3 Steps To Get Agric Loans In Nigeria
Irrespective of the fact that there is a public cry for farming even by the Government, a lot of farmers still find it hard to get their hands on loan possibilities and even secure one. Despite the fact that the Central Bank of Nigeria has allocated about 200 billion to the funding of the Agricultural sector, a lot of farmers are still impoverished. The growth of Agriculture is in the appropriate funding and clearly, the government has knowingly provided funds for their expansion.
The first challenge here in getting the loans is in knowing that there are loans to be gotten in the first place. Most farmers are not informed of the many possibilities available to them hence the spread of a very wrong notion that there is no allocation for them.
How to access and secure Agric loans in Nigeria
Identify Loanable Businesses
There is the need to know what type of Agricultural business is open to Agricultural loans. Businesses like, cassava farming, fish farming, poultry farming, cotton farming, oil palm farming, pig farming, maize farming, rice farming, snail farming, and a lot more are readily open to the giving of loans.
Visit the Financial Institutions Responsible for Loans
Then, you need to visit The Bank of Agriculture (BOA) to know the requirements and what it takes before applying for a loan. Some of their requirements is that you need to have banked with them for at least 6 months. You must also have saved at least 20% of the amount you intend to loan from the bank.
Get Familiar With Loan Rates
This will give you an inkling of the kind of financial planning you should adopt. Some financial institutions like commercial banks have a higher loan rate than that of Agric banks. Also, the loan rate for the micro credit agricultural loan is usually 12%. When you visit your state’s Bank of Agriculture (BOA), you can get more detailed information on how to apply for the loan. If you don’t have time to visit your local Bank Of Agriculture (BOA) branch, you can call the BOA on 07042262222 or 07040202222.
Also, it is important to know that some commercial banks through the Federal Government and other bodies offer Agricultural microloans to farmers in Nigeria. Such banks include Union Bank, United Bank For Africa (UBA), Stanbic IBTC, First Bank, some other banks, and several micro-finance banks.
These loan institutions will require those existing farmers present a financial statement showing their income statements so far. New farmers would need to present a viable business plan for the bodies to review.
Being a member of FADAMA, and/or applying for Youth Based Initiatives loans are also a great way to get agricultural loans in Nigeria.