FGN Agricultural Loan 2023. See the requirements and how to apply for the Federal Government agric loan programme via the FGN agricultural loan portal below. You will also see how to access the FGN agricultural loan application form below.
FGN Agricultural Loan 2023
Are you a farmer looking for a loan to maintain, develop, and purchase new equipment for your farm project? If so, then there is good news!
The Federal Government is set to provide interest-free loans to farmers and you can take advantage of this new development. Read on to know how to apply for the Federal Government agric loan programme with ease.
Top searches for FGN agric loan
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The Federal Government of Nigeria has revealed its plan of providing interest-free loans to farmers across the federation. The plan was disclosed by the Honourable Minister of Agriculture and Rural Development, Sabo Nanono, who stated that his ministry would work with the Central Bank of Nigeria (CBN) in providing the loans.
The Federal Government of Nigeria is set to support farmers with zero-interest loans and agricultural inputs, through the Central Bank of Nigeria and other financial institutions.
This new development will contribute immensely in boosting farmers’ income, boost farmers’ morale, ensure food security, and help boost output in the agricultural sector.
In this article, we will show you all you need to know about the FGN Agricultural Loan and how to apply for the FGN Agricultural Loan without hindrance.
FGN Agricultural Loan Programme
The Federal Government has gone to great lengths to improve the agricultural sector. Agriculture is plan to remain the new oil by 2025. That is why plans have been made to give farmers interest-free loans in order to improve the agricultural sector and ensure an adequate supply of food in the country.
So if you are a farmer and want to take your profession to the next level, then this is the opportunity you have been waiting for. Show you embrace this opportunity by applying for the FGN agric loan today!
The FGN agricultural loan can be obtained from the Bank of Agriculture (BOA), a franchise of the Central Bank of Nigeria (CBN). These loans are provided by the Federal Government of Nigeria. The bank has shared ownership between the Ministry of Finance (60%) and the Central Bank (40%). The Ministry of Agriculture supervises and controls the operations of the bank.
Some of the agricultural loans the federal government gives are:
The CBN Agricultural Loan
The Central Bank of Nigeria provides loans for both intending and existing farmers and the perk about this loan is that the interest rate on it is quite low.
Types of loan CBN offers are:
The Commercial Agriculture Credit Scheme:
To get this loan, you must participate in the following produce:
- Food crops
- Cash crops
- Storage of agrochemicals and
- Supplies of farm input
Micro SME Development Fund:
This is another kind of agric loan you can apply for if you want to expand your agri-business.
Real Sector Support Facility:
This is another way of getting financing for your agricultural venture. The bank repayment plan is long-tenured for up to 15 years.
Some requirements are:
- A business plan
- Memorandum and Article of Association
- Apply formally
- Certificate of incorporation
Bank of Agriculture (BOA)
The Bank of Agriculture is one of the means through which the Federal Government makes loans accessible to the general public. The government owns it while CBN and the Federal Ministry of Finance are investors.
As an entrepreneur, below are things you should keep in mind before applying for a loan.
- You must have a collateral
- You should present a complete plan of your business
- You should have at least 6 months relationship with the bank in terms of making payments into your account.
Types of agricultural loans given by the Bank of Agriculture (BOA) includes:
Micro Credit loans
Grow and earn more-(gem)
Loan application for SME (Individuals)
Agricultural co-operative societies
If you are a member of any of the agricultural cooperative societies, you have the opportunity of getting grants which are provided by banks.
Below are some of the agricultural co-operative societies you can join:
- Youth Empowerment in the Agricultural Program (YEAP)
- All Farmers Association of Nigeria (AFAN)
Loans from commercial banks
You can also obtain agricultural loans based on your preference from any commercial banks across the country.
To access loans from them;
- You need to open an account with them
- Apply and present an application for the loan
- Present a collateral
How to Apply for the Federal Government (FGN) Agric Loan
Before applying for the FGN agricultural loan, you need to know what you need the loan for. You should have good reasons like maintaining your farming business, purchasing new equipment for your farm project, developing new businesses, etc.
After discovering your reason for applying for the Federal Government agric loan, you have to check the available types of loans and the process of applying.
The application process may be different depending on the type of loan you are applying for. However, the best guidance will be from a loan officer in any bank branch of the Bank of Agriculture (BOA). He/she will give you detailed information regarding the FGN agric loan and the application processes to avoid making mistakes.
If you have any questions regarding the FGN agricultural loan programme, feel free to drop your comment using the comment box below. Top Nigerian Jobs team will respond in no time.