The Central Bank of Nigeria (CBN) introduces a stimulus package to support households and Micro, Small and Medium Enterprises (MSMEs) affected by the COVID-19 pandemic
The Coronavirus Disease (COVID-19) pandemic has led to unprecedented disruptions to global supply chains, sharp drop in global crude oil prices, turmoil in global stock and financial markets, massive cancellation of sporting and entertainment event, lockdown of large swaths movements of persons in many countries, and intercontinental travel bans/restrictions across critical air routes across the world.
These outcomes have had severe consequences on households’ livelihoods and business activities, resulting from drop in global demand, declined consumer confidence and slowdown in production.
In this respect, the Central Bank of Nigeria (CBN) introduced the N50 billion Targeted Credit Facility (TCF) as a stimulus package to support households and Micro, Small and Medium Enterprises (MSMEs) affected by the COVID-19 pandemic. Here’s all you need to know about how to apply for COVID-19 TCF Loan.
COVID-19 TCF Loan Application Method
The application method for COVID-19 TCF Loan is vested on the eligibility. The eligible applicants includes:
- Households: Households with verifiable evidence of livelihood adversely impacted by COVID-19
- SMEs: Enterprises with bankable plans to take advantage of opportunities arising from the COVID-19 pandemic
To apply for COVID-19 TCF Loan, the first step is to submit an application. The process is easy. You can begin on your phone, your tablet or your laptop. Submit applications directly to NIRSAL Microfinance Bank (NMFB) with clear evidence of the opportunity or adverse impact as a result of COVID-19 pandemic OR Visit Application Portal for COVID-19 loan
The Step 2 is to get approval: The approval process involves that they review your application and forward the application to the CBN for final approval.
The next Step is disbursement: The CBN reviews applications and gives final approval for disbursement to NMFB
How much can I access? Households can access a maximum of N3 million. Loan amount to SMEs shall be determined based on the activity, cashflow and industry/segment size of beneficiary, subject to a maximum of N25 million.
The working capital of the COVID-19 TCF Loan shall be a maximum of 25% of the average of the previous 3 years’ annual turnover. (where the enterprise is not up to 3 years in operation, 25% of the previous year’s turnover will suffice). The working capital will be for a maximum period of one year, with no option for rollover. Term loans have a maximum tenor of not more than 3 years with, at least, one-year moratorium.
