CBN Governor, Mr Godwin Emefiele
The CBN also said that banks and other finance institutions that lends to business start-ups under the fund will be allowed to access the fund at zero interest rate.
This was contained in the Revised Micro, Small and Medium Enterprises Development Fund (MSMEDF) Guidelines issued yesterday by the Development Finance department of the CBN.
Previously, only existing businesses can borrow from the fund through their banks. The new guidelines however removed this limitation stating, “Participating Financial Institutions (PFIs) are required to fund start-up projects under the MSMEDF. To encourage Deposit Money Banks (DMBs) and Development Finance Institutions (DFIs), some incentives shall apply.
“PFIs are expected to accept charge on fixed and floating assets of the financed projects as collateral for start-ups. Collateral requirement from start-ups by PFIs (DMBs and DFIs) shall be educational certificates such as SSCE, National Diploma (ND), National Certificate of Education (NCE), National Business and Technical Examination Board (NABTEB), Higher National Diploma (HND), University degree (NYSC Certificate where applicable) and a guarantor.
“The start-ups to access the MSMEDF must present their Bank Verification Number (BVN). Venture Capital Firms (VCFs) that wish to finance start-ups in form of equity participation shall be eligible to access the MSMEDF at 2.0 percent for investment in start-up projects. The collateral for such facility to the VCF shall be bank guarantee.
“Incentive shall be offered to PFIs that repay loans as at when due. a) Start-Ups (i) DMBs/DFIs playing in this space, shall access MSMEDF facility at zero percent interest for on-lending at 9.0 percent (all-inclusive) to start-ups. (ii) The PFIs shall qualify for a 50 percent risk shared on the net outstanding balance in the case of default. b) Other Incentives Microfinance Banks with PAR of 10 percent and below shall be exempted from providing financial assets as collateral to access facility under the MSMEDF.”
In addition to the above, the CBN also reduced interest rate it charges PFIs accessing the loan from 3.0 percent to 2.0 percent. It stated, “Interest Rates All PFIs shall access funds at an interest rate of 2.0 percent per annum and on lend at 9.0 percent per annum inclusive of all charges. The interest rate chargeable under the MSMEDF may be reviewed by the Central Bank of Nigeria from time to time.”
The decision to allow business start-ups borrow from the fund is aimed at boosting graduate employment by encouraging banks to lend to graduates intending to set up businesses.
Recall that the CBN Governor, Mr. Godwin Emefiele while addressing the just concluded 7th annual Banker Committee Retreat had announced that the apex bank would soon introduce measures to generate one million graduate employments.
He said, “In 2016, the CBN is contemplating a programme that would support SMEs at concessionary pricing to our young graduates. We need to get more people to be employed. The central bank would over the next few weeks work out the initiative to create employment for at least one million graduates in Nigeria in 2016. That would entail the support from Nigerian banks and our development partners.”

Source:http://www.aggonreporters.com/2015/12/cbn-allows-new-businesses-borrow-from.html?m=0

Banks in Nigeria finance start ups?, iffa hia

Good design by CBN though.

Let's wait and see

I hope the banks comply

CBN Governor, Mr Godwin Emefiele The CBN also said that banks and other finance institutions that lends to business start-ups under the fund will be allowed to access the fund at zero interest rate.

Its a welcomed development coming from the new "Clueless One", It will help fund start ups and even give SME's a breathing ground but for a Maize to grow it doesn't only need sun light, it needs water, fertile ground and modern ways of farming so to provide funds for SME and start ups with out tackling problems in the power sector,High rate of Inflation,High exchange rate, High rate of tax imposed by different local and state governments, transportation cost, etc its good as robbing Peter to pay Paul.

This country is heading to the right direction, a direction of been better but it has a potential to be great and i want to see it become great than to settle as been better, we all have to come together and say NO to corruption and work with my Sai Buhari to make this Nation great.


Sai Buhari.

Good initiative. The problem is that we don't have credible credit rating system in the country and the bank's will never be comfortable lending (or giving Bank Gauranty) to Start ups.
If this us strictly monitored and adequately implemented, the SME sector of the economy will be adequately stimulated.
Young Entrepreneurs should come together and put together profitable and sustainable ideas that can win them the facilities.

I wish we had Emefiele as CBN governor all these while, not this Northern King we had that turned the bank as a political party and propaganda unit.

Borrow borrow

Nigerians should be well prepared these days , To avoid....

Cbn this Cbn that

Make I rush go borrow before e finish
I hope no be dasuki they in charge of the money o

I hope so.

Nah bubu cause am

Really





Time to start my palm kernel oil drilling business then!

Great news

This is a welcome catalyst to encourage more Nigerians to explore entrepreneurship while simultaneously minimizing unemployment among young graduates.

For a long time, costly capital financing had been the the barrier limiting young budding Nigerian entrepreneurs, aiming to transform their brilliant ideas into valuable products and services, that would exploit our huge market potential. The generous incentives given to PFI's and venture capitalists (angel investors) will hopefully motivate them into positive action.

This policy which gives one confidence in the export focus of this new administration, will inject some vibrancy and dynamism into the ailing economy. Well done PMB.

E don happen

Click like if you think Godwin Emefiele should be allowed to complete his term as CenBank Gov.

God bless PMB and Osinbajo

Pass with ease via my signature

This is good for those with great business ideas but lack funding...What better way to stimulate the economy that to help the small businesses start up. Zero interest loans reduces the burden on start-ups.

I hope the process is well managed so that only those with great business plans get the loans. There is no doubt that it will be a competitive process though...

Nice

..


end time space booking..

the poster before me is an end time space booker..


end time CBN

end time

How is it gonna be?

Only God knows how that fund will be appropriated

How? Someone please send me phone number of the person in charge. Change is here indeed.

That is the only way the economy can grow itself. Not the hype & scam of largest economy of Jonathan & iweala

how much is the maximum one can borrow?

Can i borrow to pay for the hair my girlfriend made this christmas...?

we always hear of these programs from the top, when you get to the banks, you hear another story. The requirements will send you off!

veekid:
Borrow borrow

make me rich

Nigeria with the issue of borrowing! Let's change for better for once. God bless Nigeria