Blog

Access N25 Million Targeted Credit Facility (TCF) from CBN for COVID-19

Access the Targeted Credit Facility (TCF) for COVID-19 from CBN (N50 billion)

Access the Targeted Credit Facility (TCF) for COVID-19 from CBN (N50 billion)

Is your household/business affected by COVID-19, Access up to N25 Million Targeted Credit Facility for COVID-19

The Central Bank of Nigeria (CBN) introduces a stimulus package to support households and Micro, Small and Medium Enterprises (MSMEs) affected by the COVID-19 pandemic

Concept of Targeted Credit Facility (TCF)

The Coronavirus Disease (COVID-19) pandemic has led to unprecedented disruptions to global supply chains, sharp drop in global crude oil prices, turmoil in global stock and financial markets, massive cancellation of sporting and entertainment event, lockdown of large swaths movements of persons in many countries, and intercontinental travel bans/restrictions across critical air routes across the world.

These outcomes have had severe consequences on households’ livelihoods and business activities, resulting from drop in global demand, declined consumer confidence and slowdown in production.

In this respect, the Central Bank of Nigeria (CBN) introduced the N50 billion Targeted Credit Facility (TCF) as a stimulus package to support households and Micro, Small and Medium Enterprises (MSMEs) affected by the COVID-19 pandemic.

How It Works

STEP 1: Submit An Application

The process is easy. You can begin on your phone, your tablet or your laptop.

Submit applications directly to NIRSAL Microfinance Bank (NMFB) with clear evidence of the opportunity or adverse impact as a result of COVID-19 pandemic.

STEP 2: Approval

We review your application and forward the application to the CBN for final approval.

STEP 3: Disbursement

CBN reviews applications and gives final approval for disbursement to NMFB

Who Is Eligible?

  • Households
  • Micro, Small and Medium Enterprises (MSMEs)
  • Corporate Enterprises

Households

Households with verifiable evidence of livelihood adversely impacted by COVID-19

Household Loan Application Guidelines

Targeted household Lending: This offers an avenue for loans to be processed for households based on verifiable evidence of adverse impact of the COVID-19 on livelihood, as the major consideration for lending.

Target Market: The fund is targeted at households with verifiable evidence of livelihood adversely impacted by COVID-19

Eligibility:

  • Customers who have agreed to allow NIRSAL Microfinance Bank (NMFB) assess their financial records.
  • Evidence of opportunity cost or adverse impact as a result of COVID-19 pandemic

Documentation Required

  • Loan application letter
  • Duly completed application form
  • Duly executed Guarantor form
  • A valid means of ID (national ID, driver’s license, voter’s card or international passport)
  • Current utility bill
  • 2 recent passport-size photographs
  • BVN

Terms and Conditions

  • Flexible and moveable collateral options shall be admitted and registered under the Collateral Registry Bureau.
  • Forfeiture Undertaking and Power of Attorney agreement to be signed by customer, giving NMFB rights to take over pledged assets in instance of loan default.
  • Insurance cover on the asset financed or asset availed as flexible collateral, with the NMFB noted as the first loss payee.
  • Loan amount must match loan repayment plan and loan purpose.
  • Domiciliation of proceeds with NIRSAL Microfinance Bank

Facility Type: Term Loan
Single Obligor Limit: N3m
Loan Tenor: Maximum of 36 months
Moratorium: At least 12 months
Pricing: 5% p.a till February 28, 2021 and 9% subsequently
Repayment Structure: Installment basis, according to the nature of enterprise

A. Mini Micro (N1 – N500,000.00)

Applicant must provide the following;

  • 1 Acceptable Guarantor with valid ID card (National ID or NIN Slips, International Passport, Driver’s License, Permanent Voter’s Card) and BVN
  • Utility Bill for both Applicant and Guarantor

B. Micro (N500,000.00 – N1.5m)

Applicant must provide the following;

  • Any describable movable asset with a serial number that can be used for registration on the collateral registry worth at least 70% of the loan amount.
  • 1 Acceptable Guarantor with valid ID card such as National ID or NIN Slips, International Passport, Driver license, Permanent Voter’s card & BVN
  • Utility Bill for both Applicant and Guarantor

C. Micro Plus (N1.5M – 3M): Applicant must provide the following;

  • Any describable movable asset with a serial number that can be used for registration on the collateral registry worth at least 70% of the loan amount.
  • Comprehensive insurance over the asset.
  • 1 Guarantors with valid ID card (National ID or NIN Slips, International Passport, Driver license, Permanent Voter’s card) and BVN
  • Utility Bill for both Applicant and Guarantor

MSMEs

Existing enterprises with verifiable evidence of business activities adversely affected as a result of the COVID-19 pandemic

Download the MSMEs Application Guideline here

Corporate Enterprises

Enterprises with bankable plans to take advantage of opportunities arising from the COVID-19 pandemic

Download the Application Guideline for Corporate Entrerprises here

Frequently Asked Questions (FAQs)

What is the interest rate?

Interest rate under the intervention is 5% p.a. (all inclusive) up to 28th February 2021 and thereafter, the interest on the facility will revert to 9% p.a. (all inclusive) as from 1st March 2021.

How long is the loan for?

Working capital will be for a maximum period of one year, with no option for rollover. Term loans have a maximum tenor of not more than 3 years with, at least, one-year moratorium.

How much can I access?

Households: Can access a maximum of N3 million

Loan amount to SMEs shall be determined based on the activity, cashflow and industry/segment size of beneficiary, subject to a maximum of N25 million.

Working capital shall be a maximum of 25% of the average of the previous 3 years’ annual turnover. (where the enterprise is not up to 3 years in operation, 25% of the previous year’s turnover will suffice).

For more details

Phone: 09010026900 – 7 Monday to Friday (8am – 5pm)


Find and apply to legit jobs here


Connect with Jobrem Tech on Telegram

2 thoughts on “Access the Targeted Credit Facility (TCF) for COVID-19 from CBN (N50 billion)”

Leave a Reply

Your email address will not be published. Required fields are marked *