Npower News: The Federal Government Loan, Eligibility Requirements, And Date For Disbursement

According to Npower News, the federal government of Nigeria introduced the federal government loan months ago but the federal government loan applicants have been wanting to know when the federal government loan will commence and those yet to apply for the federal government loan have been asking about the eligibility requirements for the federal government loan, below are answers to questions regarding the federal government loan application and disbursement.

Below are the business that are eligible to apply to the federal government loan: 

These includes:

1) Single retail marketers

2) Corner shop owners

3) Petty traders

4) Market men and women in open markets

5) Food, fruits and vegetable vendors, etc

6) Business centre operators

7) Battery chargers

8) Recharge card vendors

9) Call centre agents

10) Wheelbarrow pushers, 

11) Independent dispatch riders

12) Makeup artists

13) Fashion designers

14) Drycleaners.

15) Vulcanizers

16) Shoemakers

17) Painters

18) Repairers.

A) Eligibility Criteria For The Federal Government Loan 

1) NIN is a major requirement for the federal government loan 

2) Federal Government loan applicants who have already filled the form should login into the federal government loan portal and update their federal government loan application with their NIN

3) Existing business must be in operation for one (1) year

4) Start-ups must be a registered business

5) Provide CAC business registration documents.

6).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).

7) The Federal Government loan applicant is required a monthly turnover and other things as may be requested by the bank.

B) Security For The Federal Government Loan 

1) The federal government loan applicant must have a personal guarantee of the promoter

2) The federal government loan applicant must have an acceptance of BVN Covenant (Global Standing Instruction- GSI), and any other thing that may be required by the bank

C) Repayment Frequency For The Federal Government Loan 

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

A) Eligibility Criteria For The Federal Government Loan 

1) The federal government loan applicant must have at least six months business/corporate banking relationship

2) The federal government loan applicant must provide CAC business registration documents

3) The applicant for the federal government grant must have twelve months bank statement for other bank

4) Other documentations that may be required by the bank.

B) Security

1) The applicant for the federal government loan must have security as may be required by the bank

C) Repayment Term For The Federal Government Grant:

i) Asset Financing

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

ii) Working Capital Financing For The Federal Government Loan 

Twelve months equal installment of principal and interest

According to Npower News the federal government of Nigeria prioritise transparency, accountability and efficiency, ensuring that the federal government loan is disbursed promptly to deserving businesses.

The platform leverages cutting-edge technology to make the entire process accessible through smartphones and computers, allowing SMEs to apply for the federal government loan from anywhere.

The Federal Government of Nigeria, the Bank of Industry and the Ministry for Industry, Trade And Investment understands the importance of financial education. Therefore, the federal government loan portal provides resources and training to empower SMEs with the knowledge to manage their federal government loan effectively.

Frequently Asked Questions Regarding The Federal Government Loan 

Q. How do I access the federal government loan?

A. Apply for the federal government loan through the provided website www.fedgrantandloan.gov.ng while the federal government loan disbursement will be done by your bank if you meet the eligibility criteria.

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

A. The criteria are provided on the website www.fedgrantandloan.gov.ng

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 do not meet the criteria for the federal government loan? Will I be considered for the federal government loan?

A. No

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

A. The interest rate of 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. The bank will apply all legal measures to recover the federal government loan from the borrower.

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

A. The federal government loan applicant must have a registered business either as a Sole proprietorship, Partnership, or a Limited liability company

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

A. Yes, applicants/promoters of the company applying for the federal government loan 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. When the federal government loan will get to you is dependent on your bank; however, disbursement of the federal government loan is typically expected to take two weeks.

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

A. No, multiple applications for the federal government loan will be disqualified.

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

A. The repayment terms for the federal government loan are equal and consecutive monthly repayment of principal and interest for the tenor of the federal government 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 applications for the federal government loan?

A. The application deadline for the federal government loan will be communicated later.