MSMEDF Registration: How to access Micro, Small and Medium Enterprises Development Fund
This article will help you to access Micro, Small and Medium Enterprises Development Fund (MSMEDF) Loan via online through Application Form Link Portal. Apply here online.
Federal Government has map out the sum of N50 billion to be used for payroll support, N200 billion for loans to artisans, and N10 billion support to private transport companies and workers.
At the end of this post you will know how to access Micro, Small and Medium Enterprises Development Fund (MSMEDF) Loan Application Form online.
How to access Micro, Small and Medium Enterprises Development Fund
Prospective borrowers should approach Participating Financial Institutions (PFIs) of their choice and apply for the Fund.
Categories of Entrepreneur who can access MSMEDF
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
Nigerian Youth Investment Fund Loan
Small and Medium Enterprises (SMEs) (i.e. prospective borrowers seeking between N500, 000 and N50million) are to approach any of these institutions:
- Deposit Money Banks
- Bank of Industry (BOI)
- Bank of Agriculture)
Who are the Participating Financial Institutions?
The PFIs under the Fund are as follows:
Micro borrowers (N500,000 to N5,000,000) would approach:
- Microfinance Banks
- NGO-Microfinance Institutions
- Finance Companies
- Financial Cooperatives
SME borrowers (N5,000,000 to N50,000,000) would approach:
- Deposit Money Banks and Development Finance Institutions (Bank of Agric and Bank of Industry)
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.
How to register for MSMEDF Loan
Please note the followings while accessing MSMEDF:
- 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.
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