Agricultural Credit Guarantee Scheme Fund (ACGSF) for SMEs in Nigeria

Agricultural Credit Guarantee Scheme Fund (ACGSF) for SMEs in Nigeria. The agricultural sector is a vital part of the Nigerian economy, providing employment opportunities for millions of people and contributing significantly to the country’s GDP. However, small and medium-sized enterprises (SMEs) in the agricultural sector often struggle to access financing, which can hinder their growth and development. To address this issue, the Central Bank of Nigeria (CBN) established the Agricultural Credit Guarantee Scheme Fund (ACGSF), which provides loans to eligible SMEs in the agricultural sector. In this article, we’ll provide an overview of the ACGSF and how you can apply for the loan.

What is the ACGSF?

The ACGSF is a loan scheme established by the CBN in 1977 to provide financing to SMEs in the agricultural sector. The fund aims to enhance agricultural production and processing, reduce the cost of credit to agricultural producers, and promote job creation and economic growth. The loan can be used for a range of purposes, including crop production, livestock farming, fisheries, and agro-processing. The interest rate is set at 9% per annum, and the repayment period is up to five years.

Who is eligible for the ACGSF loan?

To be eligible for the ACGSF loan, your business must meet the following criteria:

1. Be a registered business in Nigeria.
2. Have a valid Bank Verification Number (BVN).
3. Have a satisfactory credit report.
4. Have a viable business plan.
5. Be engaged in agricultural production, processing, or marketing.
6. Have a minimum of 5 hectares of farmland or own at least two tractors, or be a registered cooperative society.

How to apply for the ACGSF loan

To apply for the ACGSF loan, follow these steps:

1. Visit the CBN website or the website of any of the participating financial institutions.
2. Download and complete the application form.
3. Submit the completed application form and all required documents to the nearest participating financial institution.
4. Await feedback from the financial institution on the status of your application.

Required documents for the ACGSF loan application

When applying for the ACGSF loan, you’ll need to provide the following documents:

1. Completed application form.
2. Business plan.
3. Bank statements for the past six months.
4. Tax clearance certificate.
5. Certificate of incorporation.
6. Memorandum and Articles of Association.
7. Evidence of collateral, such as landed property or a personal guarantee.
8. Evidence of agricultural activities, such as land ownership or a tractor registration certificate.

Conclusion

Access to finance is critical for SMEs in the agricultural sector to grow and contribute to the Nigerian economy. The ACGSF loan scheme is an excellent opportunity for eligible SMEs to access low-interest loans that can help them expand their agricultural businesses. If you’re an eligible SME, follow the steps outlined in this article to apply for the loan and take your agricultural business to the next level. For more information and to apply for the ACGSF loan, visit the CBN website or the website of any of the participating financial institutions.