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Easy guide on how to apply for CBN collateral-free loan for small scale businesses

Here is an easy guide on how to apply for CBN N10,000,000 collateral-free loans for small businesses.

The Central Bank of Nigeria (CBN) is giving out collateral-free loans of up to N10 Million to small scale businesses in a program called; Agric-Business/Small and Medium Enterprises Investment Scheme (AGSMEIS) 


The Scheme aids government policy criteria for the improvement of agricultural businesses, micro, small and medium enterprises (MSMEs) as carriers for sustainable economic growth and job creation.

The goals of the Scheme are to:

i) Enhance access to easy and sustainable finance by Agri-businesses, Micro, Small, and Medium Enterprises.

ii ) Generate job opportunities for Nigerians

iii ) Improve the managerial ability of agri-businesses and MSMEs to develop the businesses into large corporate establishments in line with the Federal Governments program to expand the real sector and facilitate extensive development.

Modalities of the scheme

The fundings under the Scheme shall be for start-ups, enterprise growth, or revival of suffering business and must be in adherence with requirements of BOFIA (1991) as modified.

 The terms of the loans 

The Loan limit: N10,000,000

The Interest rate: 5% per annum

The tenor of expiration: Up to 7 years (depending on the nature/gestation period of the project)

The Moratorium period: Maximum of 18 months for principal and 6 months on interest.


For Micro, Small and Medium Enterprises: 

Duly completed the registration form

Bank Verification Number (BVN)

Certificate of Training from any acknowledged Entrepreneurship Development Institution (EDI) or proof of membership of standardized private sector association. e.g of EDI, House of Tara, Fate Foundation, Thrive Agric, Lagos Business School, and so on, will be needed to access the loan.

Letter of Introduction from a very important personality. Examples of such personality are Clergy, Village Head, District Head, Traditional Ruler, senior civil servant, and so on.

Proof of registration of business name or certificate of incorporation from CAC and filing of annual returns.

Tax Identification Number (TIN) and the recent Tax Clearance Certificate (TCC), where relevant.

Application Process 

Enroll with any of the recognized CBN certified EDI (Entrepreneurship Development Institution) for a one-week training.

Qualified applicants shall obtain and submit a completed application form to their respective EDIs

The EDI will then collate, verify, and submit applications to the CBN.

CBN shall evaluate the application and invite suitable applicants for interviews

When approved, CBN shall award the loan and disburse to applicable vendors as necessary.

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Content created and supplied by: Hanmike (via Opera News )

CBN Central Bank of Nigeria Scheme Small Small and Medium Enterprises Investment Scheme


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