Are you willing to embark on farming but you don’t have the financial strength? The Agricultural loan grant 2020 is a sure way to your dream. A recent report shows that Nigeria about 40 percent out of 84 million hectares of land is cultivated. The country is blessed with rich and favourable weather condition which sustains farm products such as cocoa, palm oil, cashew, rice, yam, groundnut, beans, etc.
Agricultural Loan Grant 2020
To make the agricultural sector an admirable sector, the Federal Government of Nigeria has set up the agricultural loan grant to empower farmer to go into agriculture. The FG provides funds and grants for small-scale farmers to increase agricultural interest.
The Federal Government of Nigeria has provided avenues for the agricultural loan grant. Any farmer that needs loan from the Federal Government can access the loans through the following corporate bodies:
- CBN agricultural loan to farmers in Nigeria.
- Bank of Agriculture loan
CBN agricultural loan grant
This loan programme was set up by the Federal Government of Nigeria to provide farmers with low-interest loans in the country. This achievement was made by the Central Bank of Nigeria (CBN) releasing about 75 million naira as loan to farmers and other corporate societies around the 36 states of the federation including FCT. The can be accessed directly from Bank of Agriculture.
Bank of Agriculture – Bank of Agriculture loan grants
The channel the Federal Government of Nigeria uses to issue agricultural loan and grant to farmers in the Bank of Agriculture. The BOA is owned by FG and the CBN and Federal Ministry of Finance as their major shareholders. The BOA is controlled by the Ministry of Agriculture and Rural Development.
Requirement for accessing loan in Bank of Agriculture (BOA)
- You must have maintained a minimum customer account relationship for about 6 months;
- You must have made a deposit of at least 20% of the loan you require;
- Provide a collateral excluding land;
- Submit a detailed business plan.
BOA loans are negotiable and also depend largely on feasibility of your agricultural venture. More information about the loans is available at the BOA official website at www.boanig.com.
Other means of accessing agricultural loan grant
Apart from BOA, farmers can access loans from the following commercial banks. The federal government has patterned with these commercial banks to grant agricultural loans. These banks are:
- Zenith Bank
- Stanbic IBTC Bank
- Union Bank
- First Bank
Requirements for accessing loans through commercial banks
Farmers can access loans through commercial banks by these credit facilities which are short-term loans, medium-term loans and long-term loans. The general requirements for accessing loans through commercial banks include:
- Open an account with the bank;
- Submit a loan application;
- Deposit at least 10 percent of the total money you are applying for;
- Provide a collateral;
- Then submit a detailed business plan and a complete feasibility study.
To get more information about accessing agricultural loan and grant through commercial, visit any of the commercial bank branch.
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