Friday, June 12, 2020

CBN Covid-19 Support Fund Is A Loan And Not Free Money Or Grant

A lot of people have been asking whether the CBN Covid-19 support fund is a grant or loan. So we decided to create this post to update you on things to know before applying for the support fund.

The CBN Covid-19 support fund is not free money nor a grant, it is a low-interest loan set to support households and business owners who have been affected by the Coronavirus pandemic.

The CBN Covid-19 support fund is different from the Federal Government N5000 cash transfer palliative money to poor Nigerians to cushion the effect of Coronavirus.

If you are looking for ways to expand your business or pick up life where COVID-19 left you, then the fund is for you. Those who are opportune to benefit from the loan are being given a 1-year payment moratorium.

Below are what you should expect:

For Household:

  • FACILITY TYPE: Term Loan
  • SINGLE OBLIGOR LIMIT: N3m
  • LOAN TENOR:  Maximum of 36 months
  • MORATORIUM:  At least 12 months
  • PRICING: 5% per annum till February 28, 2021, and 9% subsequently
  • REPAYMENT STRUCTURE: Installment basis, according to the nature of the enterprise

For SMEs:

  • FACILITY TYPE: Term Loan
  • SINGLE OBLIGOR LIMIT: N25m
  • LOAN TENOR: Maximum of 36 months
  • MORATORIUM: At least 12 months
  • PRICING ......?
  • REPAYMENT STRUCTURE: Installment basis, according to the nature of the enterprise

The interest rate under the intervention is 5% per annum. (all-inclusive) up to 28th February 2021 and thereafter, the interest in the facility will revert to 9% p.a. (all-inclusive) as from 1st March 2021.

Working capital will be for a maximum period of one year, with no option for rollover. Term loans have a maximum tenor of not more than 3 years with, at least, one-year moratorium.

Households: Can access a maximum of N3 million loan amount to SMEs shall be determined based on the activity, cash flow, and industry/segment size of the beneficiary, subject to a maximum of N25 million. Working capital shall be a maximum of 25% of the average of the previous 3 years’ annual turnover. (where the enterprise is not up to 3 years in operation, 25% of the previous year’s turnover will 

How to apply for the loan: Applicants who wish to apply for the loan should visit: https://nmfb.com.ng/covid-19-support

NOTE: NIRSAL Plc has warned Nigerian against scammers. They notify the general public that its official Social Media accounts are fanirsalconnect on Facebook, fanirsalconnect on Twitter. NIRSAL Connect on Linkedln and nirsalplc on Instagram.

Any other social media accounts carrying similar names or likeness of NIRSAL Plc. is fake and is intended to mislead the Public as the views and updates do not reflect that of N IRSAL Plc.

NIRSAL hereby distances itself from any Social Media account other than the aforementioned accounts and warns the Public that conducting activities with said accounts is at the user's risk.

For more information on NIRSAL, its Products. Projects and Services. kindly visit www.nirsal.com. or contact us on +234 0813988220

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