Npower News: Federal Government Loan

Revolutionizing Financial Support

Introducing The Federal Government Loan - A Game-Changer in Economic Empowerment.

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

A) Traders 

These include single retail marketers, corner shop owners, petty traders, market men and women in open markets.

B) Food services 

These include food, fruits and vegetable vendors, etc.

C) ICT

These include business centre operators, battery chargers, recharge card vendors, call centre agents.

D) Transportation 

These include wheelbarrow pushers, independent dispatch riders.

E) Creatives

These include makeup artists, fashion designers, drycleaners.

F) Artisans 

These include vulcanizers, shoemakers, painters, repairers.

A) Eligibility Criteria For The Federal Government Loan 

The following below are the eligibility criteria before applying for the federal government loan 

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

2) Start-ups must be a registered business.

3) Provide CAC or SMEDAN business registration documents.

4) 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).

5) Have required monthly turnover and other things as may be requested by the bank.

B) Security For The Federal Government Loan 

1) Personal Guarantee of the promoter

2) 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 3 years

D) 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

We prioritise transparency and efficiency, ensuring that the federal government loan is disbursed swiftly to deserving businesses.

The federal government loan application portal leverages cutting-edge technology to make the entire process accessible through smartphones and computers, allowing Small and Medium Enterprises (SMEs) to apply for the federal government loan from anywhere.

We understand the importance of financial education. Therefore, the federal government loan application platform provides resources and training to empower Small and Medium Enterprises (SMEs) with the knowledge to manage their federal government loan effectively.

Frequently Asked Questions Regarding The Federal Government Loan 

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 thirty six months for Micro Small and Medium Enterprises (MSMEs) and Manufacturers (Working capital) is twelve months, while Manufacturers (Asset financing) has a sixty-month tenor with a six-month moratorium.

Q. What if I do not meet the eligibility criteria for the federal government loan? Will I be considered?

A. No

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 6-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. Yes. Applicant for the federal government loan must have a registered business either as a Sole proprietorship, Partnership, or a Limited liability company

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

A. Yes, there is an age limit 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. This is dependent on your bank; however, the federal government loan is typically expected to take 2 weeks to be disbursed.

Q. Can I apply with different companies?

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

Q. What are the repayment terms?

A. 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 application?

A. Applicants can check the status of their federal government loan application by logging into their profile. Once their federal government loan application has been forwarded to their banks for processing, they should follow up with their banks for updates.

Q. Can I reapply for the federal government loan if my 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. The deadline for the federal government loan application will be communicated later.

Q. How do I access the federal government loan?

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

Eligible applicants for the federal government loan who meet the selection criteria will be shortlisted.