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The Federal Government recently opened applications for the Presidential Conditional Loan Scheme to Businesses in Nigeria (including Nano businesses) as part of the Presidential Palliative Program.
The Presidential Palliative Program is part of the FG’s effort to alleviate the effect of the removal of fuel subsidy by President Bola Ahmed Tinubu during his inauguration on May 29, 2023.
The Presidential Conditional Loan Scheme, according to the Presidency is a game-changer in economic empowerment in Nigeria which is aimed towards revolutionising financial support.
“The key features include – Transparent and Efficient: We prioritise transparency and efficiency, ensuring that funds are disbursed swiftly to deserving businesses,” the FG said.
“Digital Transformation: The platform leverages cutting-edge technology to make the entire process accessible through smartphones and computers, allowing SMEs to apply from anywhere.
“Financial Literacy: We understand the importance of financial education. Therefore, our platform provides resources and training to empower SMEs with the knowledge to manage their funds effectively.”
The target sectors for the Scheme or the businesses that are eligible to apply to the PCGS have also been spelt out by the FG.
“Traders: These include single retail marketers, corner shop owners, petty traders, market men and women in open markets,” the Federal Government stated.
“Food Services: These include food and vegetable Vendors; ICT: These include business centre operators, battery chargers, recharge card vendors and call centre agents.
“Transportation: These include wheelbarrow pushers and independent dispatch riders; Creatives: These include makeup artists, fashion designers and drycleaners; Artisans: These include vulcanizers, shoemakers, painters and repairers.”
To access the loan, interested and qualified candidates have been directed to apply through the provided website, https://loan.fedgrantandloan.gov.ng/.
The FG has disclosed that disbursement will be done by applicants respective banks if they meet the eligibility criteria.
The loan term is 36 months for MSMEs and for Manufacturers (Working capital), it is 12 months, while Manufacturers applying for asset financing only have a 60-month tenor with a six-month moratorium.
The interest rate of the loan is 9% per annum and on the issue of inability to pay back the money, the bank will apply all legal measures to recover the loan from the borrower.
To apply with a partner company, applicants must have a registered business either as a Sole proprietorship, Partnership or a Limited liability company.
On whether there is an age limit for the application, applicants/promoters of the company have to be 18 years and above.
Interested and qualified candidates have been directed to visit https://loan.fedgrantandloan.gov.ng/auth/loan-register to apply for the Presidential Palliative Loan Scheme.
On the loan application steps, applicants will have to sign up with their basic details and enter their business information with the necessary documentation.
They will then have to provide information about their business leadership (Directors) and also give information about what the loan will help their business with.
For more information, they have also been directed to visit https://loan.fedgrantandloan.gov.ng/ with the FG setting an application deadline of Sunday, 31st December, 2023.
