Agricultural Grant Loans 2023 – Apply and Get Yours Now

As we’ll keep discussing Agricultural Grant Loans, this post will tell you everything you need to know in Loans in Agriculture
The Agricultural sector in Nigeria is one of the industries filled with untapped resourses as about 70% of the population engages in it in a subsistence position.

still, or you need business capital, taking an agricultural loan could be a result If you’re into husbandry and you’re ready to push your business to another position.

The Central Bank of Nigeria said a ten-time plan of 7% credit allocation into the Nigerian agriculture sector in the time 2011.

This plan was established to encourage participation in the agriculture sector as well as ameliorate agricultural product affairs.

To achieve this feat, the central bank introduced some measures that included the creation of intervention finances like the Commercial Agricultural Credit Scheme( CACS).

The Starting of these measures has an estimation to boost the agricultural sector by 400% growth from 2011 to 2021.

Agricultural Grant Loans 2023 – Apply and Get Yours Now

Wondering where and how to get agric loans in Nigeria, then are six lenders you could approach for a loan in Nigeria

1. Bank of Agriculture

Popularly known as the “ farmers ’ bank ”, the Bank of Agriculture is a government-approved bank whose end is to give banking services, fiscal loans, and advice to farmers 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 farmer loans, agricultural micro-loans, non-agricultural micro-loans, and Agribusiness loans.

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

This is a funding scheme established by the Federal Government in collaboration with the CBN to promote a sustainable economy and increase employment opportunities through agri-businesses.
Their agricultural loans have an interest rate of 5% with a tenor of 7 years. Industries eligible for this scheme are the Agriculture sector, Service sector (ICT and the creative industry), Real industry (mining and manufacturing), and other SMEs approved by the Central Bank of Nigeria.

3. Commercial Agriculture Credit Scheme (CACS)

This is an initiative by the Federal Ministry of Agriculture and the Central Bank of Nigeria to boost the development rate of agric businesses in the agricultural sector.
Their agricultural loan facility is open to medium or large-scale commercial farms, limited liability companies in the agriculture production process, and state governments (for lending to subsistence farmers).
However, with 9% as its interest rate, this fund is open until 2025.

4. Agricultural Credit Support Scheme (ACSS)

This is an agriculture funding initiative by the Federal Government and the CBN. Also, the Bankers Committee currently supports this scheme.

Established to encourage farmers in the agricultural sector, the ACSS checks affectation of agricultural yield reduces the cost of products, and also helps to diversify Nigeria’s profit base.

The ACSS loans have an interest rate of 8%( 6 %if you pay earlier) and you can pierce them through the separate state chapters of the Farmers association or directly from banks if you’re a large-scale Farmer.

5. Agricultural Credit Guarantee Scheme Fund (ACGSF)

This initiative, established by the Federal Ministry of Agriculture and managed by the Central Bank provides a guarantee (about 75%) for loans extended to farmers from commercial banks.
The ACGSF offers some products which include Interest DrawBack, the Self-Help Group Linkage Banking, and the Trust Fund Model. Interest DrawBack subsidies interest rates.
Self-Help Group Linkage Banking encourages group savings and loans, and the Trust Fund Model complements farmers’ security for loans.

6. The Nigerian Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL)

This initiative was launched in 2011 and incorporated in 2013. The purpose of this scheme is to address the low funding level in the agriculture sector.
Also, to channel finance into fixed agricultural value chains. NIRSAL specializes in Agribusiness Project Development, Agricultural Risk Management, Value Chain Fixing, and Finance Facilitation.

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