The CBN 2021 Commercial Agriculture Credit Scheme (CACS) N200 Billion Fund Application is on now

The CBN Commercial Agriculture Credit Scheme 2021 to boost agricultural business owners, you can be a beneficiary of the CACS N200 billion Fund. This the initiative of the CBN and Federal Ministry of Agriculture to help the development of the agricultural sector in Nigeria by allowing business owners especially in the development of agricultural business to access loans support to their businesses.

REQUIREMENTS

  • The maximum obligor limit is N2 billion for medium and large-scale private sector enterprises while there are no limits for state governments.
  • As a participating private sector entity, you must have a minimum farm asset base of N50million (excluding farmland).
  • The irrevocable standing payment order is required in the case of state governments.

THE CBN COMMERCIAL AGRICULTURE CREDIT SCHEME (CACS) BENEFITS

  • Single-digit interest rate (9% all-in, max).
  • This fund is available till 2025.

Who Can Apply for CBN 2021 Commercial Agriculture Credit Scheme

Medium or Large Scale Commercial Farms involved in cultivating crops, rearing livestock, fish farming, etc.

 The Limited Liability Companies in agricultural production, storage, processing, marketing, and enterprise development.

State Governments and the FCT (for on-lending/special intervention to small-scale farmers).

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REQUIRED DOCUMENTS

  • Formal application for a Credit Facility.
  • Certificate of Incorporation.
  • Memorandum and Article of Association.
  • Board Resolution to Borrow.
  • Feasibility Study/Business Plan.

To access the loan, kindly contact the Agric Finance Desk through Email at [email protected]

 1. What is the scheme all about?

A special credit intervention fund of N200billion was created by the Federal Government of Nigeria through the Central Bank of Nigeria  (CBN) to boost the development of the agricultural sector.

2. To be eligible to access the loan?

The Medium or Large Scale Commercial Farms that are involved in animal husbandry, cultivation of crops,  fish farming, etc.

The Limited Liability Companies are involved in the entire value chain of agricultural production, processing, storage, marketing, and development.

State Governments and the FCT (for on-lending).

3. What is the interest rate?

Maximum of 9% in all

4. How do I qualify for this facility?

A start-up business is not eligible to access/apply for the loan.

For private entities, you must have a minimum asset base of N50million (excluding land).

For State Government, Irrevocable Standing Payment Order (ISPO) is required.

5. What are the required documents?

  • Formal application for a credit facility.
  • Certificate of Incorporation.
  • Memorandum and Article of Association.
  • Board Resolution to Borrow.
  • Feasibility Study/Business Plan.
  • For State Government, list and addresses of co-operatives and farms should be included.
  • Other documentation is requested after the visitation of the project.

6.  Can a business name apply?

You have to be a registered incorporated company having a management structure with a minimum experience of 3 years.

7.  Can I apply at any branch?

Yes, you can walk into the nearest First Bank of Nigeria Plc (FBN) branch to apply.

8. How soon can I get my loan approved?

This depends on different variables like; your business plan, cash flow, swift provision of accurate documentation, and adequate collateral.

9.  How soon can I get the facility after approval?

This depends on the duration of receipt of funds from CBN after due diligence.

10.  Can I get a longer tenor for my facility?

Tenor is not fixed, it however depends on cash flow projections.

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