President Buhari administration from inception promised to diversify the economy and he promise to do so by investing in agriculture, the need to augment the country’s domestic products through agriculture thus cannot be overemphasized. Many countries in the world have developed their economy to enviable degrees cultivating lands and monetizing the products. Which puts a challenge to Nigeria year after year to move a little concentration from crude oil to agriculture.
However, the agricultural sector is noted as the highest employer of labor in West Africa, yet, it is not much more than peasant farming which could barely satisfy the needs of families. These reasons and more have propelled the Federal Government of Nigeria to start agricultural grants and credit initiatives. Through the Bank of Agriculture and some other commercial Banks, the Central Bank of Nigeria (CBN) mapped out at least N200 billion yearly for Agriculture in Nigeria.
There are so many other farm opportunities to be reckoned with. Whichever one you choose, follow the steps below to get the fund you need to cultivate it.
There is a bank in Nigeria called the Bank of Agriculture (BOA), it was established to help farmers develop their fields to any extent possible by giving low interest loans to qualified applicants.
The process of borrowing from BOA is not rigid. BOA operates at a level of direct lending, on lending, collaboration, and credit monitoring, this bank is just like the bank of industry (B.O.I.)
Requirements for loans –
Loan Rate: Microcredit Agric and collaboration- 12%.Loan condition: Lien deposits- 20%.
Customer account relationship- 6 months.
Deposit Rate: Interest Rate 2%.
A lot of other things are negotiable, but remember; your loan credibility depends much on the evidence that you have what it takes to execute your agricultural proposal. You can reach BOA on 07042262222, 07040202222.
Agric loan is not exclusive to BOA, other commercial Banks have been partnering with the FG to assist Farmers. For instance-
Banks like UBA, Union and Stanbic Ibtc grants farmers loan easily
It will interest you to know that the above banks offers Agricultural financing to Agro-businesses, from small to big. But the starting point is: Evidence of ownership or right to use whatever portion of land you plan to use. Then you can choose from their Loan facilities what you really want-Short Term Loan: Which covers a short period of time, say- 1 or 2 years.
Medium Term Loan: This type of Loan exceeds the period of 1 to 2 years. Sometimes, it lasts up to 4 years due to the technicalities involved in the business it is being funded with.
Long Term Loan: This type of loan is for Agric products that take longer time to mature.
Fixed Capital: Farmers get this type of Loan to enable them establish fixed assets on their farms.
Working capital Facility: This Loan is given to enable Farmers shoulder their day to responsibility in the farm.
Whatever your objective is, these facilities will enable you to achieve it, so far you meet up with these requirements- Below is the guideline on how to get loan in Union bank Nigeria.
- Open an account with Union Bank
- Submit a Loan application to the branch’s Business Development Manager
- Pay 10% of the total fund you applied for
- State the purpose of the Loan
- Method of your farm production
- Yields as expected
- Your repayment plan
- Submit a loan application written with the company’s letter head to the Branch. It must be duly signed by the company’s representatives.
- Submit detailed report on feasibility studies
