How To Access CBN N50bn COVID-19 Intervention Fund

November 24, 2021

How To Access CBN N50bn COVID-19 Intervention Fund – The Federal Government through the CBN is disbursing over N50bn worth of credit facility to support families, Micro, Small and Medium scale Enterprises (MSMEs) that were affected by the COVID-19 pandemic to help alleviate the effect of the pandemic.

If you have been looking for information on how you can easily assess the CBN intervention fund, then you shouldn’t look further as we bring you good tidings in this article. If you are reading this article, it means you are seeking for information and be rest assured we are going to give you the information that you seek.

Let’s look at a list of what we have to discuss in this article;

Table of content

  • All you need to know about the CBN N50bn intervention loan
  • Eligible applicants for the TCF
  • How to access the loan
  • Some frequently asked questions about the loan
  • Final note

Let’s get started…

All You Need To Know About The CBN N50bn Intervention Loan

The outbreak of the pandemic in 2020 really affected a lot of families in the country as their source of livelihood was affected and also business activities around the world was not left out as there was low production of goods and services.

In a bid to lessen the effect of this pandemic on some Nigerians, the federal government through the CBN and it has introduced the COVID-19 intervention fund which is the N50bn Targeted Credit Facility (TCF). It is a stimulus package to support families and Micro, Small and Medium scale Enterprises (MSMEs) that were affected by the pandemic.

Through this programme, the Federal Government can cushion the effect of the pandemic and also support families and MSMEs whose economic activities were disrupted by the COVID-19 pandemic. The programme is also geared at helping MSMEs with funds to expand their productive capacity.

Eligible Applicants For The CBN N50bn COVID-19 Intervention Loan

In as much as the government wants to alleviate the effect of the pandemic in the country, it is not everybody that qualifies for the loan and so we are going to be looking at the applicants that are eligible for the program. They are:

  • Families with strong evidence that their livelihood was greatly affected by the outbreak of the COVID-19 pandemic
  • Airline service providers
  • Existing enterprises with strong evidence that business activity was greatly affected by the pandemic
  • Firms in agricultural value chain activities
  • Manufacturing or value addition
  • Health (pharmaceuticals and medical supplies)
  • Hospitality industry (accommodation and food services)
  • Trading and other income generating activities that the CBN deem eligible for the loan

How To Access The Loan

If you fall under any of the business activities we have highlighted above, then it means you qualify to apply for the CBN N50bn COVID-19 intervention loan and we are going to show you how you can actually assess the loan.

We will be looking at this in two categories and so without further ado, let’s proceed…

For Households (Families) or MSMEs

  • Eligible households are to submit an application to NIRSAL MFB, and it must contain BVN, business registration, business plan with clear evidence of the effect of the COVID-19 pandemic.
  • NMFB shall evaluate and conduct due to diligence applications
  • After the evaluation and if the NMFB is satisfied, it would forward the applications to the CBN for final approval
  • The CBN will review applications and give final approval for disbursement to NMFB.

For Corporate Entities

  • Applications are submitted to NMFB with clear evidence of the effect of the COVID-19 pandemic on business activities
  • The NMFB will evaluate and conduct due diligence applications
  • After the evaluation and if the NMFB is satisfied, it would forward the applications to the CBN for final approval
  • The CBN will review applications and give final approval for disbursement to NMFB.

Some frequently asked questions about the loan

What is the loan limit?

The loan limit depends on certain criteria and they are:

  • For the SMEs, the loan amount will be determined based on the activity, cash flow and industry size and they can draw up to N25 million.
  • For the households, they can draw up to N3 million.

What is the interest rate?

The interest rate for the intervention loan was about 5% per annum and presently it has been raised to 9% per annum.

What is the collateral requirement?

The guideline states that the collateral to be pledged by the applicants under the programme will be accepted by NIRSAL, MFB and they are:

  • Irrevocable domiciliation of proceeds
  • Movable asset(s) that is registered on the National Collateral Registry (NCR)
  • Two acceptable Guarantor
  • Comprehensive insurance over the asset(s)
  • Life assurance of the Key Man with NMFB noted as the First Loss Payee
  • Simple deposit of title documents in perfect state
  • Personal Guarantee of the promoter of the business

What is the Exit date of the intervention loan?

The exit or end date of the intervention loan is December 31, 2024 and you should know that the programme is subject to review from time to time depending on the CBN.

Final Note

The intervention loan is a great way to relieve Nigerians of the adverse effect of the COVID-19 pandemic and you should look at the eligibility criteria we highlighted in this article and see the category you fall under so you can start you application and be among the successful candidates to assess the CBN N50bn COVID-19 intervention loan.

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