In Nigeria, Micro, Small, and Medium Enterprises (MSMEs) play a critical role in economic growth and development. However, accessing finance is a major challenge for most MSMEs, which often results in a limited ability to expand, create jobs, and contribute to the economy. To address this issue, the Federal Government of Nigeria has established various intervention programs, one of which is the NIRSAL Microfinance Bank Non-Interest Loan Scheme for MSMEs.
The Non-Interest Loan Scheme is a product of the Central Bank of Nigeria (CBN) and the Federal Government of Nigeria, designed to provide affordable and accessible financing for MSMEs. The scheme is administered by NIRSAL Microfinance Bank, which is a licensed microfinance bank under the CBN.
Under the Non-Interest Loan Scheme, MSMEs can access up to N200 million in funding with no interest charges. This means that borrowers only need to pay back the principal amount they borrowed. The scheme is available to all MSMEs in Nigeria that meet the eligibility criteria.
To access the loan, MSMEs are required to submit a business plan and a loan application form. The business plan should clearly outline the purpose of the loan, how it will be used, and the expected outcomes. The loan application form is available on the NIRSAL Microfinance Bank website, and interested MSMEs can submit their applications online.
One of the major benefits of the Non-Interest Loan Scheme is that it does not require any collateral. This makes it easier for MSMEs to access funding, particularly those that may not have the required collateral for traditional bank loans. Additionally, the loan has a longer tenor of up to 7 years, which provides MSMEs with the flexibility to repay the loan over a longer period.
Furthermore, the scheme provides additional benefits such as capacity building and business development services. This is aimed at supporting MSMEs to enhance their management skills and increase their chances of success. The services provided include training, coaching, and mentoring.