How To Access N10m Agribusiness Loan

Do you want to know how to access the N10m agribusiness loan?

The Agribusiness Small and Medium Enterprises Investment Scheme (AGSMEIS) is an initiative of the Bankers’ Committee. This platform seeks to support the efforts of the Federal Government to promote investment in agriculture. The platform aims at making an impact through small and medium enterprises. Consequently, this would help generate employment and enhance economic development.

Hence, you can borrow up to a maximum of N10 million under the scheme.

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Apply for N10m loan

The scheme mandates every Deposit Money Bank (DMB) to set aside some of its annual profit. They are to set aside five (5) per cent of their Profit After Tax (PAT) to fund the scheme. Consequently, the fund, which is escrowed at the Central Bank of Nigeria, had accrued N26 billion as at December 2017.

Who is qualified to access this fund, and what are the requirements for accessing it?

Almost any Small Business Owner can access this fund. This is regardless of whether they are embarking on a start-up, expanding an existing business or reviving an ailing business. However, the business must be in, or connected with the Agriculture Value Chain:

  • Production
  • Inputs
  • Storage
  • Processing
  • Logistics
  • Marketing

What is the application process for accessing the fund? First of all, you are expected to attend a certified training programme at the Entrepreneurship Development Centre. This centre is approved by the Central Bank of Nigeria (CBN). This training must be done before applying for the loan.

Hence, some of the CBN-approved Entrepreneurship Development Centres are:

  • Lagos Business School.
  • House of Tara.
  • Fate Foundation.
  • CBN-Enterprise Development Centre, Ibadan.
  • Agric Thrive.

After successful completion of the training and certification programme at the Centre, you will prepare a Business Plan for the approval of the Centre. This plan will then be forwarded to the CBN.

The CBN will then review your Business Plan and invite you for an interview. If your business plan satisfies the CBN and you pass its interview, the funds will be credited to your account. Where the funding requires capital items, direct payment will be made to the vendor’s account.

What are the terms of the loan?

You will be granted the loan at an interest rate of five (5) per cent per annum. You will be required to repay the loan over a period not longer than seven (7) years. Subject to the nature of the business, and/or your preferred re-payment plan, you may also be allowed a moratorium.

And you are not required to offer collateral or provide a guarantor before you can benefit from this loan scheme.

What then are you waiting for, if you are a Small Business Owner operating in, or wish to enter, the agribusiness sector, and need funding?

Furthermore, you may wish to read the AGSMEIS Guidelines here.

Should you need help in accessing the Agribusiness Small and Medium Enterprises Investment Scheme, visit the SME Clinic at