CBN Loans-Micro, Small and Medium Enterprises Development Fund (MSMEDF)|www.cbn.gov.ng/

Welcome to mitrobe network, In today’s guide, I will be explaining briefly few things you must concerning the CBN Micro, Small and Medium Enterprises Development Fund (MSMEDF)| which you can access via www.cbn.gov.ng/

Still searching relentlessly for CBN (MSMEDF) Loan? This page will guide you completely. Lets get started right away. MSMEDF is ultimately Central bank of Nigeria (CBN) initiative formed with the intent of promoting the development of micro, small and medium enterprises (MSMEs) in Nigeria. More details will be reveal as you read further…..

CBN is Nigeria’s apex financial authority and one of its major objectives is promoting the development of MSMEs in the country. In the light of this developmental objective, the CBN initiated several intervention  Loan schemes.

While some of these schemes provide beneficiaries with loans, others release substantial funding needed for business growth. Importantly, we have conducted thorough findings on the various CBN-initiated loan opportunities targeted at businesses, particularly agricultural businesses and SMEs

The central bank of Nigeria is responsible for coordinating all monetary transactions in Nigeria. They make sure bank activities are always transparent and are responsible for printing currencies and other foreign exchange.

This page is centered on CBN Loans-Micro, Small and Medium Enterprises Development Fund (MSMEDF)|www.cbn.gov.ng/

Central bank of Nigeria Review

The Central Bank of Nigeria (CBN) is the Central bank and the monetary authority of Nigeria established by the CBN Act of 1958 and officially commenced operations on July 1, 1959.

The CBN soon became involved in lending directly to consumers, contravening its original intention to work through commercial banks in activities involving consumer lending.

Meanwhile, the policy was an offspring of the indigenization policy at the time. Nonetheless, the Federal government through the CBN has been heavily involved in building the nation’s money and equity centers nationwide, forming securities regulatory board, and introducing treasury instruments into the capital market.

Definition and Meaning of CBN

CBN is short for Central Bank of Nigeria. The CBN is considered the supreme monetary authority in Nigeria. Responsible for issuing the Nigerian naira, maintaining foreign currency reserves, and also maintaining monetary stability. It is also the lender of last resort for Nigerian banks. It was established officially in 1958.

Jobs and Duties of CBN

The Central Bank of Nigeria’s core values of Meritocracy, Leadership, Learning, and Customer-Focus are to guide the behavior of both management and employees of CBN towards the achievement of the Bank’s vision. Below is a list of their core duties

• To ensure monetary and price stability.
• To issue legal tender currency in Nigeria.
• To maintain external reserves to safeguard the international value of the legal tender currency.
• To promote a sound financial system in Nigeria.
• To act as Banker and provide economic and financial advice to the Federal Government.

CBN Micro, Small and Medium Enterprises Development Fund (MSMEDF Loan)

MSMEDF is a CBN initiative established with the intent of promoting the development of micro, small and medium enterprises (MSMEs) in Nigeria. Notably, CBN’s establishment of MSMEDF was necessitated by the need to minimize the massive financial gap hampering the growth of MSMEs in Nigeria.

A sizeable number of Nigeria’s MSMEs are eligible for this loan scheme and importantly (and provided by the Revised Microfinance Policy, Regulatory and Supervisory Framework for Nigeria), such MSMEs should include any of the following:

1. Artisans
2. Cottage industries
3. Trade and general commerce enterprises
4. Service-based businesses
5. (Businesses contributing to) agricultural value chain
6. Businesses concerned with energy-efficient technologies and products
7. Businesses/enterprises concerned with other CBN-recommended economic activities

Click here to find out the application process for MSMEDF.

Frequently Asked Questions on MSMEDF

1. 1. How Can I (Or My Company) Access The MSMEDF?

Prospective borrowers should approach Participating Financial Institutions (PFIs) of their choice and apply for the Fund.

1. 1. What categories of entrepreneurs can apply for the Fund?

(a) Micro entrepreneurs (i. e. borrowers seeking loans of less than N500,000) are to approach any of the four institutions:
* Microfinance Banks          * NGO/Microfinance Institutions
* Financial Cooperatives    * Finance Companies

(b) Small and Medium Enterprises (SMEs) (i.e. prospective borrowers seeking between N500, 000 and N50million) are to approach any of these institutions:

1. 1. • Deposit Money Banks
      • Bank of Industry (BOI)
      • Bank of Agriculture)
   2. Who are the Participating Financial Institutions?

The PFIs under the Fund are as follows:
Micro borrowers (N500,000 to N5,000,000) would approach:

1. 1. • Microfinance Banks
      • NGO-Microfinance Institutions
      • Finance Companies
      • Financial Cooperatives

SME borrowers (N5,000,000 to N50,000,000) would approach:

1. • Deposit Money Banks and Development Finance Institutions (Bank of Agric and Bank of Industry)
2. What are the activities that can be financed under the Fund?
   • Agricultural value chain activities,
   • Manufacturing & Cottage Industries,
   • Artisans,
   •  Services,
   • Trade and general commerce,
   • Renewable energy or energy efficient products and technologies, and
   • Any other income generating projects as may be prescribed by the CBN.

Further Information:

• Prospective borrowers shall provide the requisite documents including collateral for SME loans;
• PFIs will appraise loan applications, approve and forward loan requests of borrowers to the CBN for the release of funds;
• MSMEDF will only release funds to borrowers through the PFIs;
• The account of benefitting  borrower’s shall be credited by the PFIs within 5 working days upon the release of Funds by MSMEDF to the PFI;
• Loans shall be granted at an interest rate of 9.0% per annum (all charges inclusive) irrespective of the type of eligible activity financed;
• Borrowers shall be expected to payback all loans as and when due inclusive of any accrued interest to the PFI; and
• The MSMEDF/CBN will recycle all fully repaid loans transferred to it by the PFIs.

We hope the information above has helped you find out about the CBN Loans-Micro, Small and Medium Enterprises Development Fund (MSMEDF) opportunities for SMEs and how you can apply for it without stress/ Lets have your comment below should you have any query….