FG Commences Presidential Palliative Loan and Grant Financial Support

The Nigeria Government has commenced the online application of the presidential palliative loan and grant empowerment programme for women, youth, senior citizens, people with disabilities and others.
 
The empowerment programme comprises of two major categories: Grant and Loan. The Grant is a single payment palliative empowerment to beneficiaries while the loan is designed to empower small, medium and manufacturing industries in Nigeria.
 
Categories
1. Loan
2. Grant
 
Category 1 – Loan
 
Basic Requirements for Loan Application
• NIN Slip major requirement
• BVN Number
• Bank Account details
• CAC Registration details
• Email address and Mobile Number
 
Who Can Apply
  • Traders: These include single retail marketers, corner shop owners, petty traders, market men and women in open markets
  • Food Services: These include food and vegetable Vendors
  • ICT: These include business centre operators, battery chargers, recharge card vendors, call centre agents
  • Transportation: These include wheelbarrow pushers, independent dispatch riders
  • Creatives: These include makeup artists, fashion designers, drycleaners.
  • Artisans: These include vulcanizers, shoemakers, painters, repairers.

 

 
Loan Eligibility Criteria
 
Small Business (SMEs)
A) Eligibility Criteria for Small Business up to One Million
 
• Existing business must be in operation for one (1) year,
• Start-ups must be a registered business
• Provide CAC business registration documents.
 
• Company’s Bank Statement(s) for a period of one (1) year (for existing business)/ Chief Promoter’s  (Director or Business owner) Bank Statement(s) for a period of one (1) year (for startups). But not needed during online application.
 
• Have required monthly turnover and other things as may be requested by the bank.
 
B) Security
• Personal Guarantee of the promoter
 
• Acceptance of BVN Covenant (Global Standing Instruction- GSI), and any other thing that may be required by the bank
 
C) Repayment Frequency
The loan is repayable within a period of 3 years on a monthly basis.
Monthly equal installment (no moratorium) over a period of 3 years
Manufacturers up to N1 billion (Working Capital or Asset Financing)
 
a) Eligibility Criteria for Manufacturing companies up to N1 billion
 
• Provide at least 6 months business/ corporate banking relationship
• CAC business registration documents
• 12 months bank statement for other bank
• Other documentations that may be required by the bank.
 
b) Security
As may be required by the bank loan condition.
 
c) Repayment term
i) Asset Financing: 6 Months moratorium on principal and interest, 5 years repayment period for asset financing only
 
ii) Working Capital Financing: 12 months equal installment of principal and interest
 
Loan Application Steps
1- Sign Up 
2- Provide business details
3-  Company promoters/director
4-  Loan details and submit
 
Key Features of Loan Application
 
Transparent and Efficient: It prioritises transparency and efficiency, ensuring that funds are disbursed swiftly to deserving businesses.
 
Digital Transformation: The platform leverages cutting-edge technology to make the entire process accessible through smartphones and computers, allowing SMEs to apply from anywhere.
 
Financial Literacy: The platform provides resources and training to empower SMEs with the knowledge to manage their funds effectively.
 
Facts about the Loan Scheme
 
Loan application and Disbursement: Apply for the loan through the provided website www.fedgrantandloan.gov.ng while disbursement will be done by your bank if you meet the eligibility criteria.
 
Loan Conditions and Terms
The loan term is 36 months for MSMEs and Manufacturers (Working capital) is 12 months, while Manufacturers (Asset financing) has a 60-month tenor with a six-month moratorium.
 
Loan interest rate is 9% per annum
 
While moratorium is six-month moratorium period for Manufacturers applying for asset financing only.
 
Payback and Repayment: Please note that your bank will apply all legal measures to recover the loan from the borrower. Equal and consecutive monthly repayment of principal and interest for the tenor of the loan.
 
You can use your company or business name: Applicant must have a registered business either as a Sole proprietorship, Partnership, or a Limited liability company
 
Loan application age limit is 18 years and above for applicants/promoters of the company.
 
Applicants are able to access their loan after two weeks of application, but depend on your bank. Also, multiple applications will be disqualified.
 
Things to Upload
1. Passport Photograph
2. Govt approved ID Card – NIN, PVC, 
3. CAC Certificate
4. CAC Status report and other
 
Category 2 – Grant
 
Presidential Conditional Grant Scheme (PCGS)
 
Nigeria Government has kickoff the Presidential Conditional Grant to Nano Businesses as part of the Presidential Palliative Program.
 
The PCGS grant amount is N50,000 (Fifty Thousand Naira) per beneficiary, and it is designed to reach one million nano businesses in the 774 local government areas.
 
The Federal Government will collaborate with the State Governments, Honourable Ministers, NASME (Nigerian Association of Small and Medium Enterprises), Senators, and House of Representative Members, who will use the Federal Government’s selection criteria below to shortlist the beneficiaries from their constituents.
 
The target Beneficiaries
• women and youth – 70%
• People with disabilities –  10%
• Senior citizens – 5%
• Distributed to other demographics –  15%
 
Who can apply for Grant
 
1. Own a nano business.
2. Operate a business with progressive economic potential, and desire to grow the business.
3. Be willing to engage at least one additional staff member if turnover increases
4. Be willing to provide proof of residential/business address in the Local Government Area
Provide relevant personal and bank account information, including Bank Verification
(BVN) for verification of identity
5. Meet the application submission deadline.
 
Application Portal for Loan and Grant

 

Visit www.fedgrantandloan.gov.ng and select either grant or loan to apply.
 
This is an initiative of the Federal Government of Nigeria under the supervision of the Federal Ministry of Industry, Trade and Investment. The game changer palliative programme for Nigerians.

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