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Sunday, 1 May 2016

Nigerian Graduates will have to sacrifice their certificates to get access to CBN small Business loan.

Good news! the central bank of Nigeria have just come up with a loan program for those interested in setting up small and medium businesses in Nigeria, the news is a welcomed one but it has its conditions which is, only those who are in possession of some form of certificate from recognized Nigerian tertiary institutions and those who have a "O" level certificate can benefit from this program.

these are the conditions for getting the Loan as stated by CBN:

The central bank recently came up with a Micro, Small, and Medium Enterprises fund to allow for new businesses to borrow from the fund as start-ups in a bid to create new jobs and curb unemployment.

"this is a new and recent development as it is targeted at the teeming number of unemployed young Nigerians, in the past to get access to such a loan you would need to already have an existing business but however the new guideline released by the Nigerian apex bank CBN have removed this limitation.

   “PFIs are expected to accept charge on fixed and floating assets of the financed projects as collateral for start-ups. Collateral requirement from start-ups by PFIs (DMBs and DFIs) shall be educational certificates such as SSCE, National Diploma (ND), National Certificate of Education (NCE), National Business and Technical Examination Board (NABTEB), Higher National Diploma (HND), University degree (NYSC Certificate where applicable) and a guarantor. "

“The start-ups to access the MSMEDF must present their Bank Verification Number (BVN). Venture Capital Firms (VCFs) that wish to finance start-ups in form of equity participation shall be eligible to access the MSMEDF at 2.0 percent for investment in start-up projects. The collateral for such facility to the VCF shall be bank guarantee. “Incentive shall be offered to PFIs that repay loans as at when due. a) Start-Ups (i) DMBs/DFIs playing in this space, shall access MSMEDF facility at zero percent interest for on-lending at 9.0 percent (all-inclusive) to start-ups. (ii) The PFIs shall qualify for a 50 percent risk shared on the net outstanding balance in the case of default. b) Other Incentives Microfinance Banks with PAR of 10 percent and below shall be exempted from providing financial assets as collateral to access facility under the MSMEDF.”

you ask me steve what do you think? should i use my Certificate as a collateral for a loan? what if my business idea does not work?

well what i think is, if you cannot responsibly manage your business and repay the loan given to you for start up then you have no business looking for a job in another man's Business.

we actually announced last year that the CBN governor was saying something about small business loan during the 7th annual bankers retreat, well this is the much awaited program it is a very attractive loan scheme if you ask me but na only few die hard enterpreneurs like me go fit get mind drop certificate for ground use carry loan enter business.