. But where the enterprise is not up to 3 years in operation, 25% of the previous year’s turnover will suffice.
The CBN in its circular on the guidelines for the implementation of this facility stated that the interest rate under the intervention shall be 5% per annum (all-inclusive) up to February 28, 2021, and thereafter, the interest on the facility shall revert to 9% per annum (all-inclusive) as from March 1, 2021.
The guideline states that the loan for working capital shall be for a maximum of one year, with no option for rollover. As for the term loan, a maximum tenor of not more than 3 years with, at least, one-year moratorium.
Collateral Requirement for CBN Loan
The guideline states that the collateral to be pledged by the beneficiaries under the programme shall be as may be acceptable by NIRSAL Micro Finance Bank, but may include;
- Moveable asset(s) that is duly registered on the National Collateral Registry (NCR);
- Simple deposit of title documents, in perfect state
- Irrevocable domiciliation of proceeds
- Two acceptable Guarantor and Personal Guarantee of the promoter of the business
- Life insurance of the Key Man, with NMFB noted as the First Loss Payee
- Comprehensive insurance over the asset.
The exit date of this intervention is December 31, 2024. It should be noted that this framework from CBN shall be subject to review from time to time as may be deemed necessary by the apex bank.