Five (5) FG Agriculture Loans That Application is Currently Ongoing in 2022

Five (5) FG Agriculture Loans That Application is Currently Ongoing in 2022

If you are a Nigerian farmer looking for a Federal Government (FG) Agricultural loan to boost your agricultural business, then you are at the right place as we will be walking you through the list of FG Agriculture Loans that application is currently ongoing in 2022.

You may also want to read How To Easily Claim Your Abandoned NMFB Covid-19 TCF Loan

The Buhari-led Government is working tirelessly to resuscitate the economy after the negative impact of the COVID-19 Pandemic in 2020 on the income of Small and Medium Enterprise owners in the country through intervention loan programmes.

These loan programmes are focused on Youths and general MSMEs in which the Federal Government has initiated and thousands of beneficiaries have already benefited. For the purpose of this article, we will be looking at the ones made available for farmers.

Five (5) FG Agriculture Loans That Application is Currently Ongoing in 2022

Below is the list of Federal  Government loans for farmers in Nigeria:

1. Bank of Agriculture Loans

Popularly related to as the “growers bank”, the Bank of Agriculture is a government-approved bank whose end is to give banking services, fiscal loans, and advice to growers in Nigeria. The bank is supervised by the Federal Ministry of Agriculture and regulated by the Central Bank of Nigeria. Some loans handed by the Bank of Agriculture include; SME loans, Cooperative and planter’s loans, Agriculturalmicro-loans, Non-agricultural micro-loans, and Agribusiness loans.

Key Manadates

• Provision of agricultural credit to support all agricultural value chain activities.
• Provision of non-agricultural microcredit
• Savings mobilization
• Capacity development through the promotion of co-operatives, agricultural information systems, and the provision of technical support and extension services.
• Provision of opportunities for self-employment in the rural areas, thereby reducing rural-urban migration.
• Inculcation of banking habits at the grassroots of the Nigerian society.

In order to apply, kindly visit their official website at https://www.boanig.com/

2. Agric- Business Small and Medium Enterprises Investment Scheme AGSMEIS

This is a backing scheme established by the Federal Government in collaboration with the CBN to promote sustainable frugality and increase employment openings through agri- businesses.

The Nirsal Microfinance Bank is in charge of giving out this loan to farmers. Their agrarian loans have an interest rate of 5 with a tenor of 7 times. Diligence eligible for this scheme is the Agriculture sector, Service sector (ICT and the creative industry), Real assiduity (mining and manufacturing), and other SMEs approved by the Central Bank of Nigeria.

To apply for this loan, kindly click here

3. Commercial Agriculture Credit Scheme (CACS)

The Commercial Agriculture Credit Scheme (CACS) is a loan scheme established by a dual collaboration of the Central Bank of Nigeria (CBN), and the Federal Ministry of Agriculture to support and fast track the improvements/development of the agricultural sector of the country.

This means that anyone who owns a business in the agricultural sector can easily become a beneficiary of the Commercial Agriculture Credit Scheme (CACS) loan, where two hundred billion naira (N200,000,000,000) funds will be disbursed among successful applicants. Also, check How to apply for CBN CIFI loan through GTBank.

Features of CACS loan

• The maximum limit for medium and large-scale private businesses is two billion naira (N2,000,000,000) while State Governments have no limit.
•  Any private sector entity that wishes to participate must have at least a fifty million naira (N50,000,000) worth of farm assets. This should not in any way have the cost of farmland attached to the base worth.
• In the case of the State Government, Irrevocable Standing Payment Order is required.

To apply for this loan kindly click here

You may also want to read Entrepreneurship Grants In Nigeria

4. Agricultural Credit Support Scheme (ACSS)

The ACSS is an initiative of the Federal Government and the Central Bank of Nigeria with the active support and participation of the Bankers Committee with the Scheme having a prescribed fund of N50.0billion.

ACSS was introduced to enable farmers to exploit the untapped potentials of Nigeria’s agricultural sector, reduce inflation, lower the cost of agricultural production (i. e. food items), generate surplus for export, increase Nigeria’s foreign earnings as well as diversify its revenue base. At the national level, the scheme operates through a Central Implementation Committee (CIC) while at the Federal Capital Territory (FCT) and State levels, the Scheme operates through State Implementation Committees (SICs) instituted to ensure that the objectives of the scheme are realized without hindrance.

To apply for this loan kindly click here

5. Agricultural Credit Guarantee Scheme Fund (ACGSF)

This action, established by the Federal Ministry of Agriculture and managed by the Central Bank provides a guarantee ( about 75) for loans extended to growers from marketable banks.

The ACGSF offers some products which include Interest, Debit, the Tone- Help Group relations Banking, and the Trust Fund Model. Interest Debit grants interest rates. Tone- Help Group Relation Banking encourages group complements growers, and the Trust Fund Model complements growers’ security for loans.