First Bank Commercial Agriculture Credit Loan Scheme – How to Apply

Are you looking for guidelines on how to apply for First Bank Commercial Agriculture Credit Loan Scheme? If yes, you are at the right place.

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First Bank Commercial Agriculture Credit Loan Scheme - How to Apply

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The Federal Ministry of Agriculture and the Central Bank of Nigeria (CBN) developed the Commercial Agriculture Credit Scheme (CACS) facility, an unique credit intervention fund to support agricultural enterprises to hasten the development of Nigeria’s agricultural industry by offering loan facilities to commercial agricultural firms at a single digit interest rate.

To achieve this the Federal Government also partners with the First Bank of Nigeria as a medium to channel this fund to the respective farmers being an agric-loving bank.

First Bank Commercial Agriculture Credit Loan

First Bank also values farming and other agricultural activities, hence it is ever ready to assist farmers in achieving their objectives whether you are involved in the production of cash crops, arable farming, livestock, or even mixed farming.

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The primary agricultural products covered by the Program are:

Processing: Threshing, Feed-mills Development, Pulverization and other forms of transmutation for value addition.

Production:

Aquaculture: Catfish and Fingerlings

Cash Crops: Cocoa, Cotton, Fruit Trees, Oil Palm, Rubber, and Sugar Cane

Food Crops: Beans/Millet, Cassava, Maize/Soya, Rice, Tomatoes, Vegetables, and Wheat

Livestock: Dairy, Meat, and Piggery

Poultry: Broilers and Eggs Production

Storage: Agro-Chemicals, Commodities, and Warehousing.

Farm Input Supplies: Breeder Stock, Feeds, Farm equipment & Machineries, Fertilizers, and Seeds/Seedlings.

Marketing: Agricultural products included in the priority investment sectors

Characteristics of the Scheme

The interest rate is in the single digits (9% maximum).
For medium- and large-sized private sector businesses, there is a single obligor limit of up to N2 billion, while for state governments, it is N1 billion.
A minimum farm asset base of N50 million must be held by the participating private sector organization (excluding farmland).
For State Governments, an Irrevocable Standing Payment Order (ISPO) is necessary.
Money accessible through 2025.
Up to a 5-year loan term.

What are the Basic Requirements

Below are the basic requirements for applying for this loan:

1.) Formal application for a credit facility: it is very crucial that you must, of course, submit a formal application letter for this program, which should include the following information: the name of your company, its founding date, the type of agriculture you are involved in, the amount required, the proposed loan term, and your projected payment schedule.

2.) Certificate of Incorporation: to access this fund First Bank need to confirm that your company is CAC-registered. Furthermore, if you registered under a business name, there is no issue as long as you are an incorporated firm with a management structure and have been in existence for a minimum of three years.

3.) Memorandum and Articles of Association: The “Memorandum of Association,” also known as MOA or simply “AOA,” is the foundational document of the business and contains all the essential information about it. The “Articles of Association,” also known as “AOA” is a document that contains all the rules and guidelines established by the business. Now that we have this description and the amount you wish to request, these documents demonstrate the legitimacy of your organization, list your shareholders, and describe the laws and regulations that govern your business.

4.) Board Resolution to Borrow: If you have provided the MOA and AOA, it means that your board is made up of individuals who have been chosen. Your loan application must include a resolution approved by the board of directors and/or stockholders of a corporation or other organization authorizing the officers to get a loan from a financial institution for you to be eligible for the loan.

5.) Business plan/feasibility study: last but not the least, the first bank is interested in helping you expand your company, and for the bank to determine how well-prepared you are for the loan, the Bank’s team of advisors needs to see your business plan.

If you have all of these documents accessible, all you need to do to apply for the loan is walk into any FirstBank location nationwide or send an email to agric@firstbanknigeria.com.

How to Apply

To apply for this fund, you can as well visit www.firstbanknigeria.com

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First Bank Commercial Agriculture Credit Loan Scheme – How to Apply