The truth is there are many young Nigerians out there that are ready to go into small and large scale agriculture but the issue still remains funding and access to loans. Though the Central Bank of Nigeria (CBN) allocated billions of naira for agricultural support programs but farmers are still finding it very difficult to access these loans.
Due to nepotism and so much government bureaucracy most farmers find the process frustrating. Well, this article will help you know what it takes to get these loans from government and other financial institutions.
The truth is not all Agric business attract loans today, so you should do proper research before you get into your choice of farming.
Some of the agricultural products that can give you access to agric loans in Nigeria are: cassava farming, fish farming, poultry farming, cotton farming, oil palm farming, pig farming, maize farming, rice farming, snail farming, and a lot more.
The next step is you need to visit your state’s Bank of Agriculture (BOA) to know the full agric loan requirements, and how you can proceed with your application for a loan.
Some things you need to know about the loan is; before you can gain access to the agricultural loan from your state’s Bank of Agriculture (BOA), 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. 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.
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It’s important to know that it’s not only the Bank Of Industry that is giving agric loans. Some commercial banks too do, but through the federal government and other bodies. Some banks that are offering agricultural micro-loans for farmers in Nigeria are Union bank, United Bank For Africa (UBA), Stanbic IBTC, First Bank, some other banks, and several micro-finance banks. These loan institutions will require that 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 part of FADAMA, and/or applying for Youth Based Initiatives loans are also a great way to get agricultural loans in Nigeria.
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Believe me when i say methods to access and get agric loans in Nigeria is near perfect for anyone looking to either expand his farm, or start up an agribusiness provided your business is feasible and has prospects. Also, ensure you draft a very good business plan.