The good idea of take a loan is to startup business or expand on the basis of an adequate return for investment, to reflect the risks of defaulting.Entrepreneur should aimed at capacity building and economy development.
Getting loan from commercial banks in Nigeria are limit in nature due to collateral,as result Central Bank of Nigeria has introduced creative sector loan an initiative aimed at capacity building and employment creation for individuals and businesses currently into any of the following:Fashion,Information Technology,Movie Production,Movie Distribution Music and Software Engineering Student Loan.
The Creative Industry Financing Initiative (CIFI) is a loan scheme developed by CBN in collaboration with the Bankers’ Committee as part of efforts to boost job creation in Nigeria, particularly among the youth to provide access to long-term and low-interest financing for entrepreneurs.
Eligibility Requirement for Creative Industry Financing Initiative
The eligibility requirements to access the loan are
1.Be a part of the creative industry (fashion, music, movies, and information technology).
2.Registered with the Corporate Affairs Commission
3.Submit a comprehensive business proposal
4.Clean Credit Bureau Report with no unpaid obligations
5.Satisfactory CRMS report of owners, sponsors and directors
Prepare your business plan or statement on how much you want
for your business You can get a loan of up to:
a) N3 million for Software Engineering Student
b) N30 million for Movie Production business
c) N500 million for Movie Distribution business
d) Cover your rental/service fees for Fashion and Information
e) Cover your training fees, equipment fees, and
rental/service fees for Music business
Tenor of the loan
The tenor differs based on tiers but the maximum tenor is 10 years with interest rate of 9 % (all charges inclusive).
Period for the repayment of the loan:
a) For Software Engineering Student Loan, it is a maximum of
b) For Movie Production and Distribution, it is a maximum of ten
c) For Fashion, Information Technology (IT) and Music, it is a
maximum of ten years
How to apply for the loan
Interested entrepreneurs in fashion, music, movie production, and information technology should go to any bank in Nigeria of your choice to submit applications for approval and disbursement.
Please note: Each bank may require additional eligibility criteria. Upon receipt of the application and required documents, the processing bank is expected to carry out due diligence of the application and documentation. Successful applicants will be issued offer letters, which contain repayment schedules in accordance with the business dynamics.
Successful applicants are required to accept the offers from the CBN and satisfy all conditions precedent specified in the offer letter to draw down. Once the application is approved after submission CBN is mandated to release funds to the Participating Financial Institutions (PFIs) as agents of the Fund.
The PFIs will finance the eligible activity using any of the approved CBN non-interest financing products of NIFIs . The rate of return shall be fixed at 9% and will be shared amongst the parties involved at a ratio to be determined by CBN periodically.
PARTICIPATING FINANCIAL INSTITUTIONS (PFIS)
All non-interest banks (NIBs) and non-interest microfinance banks are eligible to participate under the initiative.