#FarmersAdviceSeries: How to access loans for your Agribusiness


Thanks for this because I see it as one of the key point on loan evaluation.


Maximum limit of N10m at 5% for a maximum tenor of five years


How much you can get depends on your capacity and the size of your business operation. remember .the business would need to pay back. so do not overburden the business with loans


Mine is an ongoing drinks processing factory and I have suffered frustration from my commercial bankers and BOA. Why will this situation be any different?


How should farmers manage their loan if granted because I believe the financier will be monitoring the progress of the business.


pls be specific with the kind of frustrations you have experienced. Is your business registered with relevant organisations, do you have sufficient collateral as banks will not give BOI Bank Guarantee if you do not give them collateral. Where are you located? Is your product already in the market or is it a new product?


6i already have standards structure for 6000 birds,i just graduated so fUnding as been my major issue I currently have only 500 laying birds,i fully understand the layer business and I have up to date records on my production as well as sales,i really need this loan to increase my flock,where can I start from


For us in Union Bank, we undertake periodic project monitoring and also offer advisory support to ensure project success. it is important for the farmer to use the funds for exact project. Most projects fail as a result of funds diversion and this is very common in agriculture


Please take the AGSMEIS route. you stand a good chance.


Please sir, is the percentage interest rate flat or compounded?


Commercial banks interest rates are usually on reducing balance and per annum.


Thought to share…the Tony Elumulu Entrepreneurship programme (TEEP) is on and it is possible for you to access some level of funding . please give it a push.


Apparently the farmer should plan carefully and regularly compare the cash flow projections with the actual flow. If there are large discrepancies, they must communicate with their financier.They should also manage their price risk to optimise cash inflow.


We are Nafdac certified to produce Zobo drinks and we are based in Port Harcourt. We built up the business and equipped with personal funds but needed funding for working capital requirements. I applied for working capital to both our bankers FBN and FB, but they declined. FB said that I should just keep trying having come so far. BOA said that they had challenges retrieving their loans and are no longer liquid. BOI stated that their interest is on purchasing equipment and not to fund my working capital needs. We have been operating for 2 and a half years.


Correct. It is good to walk through the curve with your bank. That way , itis easy to understand where the challenges are coming from.


Great. I heard about this too and I’m planning to work on it. Thank you.


How can I register with d EDI


You said some of 2year audit statements… Not everybody business is up to dat level


My parting words: Do not loose hope. Keep your agri-enterprises going from where you are and funding will eventually come. Get to know your market and industry very well. The opportunities are actually limitless and folks engaged in primary production should upscale to some level of processing or value addition. For us in Union Bank, our doors are open to work with YOU all the way to unimaginable success.

Thank you and its been a worthwhile 1 hour sharing and learning from you all.


That is for businesses that have been operating for more than 2 years. For start-ups, look to the intervention schemes for support.