#FarmersAdviceSeries: How to access loans for your Agribusiness


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Kindly peruse the above table and have a full grasp of all available intervention schemes that are opened to businesses across the entire agricultural value chain




Please has the meeting started?


My sense is that since most members of this community are largely start-ups and growing agribusinesses, lets limit our discussion on AGSMEIS



The broad lending parameters: -

  • Target Businesses: Start-ups, expansion of established businesses and revival of ailing companies
  • Eligibility Activities: Businesses across the agricultural value chain, covering production, inputs supply, storage, processing, logistics and marketing
  • MSMEs in the real sector including manufacturing, mining and petrochemicals
  • MSMEs in the service sector including information and communication technology (ICT) and the creative industry
  • Eligibility Criteria: Be a graduate of a recognized EDI registered with Corporate Affairs Commission/Government EDI
  • Obligor Limit: Up to N10m (depending on the specific need)
  • Interest Rate: 5%
  • Tenor/Investment Period: 1-2years, Maximum period of 10 years.


AGSMEIS – Process Flow
I. An eligible applicant will identify a recognized EDI registered with Corporate Affairs Commission / Government EDI within his/her locality and undergo the requisite training
II. After completion of training, the eligible applicant will prepare a business plan to include equipment details, complete AGSMEIS loan application form and submit to the EDI
III. Beneficiaries are expected to open current account with Union Bank Plc
IV. The EDI shall collate and appraise the loan requests, populate excel sheet in the recommended format and forward original application forms and excel sheet (electronically) to the CBN Head Office or any of the CBN branches nationwide.
V. Development Finance Office of CBN reviews form and excel sheet for correctness and upload data on the database
VI. CBN shall forward provisional approved applicants list to Union Bank for confirmation of banks details.
VII. Union Bank shall send confirmation for purchased equipment to CBN
VIII. Union Bank shall book loan and disburse working capital to beneficiaries within 5 working days.
IX. Use the purchased equipment as collateral which should be registered on the National Collateral Registry (NCR)
X. Ensure equipment are insured with a reputable insurance company.


sir, have been on the agric business for almost 4 years but have been having challenges accessing loan even grants from the FG. What and what should or will be done to get a way out of these mess so, me too can start employing people


What is EDI. And how can i register for it?


I suggest you look at why you have not been able to attract any funding. Re-work your business plan, look at your cashflow and be able to present a bankable project with a realistic cashflow and fundamentals that financiers are looking out for. it is important that you do not load your request largely with CAPEX with no prove of how to finance the working capital element that will operationalise the CAPEX.


What is d chatting site


EDI or EDC stands for Entrepreneurial Development Centre or Institute


All agricultural financiers have to manage their credit risk. Sir, to this what are the credit assessment criteria that financiers, especially commercial banks, usually apply when evaluating a farmer’s credit application as a startup ?


Key areas of consideration by Financiers*

  • Capacity: (Track records on the business or verifiable evidence that staff with requisite skills and qualifications would be hired or evidence of Technical Assistance from an expert organization.
  • Records/Book Keeping: Evidence of sales proceeds as well as receipts for inputs
  • Markets: Evidence of markets for your product or service, offtake agreements from prospective buyers or evidences of previous purchases from your customers.
  • Business Plan: Detailed and concise document giving an overview of the business, the management, it’s goals and a roadmap on how the goals would be achieved.
  • Repayment Plan: A document indicating when and how the loan would be repaid
  • Second way out: this talks about how the business intends to pay back the loan should the proposed business fails e.g. Insurance, Secondary cashflow from other businesses/employment, Collateral etc.
  • Financial Statement: These are written records that convey the business activities and the financial performance of a company. This is a requirement required by most financial institutions and its used to evaluate a company’s financial health and earnings potential.


please see my last post. i think that answers your question


For businesses that have transcended the start-up phase, please see below the requirements for a loan from a commercial bank:

Documentation Requirement for Accessing loans from Commercial Banks

  • Request letter stating amount required, proposed loan period, purpose of the loan and repayment plan.
  • Company’s Board Resolution to borrow
  • Detailed business plan and realistic cash flow projection with clear assumptions
  • 2 years Audited accounts and management account for 2018
  • Company’s application letter with details of credit facilities required
  • Feasibility reports/ Business Plan/ Fund utilization schedule
  • Statement of account from other Banks
  • Cash flow projection (in excel format) for the requested tenor. Cash flow projection should include repayment based on existing cash flows and repayment incorporating projected income
  • Company’s certificate of incorporation
  • Proforma invoices for the items you are purchasing e.g. machinery, Feeds/inputs, and Bill of Quantity for construction works


yes, i will continue to ask you more, as i digest it


*Why EDI/EDC is your organization working with *How can one get to meet them

  • What is/are the criteria