How to get business capital from the central bank of nigeria
How to get a business capital from Central bank of nigeria.
Stay attentive to your state government to know when the central bank of includes them in member of states that require their capital investment.
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In move to booste the economy of nigeria through production of more non-oil based export products, and to diminish the rate of unemployment the central bank of nigeria, from time to time, initiates different programs and intervention schemes that ensure that jobs are created into the economy and more agricultural products are produced for consumption and export.
Many of these programs allow the new and already existing small and medium sized businesses to apply and get capitals funds, to start or upgrade their already existing businesses.
The best benefits is that there is no collateral required to acquire these loans.
All you need to have is reliability and your zeal to do the business which you choose to do.
Clarity in the business you want to do and and where you want to do it is the best most important thing about how easy the process of acquiring the loan is going to be. That is why the cbn do require you create a clear plan so that they will be sure that you are clear about the business.
And ability to fulfill the requirement is the second important factor.
Patience and polite calmness is a smart way to deal with official personality, public institution, or government related body. I want you to get this loan that is why i'm telling you this. No matter how long it is taking you, persist... the benefit in this loan is worth more than anything it might take from you.
Never quarrel with the bankers, none of the delay is their fault, but don't be shy to politely ask any question you have, they must answer you.
So, the another question is what are the requirement for the central bank's anchor borrowers program?
Any one can get loan under this program, if the person is willing to provide the requirement.
1. open a bank account with a central banks approved disbursement bank:-
The bank i know for now, is the nirsal micro-finance bank,(NMFB) which is the central banks bank. This is the bank i used and got my own. It belongs to the federal republic of nigeria. I recommend you should go for nirsal.
Running the central bank's loan of any type with the nirsal micro-finance bank can be fun and easy because they provides you with optimum guide, step by step from A-Z.
And they have a very limited chance of failing you, because they are owned by the central bank.
2. Get training from the economic/entrepreneurship development institute (EDI) :-
This training is compulsory, and you will have to pay, and follow all instruction the EDI will give you. The EDI does not belong to the Government, but are registered as a legal business development institution.
You will have to make choice of which one to train you from the list of EDI, that the bank provided.
3. Write your business plan:-
Follow here to see how to write business plan. Business plan helps you to be clear about your business vision, and also to set goals for progress and also to attract the lenders' attention and zeal to invest in your business. It is best that you write your business plan by your self, for clarity and for sure implementation and success.
4. Run your Nmfb account:-
Running your account makes the bank to know that you are really doing a business. No amount deposited into your account is small, but running your account shall make you to learn more about how to operate the bank and also know more about their substantial services and opportunities.
5. Apply for the loan:-
After the training, the EDI will issue you a certificate proving the completion of the compulsory 5 days training.
The amount of money you should apply for should be the amount you currently need in your business if it is already existing. But if your business is yet to exist, maybe you are upgrading business, check how long you have been into your own business, and then check the level at which you want to upgrade the business. This will determine how much you would apply for.
If you are completely new into the business world, apply for a very small amount of money so that if the business failed, you can be able to pay it and the accruing interest rate comfortably, but if you succeed, then, you can borrow larger amount that you want.
6. Fill guarantors details:-
Humbly seek somebody who can surety you to get the amount of money you applied for. This is another reason you should fill in a little amount.
Because, to surety somebody is risky, people find it easier to find guarantor for smaller amount. So,Check your relatives or family-friends, except your wife or husband to do this for you.
The information to provide should include the name, address, occupation, place of work,work institution, employers name, grade level, phone number, bvn, current account number, and the current account name of the guarantor plus other informations not included here. When you have filled this guarantors details, go into the bank, submit it to them and go home.
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7. Wait for interview:-
It is better to be smart enough keeping your cell phone active so that you can be notified once your application is approved.
This is the first approval, before interview.
If you get confused on what is going on, it is better to reach the bank to know the state of things.
That is why staying close to the bank is important. Remember that it is not advisable to stay idle waiting for loan from the government.
You have to be working so that you can be meeting the most pressing need for yourself as you wait for the loan, also try to get things, like location, space, and important human services and skills, that your business will require until you finally grab the loan money.
All these i tell you, because i have done them before and they worked for me. In short, this is how to do it!
8. Go for interview:-
Having written your business plan by yourself, you should have been clear about what you want your business to look like, so that what you are going to tell the interviewer, similar to what you filled in the form given to you by the EDI to describe your business.
There is no too much to the interview but it just requires this clarity and resolve.
Don't be nervous, it is only a normal conversation with the manager!
They want to test your boldness, courage, your vocality. There is no exam question you are going there to answer.
After the interview, the interviewer will give you a form to fill.
There is an amount of money the manager or interviewer will specify for you to insert into your application form,he/she gave you, insert that amount.
Also list all the equipment you want to purchase; that is the equipment required for your business.
These equipment should be really required in your business. For instance: during my own, i listed: generator, laptop, deep freezer, tv-set, office furniture,
Only list equipment you need, you must need one or few equipment to start with.
Write the name and the price to balance the amount you mapped out for the equipment purchase. It doesn't matter if your equipment purchase capital money is small, the rest can be your working capital. Be bold and make sure that you say what you mean, because this is money you must pay back with interest.
9. Wait for approval of loan: -
After you have been interviewed, they will be expected to review your application, to see if you still want to get it through the application you submitted after the interview. Try to patiently wait for this. you might forget it and go back to your normal business.
10. Accept and Print out your offer letter:-
When you are approved the second time, you will be notified, through sms or email. This is a surety that you must get the loan, unless you cancel or reject the offer letter. Click here to read more about how to accept and submit the offer letter.
11. Submit the offer letter:-
To submit the offer letter, you have to log into the nmfb website, and see the offer letter which states that your loan request was granted, then read all the terms and conditions in the offer letter, carefully, before you accept and then print it out. Sign it, write date and take it to the nmfb office. Note: The Nmfb website where you do your business plan and print your offer letter might not open in your android phone. so it is more advisable to go to cyber-cafe anytime you need to do anything concerning them online; to save you both time and resources.
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12. Fill the withdrawal form:-
Remember that as a loan applicant, you have many accounts with the Nmfb. So From The loan account, there is another account they will create, which is` also different from the main current account.
Your loan account contains the total loan granted to you. then the second savings account contains the money you will transfer to your vendor and the working capital, which you will withdraw in cash.
The current account qualifies you for loans from the bank, so keep using it. It is poor people that says that loan do not help. Loans are wonderful opportunity to move from poverty to riches, doing business with it.
After the withdrawal, you will have to fill the transfer forms. The transfer forms are two, one contains the equipment purchasing capital which will go to your vendor, while the other one shall come to another account created for you, in the same bank, where you can simply fill form and withdraw (ordinary bank withdrawal) your money.
13. Filling the transfer form for the equipment purchase:-
First thing you will do is to figure out the equipment your business needed mostly.
You have to be very clear and concise about it. For instance, lets say you need a food processing machine, then mention the kind of food processing .
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