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Here’s how to get a single-digit interest loan from your bank

The Central Bank of Nigeria, on Monday, released the guidelines for its new credit policy, which is aimed at providing funds to the agriculture and manufacturing sector at a single digit interest rate.

According to the guidelines, the maximum amount accessible by a party is N10 billion.

The loans can be received from any bank which has contributory cash reserve ratio with the CBN.

To access the loan, the company must be incorporated in Nigeria under the Companies and Allied Matters act of 1990.

According to the apex bank, loans must only be approved for new projects or expansion projects and “priority shall be accorded projects with high local content, import substitution, foreign exchange earnings and potential for job creation”.

The minimum loan tenor is seven years with a two-year moratorium.

Repayments must be spread across the period and shall be remitted to the CBN on a quarterly basis.

Banks will carry out due diligence based on normal business consideration and disburse funds in approved tranches within five working days of release by the CBN.

Borrowers must utilize the funds for the purpose for which it was granted and ensure that the projects and records are available for inspection and verification.

Corporate, Triple-A rated companies are also encouraged to issue long-term corporate bonds in which the CBN can invest.

Companies issuing corporate bonds must not have a non-performing loan with any financial institution.

The CBN said a corporate bond funding programme had already been put in place to enable the CBN and the general public invest.

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