Npower News On Npower Payment, FG Grant And Federal Government Loan

According to Npower News, beneficiaries of Npower should kindly note that Npower has not started yet, and payment to beneficiaries of Npower has not commenced yet. Npower will resume and Npower payment will recommence when Betta Edu is cleared of all crimes relating to misappropriation of public funds, as we speak the investigation is still ongoing and has not been concluded by the anti-graft agency the Economic and Financial Crimes Commission (EFCC).

According to Npower News on the FG grant otherwise known as the federal government grant, beneficiaries of Npower should kindly note that the federal government grant is not meant for only beneficiaries of Npower, but for individuals into businesses, the first phase of the disbursement of the FG grant to 100,000 businesses was concluded on Thursday 18th April 2024, although there was supposed to be massive disbursement of the FG grant yesterday according to the Minister of Industry, Trade and Investment, Doris Uzoka-Anite, but the ministry is yet to receive the next batch of the Beneficiaries that qualify for the FG grant from the local government, once the list of beneficiaries is received by the ministry then the next phase of FG grant disbursement will commence, beneficiaries are kindly advised to exercise patience as the FG grant will be done in batches. To qualify for the FG grant the applicant must have passed the nin verification process and must own a business with an annual turnover of less than ₦3,000,000, the FG grant has closed for now.

According to Npower News on the federal government loan, the federal government loan is still ongoing and beneficiaries of Npower, and individuals with a registered business can apply for the federal government loan.

According to Npower News the Federal Government Loan Eligibility Criteria is as follows:

1) The loan amount is up to ₦1,000,000

2) Applicants applying for the federal government loan must have an existing business that must be in operation for one (1) year

3) Start-ups must be a registered business

4) Applicants applying for the federal government loan must provide CAC business registration documents

5) Applicants applying for the federal government loan must provide 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)

6) Applicants applying for the federal government loan must have required monthly turnover and other things as may be requested by the bank

7) Applicants applying for the federal government loan must have a personal guarantee of the promoter

8) Applicants must have an acceptance of BVN Covenant (Global Standing Instruction- GSI), and any other thing that may be required by the bank

9) Monthly equal installment (no moratorium) over a period of 3 years

10) Manufacturers up to ₦1,000,000,000(Working Capital or Asset Financing)

11) Applicants applying for the federal government loan must have at least six months business/corporate banking relationship

12) Applicants must provide CAC business registration documents

13) Applicants must provide 12 months bank statement for other bank

14) Other documentations that may be required by the bank

Security:

As may be required by the bank

Repayment term:

i) Asset Financing

Six Months moratorium on principal and interest, five years repayment period for asset financing only

ii) Working Capital Financing

Twelve months equal installment of principal and interest

Frequently Asked Questions With Respect To The Federal Government Loan

Q. How will I know if I qualify for the federal government loan?

A. The criteria are provided above

Q. What are the terms of the federal government loan?

A. The federal government 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.

Q. What if I don’t meet the criteria? Will I be considered for the federal government loan?

A. No you will not be considered for the federal government loan 

Q. What is the interest rate of the federal government loan?

A. The interest rate for the federal government loan is 9% per annum.

Q. Is there a moratorium period for the federal government loan?

A. There is a six-month moratorium period for Manufacturers applying for asset financing only.

Q What if I cannot pay back the federal government loan?

A. If you cannot pay back the federal government loan, the bank will apply all legal measures to recover the federal government loan from the borrower.

Q. Can I apply with a partner company for the federal government loan?

A. Applicant must have a registered business either as a Sole proprietorship, Partnership, or a Limited liability company

Q. Is there an age limit to the federal government loan application?

A. Yes, applicants/promoters of the company have to be 18 years and above.

Q. How long will it take from when I apply to when I get the federal government loan?

A. Getting the federal government loan, is dependent on your bank; however, it is typically expected to take 2 weeks.

Q. Can I apply for the federal government loan with different companies?

A. No, multiple applications will be disqualified.

Q. What are the repayment terms of the federal government loan?

A. Equal and consecutive monthly repayment of principal and interest for the tenor of the loan.

Q. How do I know the status of my federal government loan application?

A. You can check the status of your federal government loan application by logging into your profile. Once your federal government loan application has been forwarded to your bank for processing, you should follow up with your bank for updates.

Q. Can I reapply if my federal government loan application is rejected?

A. You may be able to reapply for the federal government loan if the reason for the rejection is a minor issue. You will be notified of the rejection and advised to provide additional information.

Q. When is the deadline for the submission of federal government loan applications?

A. Deadline will be communicated later.