How To Apply For N50,000 Federal Govt Grants, Loans For Nano Business

The Federal Government of Nigeria under the supervision of the Federal Ministry of Industry, Trade and Investment, is rolling out two initiatives – the Presidential Conditional Grant Program & the Presidential Palliative Loan Programmed .

The minister of Industry, Trade and Investment, Dr Nkiruka Uzoka-Anite said the programmes aim to alleviate the effects of the fuel subsidy removal.

Nano businesses will receive N50,000 grant, while MSMEs and manufacturers will access loans up to N1 million and N1 billion respectively

The target beneficiaries are 70% women and youth, 10% people with disabilities, and 5% senior citizens, while the remaining 15% is distributed to other demographics.

Who Cane Apply?

Businesses that fall into the six categories below can apply.

1. Traders
2. Food services
3. ICT
4. Transportation
5. Creatives (makeup artists, fashion designers and dry cleaners.)
6. Artisans (vulcanizers, shoemakers, painters, repairers).

Grant Eligibility Criteria

1. Own a nano business.
2. Operate a business with progressive economic potential, and desire to grow the business.
3. Be willing to engage at least one additional staff member if turnover increases
4. Be willing to provide proof of residential/business address in the Local Government Area
Provide relevant personal and bank account information, including Bank Verification
(BVN) for verification of identity
5. Meet the application submission deadline.

Additionally, find instructions on how to complete the loan application form and the process to apply.

This is a complete guide to assist you in accessing government financial support.

Who can benefit?

This scheme targets a wide range of sectors, opening doors for diverse entrepreneurs across the country. Whether you’re a retail marketer, food vendor, fashion designer, vulcanizer, or anything in between, there might be a loan or grant waiting for you in the following sectors:

Traders: Retail marketers, corner shop owners, petty traders, market men and women
Food Services: Food, fruits, and vegetable vendors
ICT: Business centre operators, battery chargers, recharge card vendors, call centre agents
Transportation: Wheelbarrow pushers, independent dispatch riders
Creatives: Makeup artists, fashion designers, dry cleaners
Artisans: Vulcanizers, shoemakers, painters, repairers

Loan Eligibility and Features

For Loans up to 1M

Eligibility Criteria: Existing businesses must be operational for at least one year, while startups require registration and specific financial documents.
Security: Personal Guarantee and acceptance of BVN Covenant.
Repayment: Monthly installment over 3 years.

For Manufacturers up to N1billion

Eligibility Criteria: At least 6 months of business banking relationship and required documentation.
Security: As required by the bank.
Repayment term: Varies for asset and working capital financing.

Key Features

Transparent and Efficient: Ensuring quick disbursement to deserving businesses.
Digital Transformation: Easy access and application through smartphones, computers, and the official website www.fedgrantandloan.gov.ng
Financial Literacy: Providing resources and training for effective fund management.

What to remember:

Qualification Check: Carefully review the eligibility criteria on the website before applying.
Loan Terms: Understand the repayment terms, which vary depending on the loan type (36 months for MSMEs, 12 months for working capital, and 60 months for asset financing with a 6-month moratorium for the latter).
Interest Rate: The loan carries a 9% per annum interest rate.
Age Limit: Applicants must be 18 years or older.
Processing Time: Applications typically take around two weeks to be processed, depending on the bank.

Federal Loan application Process

How to Apply: Visit www.fedgrantandloan.gov.ng and submit your application. Disbursement is done by your bank upon meeting the eligibility criteria.

Repayment and Follow-up

Repayment Terms: Monthly repayment of principal and interest.
Application Status: Check your profile and follow up with your bank.
Reapplication: Possible in case of minor issues in the initial application.

Frequent Asked Question – Presidential Conditional Loan

How do I access the loan?

Apply for the loan through the provided website www.fedgrantandloan.gov.ng while disbursement will be done by your bank if you meet the eligibility criteria.

How will I know if I qualify?

The criteria are provided on the website www.fedgrantandloan.gov.ng

What are the terms of the loan?

The loan term is 36 months for MSMEs and Manufacturers (Working capital) is 12 months, while Manufacturers (Asset financing) has a 60-month tenor with a six-month moratorium.

What if I don’t meet the criteria? Will I be considered?

What is the interest rate of the loan?

9% per annum.

Is there a moratorium period?

There is a six-month moratorium period for Manufacturers applying for asset financing only.

What if I can’t pay back the loan?

The bank will apply all legal measures to recover the loan from the borrower.

Can I apply with a partner company?

Applicant must have a registered business either as a Sole proprietorship, Partnership, or a Limited liability company

Is there an age limit to application?

Yes, applicants/promoters of the company have to be 18 years and above.

How long will it take from when I apply to when I get the loan?

This is dependent on your bank; however, it is typically expected to take 2 weeks.

Can I apply with different companies?

No, multiple applications will be disqualified.

What are the repayment terms?

Equal and consecutive monthly repayment of principal and interest for the tenor of the loan.

How do I know the status of my application?

You can check the status of your application by logging into your profile. Once your application has been forwarded to your bank for processing, you should follow up with your bank for updates

Can I reapply if my application is rejected?

You may be able to reapply if the reason for the rejection is a minor issue. You will be notified of the rejection and advised to provide additional information.