Apply for N500k to N500M Federal Government Palliative Loan for MSMEs and Manufacturers

The Federal Government has announced the application for a federal Government Palliative Loan ameant to cushion the effect of fuel subsidy removal on Small and Medium Enterprises (MSMEs) and Nano busibesses respectively in the Country.

The government has been at the forefront of dousing hash economic conditions. In 2020, the Buhari government initiated the COVID-Targeted Credited Facility popularly known as COVID-19 Loan and the AGSMEIS Loan for Individuals as well as Micro, Small and Medium Enterprises as a way reducing the harsh economic condition caused by the COVID-19 Pandemic.

In the Tinubu Administration, the growth of MSMEs has also been considered as the removal of fuel subsidy bites the economy, forcing the MSMEs to suffer. This triggered the initiation of the Federal Government Palliative Loan.

About Federal Government Palliative Loan Programme

The N150b Federal Government Palliative Loan Programme is divided into two: N75bn for micro, small and medium-sized enterprises across various sectors, and N75bn specifically to manufacturers.

While MSMEs can access loan facilities up to N1m with a repayment period of three (3) years under the Federal Government Palliative Loan Programme, manufacturers can access up to N1bn for the purpose of financing for working capital with a repayment period of one (1) year for working capital or five (5) years for the purchase of machinery and equipment.

Types of MSMEs and Nano- business eligible to apply for the Federal Government Palliative Loan and Grant

1. Traders: These include single retail marketers, corner shop owners, petty traders, market men and women in open markets.

2. Food Services: These include food, fruits and vegetable vendors, etc

3. ICT: These include business centre operators, battery chargers, recharge card vendors, call centre agents

4. Transportation: These include wheelbarrow pushers, independent dispatch riders

5. Creatives: These include makeup artists, fashion designers, drycleaners.

6. Artisans: These include vulcanizers, shoemakers, painters, repairers.

Federal Government Palliative Loan Amount, Interest Rate and Duration/Repayment Period

i. Federal Government Palliative Loan Amount

MSMEs under non-manufacturing Sector can access up to N1Million in the Federal Government Palliative Loan Programme

MSMEs under manufacturing Sector can access upto N1bn in the Federal Government Palliative Loan Programme

ii. Federal Government Palliative Loan Interest Rate

The Federal Government Palliative Loan Interest Rate for both manufacturers and non-manufacturers is 9% Interest per Annum.

iii. Federal Government Palliative Loan Duration/Repayment Period

The Federal Government Palliative Loan term is 24 months for MSMEs and Manufacturers (Working capital), while Manufacturers (Asset financing) has a 60-month tenor with a six-month moratorium.

In the repayment of the Federal Government Palliative Loan, banks will ensure equal and consecutive monthly repayment of principal and interest for the tenor of the loan.

How to Apply for Federal Government Palliative Loan

1. Open https://www.fedgrantandloan.gov.ng

2. Select "See Loans"

3. Or open the Federal Government Palliative Loan link directly through https://loan.fedgrantandloan.gov.ng

4. Select type of business.

5. Create Account on the Federal Government Palliative Loan application portal.

6. Fill in Business information, Business Owner(s)/Directors, Provide information about what the loan will help your business with.

7. Submit Federal Government Palliative Loan application form after completion.

8. Wait for disbursement.