Forum

Bcd · 2023-02-05T08:48:54Z

The MSMEDF (Micro, Small & Medium Enterprises Development Fund), introduced bty CBN is a viable source of finance for small businesses in Nigeria. However, information is power. And I have brought useful data about the MSMEDF. Two years ago, the Central Bank of Nigeria (CBN) introduced the MSMEDF and set guidelines to direct low-yielding funds to MSMEs through participating financial institutions to improve their access to financial services. These guidelines are set for new businesses, business growth, and reviving struggling companies, and they align with the provisions of the Banks and Other Financial Institutions Act (BOFIA (1991) and the principles of Non-Interest Financial Institutions (NIFIs). The goal is to increase the productivity and output of these micro-enterprises, create jobs, and promote inclusive growth. Prospective borrowers can approach Participating Financial Institutions (PFIs) of their choice to apply for the Micro Small and Medium Enterprise Development Fund (MSMEDF). PFIs: Participating Financial institutionsThese financial institutions serve two groups: Micro entrepreneurs and SMEs-Micro entrepreneurs (i. e. borrowers seeking loans of less than N500,000) are to approach any of the four institutions: Microfinance Banks NGO/Microfinance Institutions Financial Cooperatives Finance Companies Small and Medium Enterprises (SMEs): Prospective borrowers seeking between N500,000 and N50million.are to approach any of these institutions: Deposit Money Banks Bank of Industry (BOI) Bank of Agriculture Types of businesses that can be financed under the FundAgricultural value chain activities, Manufacturing & Cottage Industries, Artisans, Services, Trade and general commerce, Renewable energy or energy-efficient products and technologies, and Any other income-generating projects as may be prescribed by the CBN. Important information borrowers need to knowProspective borrowers are to provide the required documents including collateral for SME loans; PFIs will appraise loan applications, approve and forward loan requests of borrowers to the CBN for the release of funds; MSMEDF will only release funds to borrowers through the PFIs; The account of benefitting borrowers shall be credited by the PFIs within 5 working days upon the release of Funds by MSMEDF to the PFI; Loans shall be granted at an interest rate of 9.0% per annum (all charges inclusive) irrespective of the type of eligible activity financed; Borrowers shall be expected to pay back all loans as and when due inclusive of any accrued interest to the PFI; and The MSMEDF/CBN will recycle all fully repaid loans transferred to it by the PFIs. Learn more from the CBN MSMEDF guidelines at

Notifications

Clear all

MSMEDF: Viable loan source for your SME small business in Nigeria

Page 2 / 2 Prev

Last Post

RSS

Posts: 586

Dec 03, 2023 4:18 pm

(@_b7_)

Honorable Member

Joined: 2 years ago

:peaceout:

Posts: 36

7049580183

Dec 04, 2023 10:59 am

(@7049580183)

Eminent Member

Joined: 2 years ago

Good

Posts: 1390

Ernest

Dec 05, 2023 11:32 am

(@ernest)

Noble Member

Joined: 2 years ago

NICE 👍

Posts: 1390

Ernest

Dec 31, 2023 2:29 pm

(@ernest)

Noble Member

Joined: 2 years ago

Nice

Page 2 / 2 Prev

Forum Statistics

15 Forums

914 Topics

5,787 Posts

2 Online

336 Members

Latest Post: Introducing the Azaland Money-Smart Quiz - Check your score! Our newest member: Bubjuli Recent Posts Unread Posts Tags

Forum Icons: Forum contains no unread posts Forum contains unread posts

Topic Icons: Not Replied Replied Active Hot Sticky Unapproved Solved Private Closed

Forum

MSMEDF: Viable loan source for your SME small business in Nigeria

You Missed

Complete List of Federal Government Grants in Nigeria 2026

Federal Government Grant for Women Entrepreneurs in Nigeria 2026

Federal Government Agricultural Grant in Nigeria 2026

Nigeria Federal Government Grant for Students 2026