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How to Apply For Bank Of Agriculture Loan – Checkout Requirements

Are you an entrepreneur looking for business loan to finance your agricultural business in Nigeria? If yes then continue reading because in this article I will be taking you through How to get Bank of Agriculture loan and the basic requirement to fulfill.

Bank Of Agriculture Loan

 

About the Bank Of Agriculture

Bank of Agriculture is a Nigerian government own bank that provides credit facilities (loans) to both small and large scale farmers and small businesses within rural areas. An outcome of a restructuring of government sponsored microcredit institutions; the bank was formed in 2000 and assumed the assets of the National Agriculture and Cooperative Bank, People’s Bank and the Family Economic Advancement Project.

The bank of Agriculture takes pride in being largest development finance institution and leading agricultural finance institution in Nigeria. With over 40 years of experience in rural and agricultural finance, the BOA has some of the most lucrative agricultural loans in Nigeria.

Functions of Bank Of Agriculture includes:

• Provision of credit to support agricultural activities across the value chain
• Provision of non-agricultural microcredit
• The mobilization of savings
• Agriculture related capacity building

The BOA fulfills its role as the leading agricultural bank in Nigeria — with the help of over 201 retail outlets nationwide, 6 zonal offices and its headquarters in Kaduna.

The BOA partners with several other development finance institutions (DFIs) such as the Bank of Industry (BOI), the Central Bank of Nigeria (CBN) and the Development Bank of Nigeria (DBN).

How to Apply For Bank Of Agriculture Loan – Checkout Requirements

Types of Loans Offered by the Bank of Agriculture

The Agricultural loans offered by BOA, include the following.

Direct Credit Product

• Developed to finance agricultural productions and Agro-allied activities.
• Loan volume ranges from above N250,000.00 to a maximum of N50,000,000.00.
• Limit of N5,000,000.00 to individual persons.
• Above N5,000,000.00 to corporate organizations.
• Loan tenor not exceeding 5 years.
• Disbursement both cash and kind.
• For both individuals and cooperate bodies.
• Staggered disbursement.
• Backed up with a viable, profitable, and bankable business proposal.
• Agro-business must be a clause in the Memart of the company for corporate applicants.
• Security acceptable to BOA requirement
• Interest rate 14% for agricultural production and agro-processing while commodity marketing is 20%.
• A current tax clearance certificate required.
• Last 3 years audited statement of account or statement of affairs required.
• Consent to a mortgage of the landed property being pledged as security for the loan required.

How to Apply For Bank Of Agriculture Loan – Checkout Requirements

Large Credit Product

• Developed to finance large agricultural production and Agro-allied activities.
• Loan volume ranging from above 50 million to a maximum of 1 billion for a single obligor.
• Accessed by corporate bodies only.
• Loan tenor not exceeding 5 years
• Disbursement both cash and kind.
• Staggered disbursement.
• Backed up with a viable, profitable, and bankable business proposal.
• Agro-business must be a clause in the Memart of the company for corporate applicants.
• Security acceptable to BOA requirement.
• Interest rate 14% for agricultural production and agro-processing while marketing is 20%.
• Current tax clearance certificate required.
• Last 3 years audited statement of account or statement of affairs required.
• Consent to mortgage of the landed property being pledged as security for the loan required.

Youth Agricultural Revolution In Nigeria (YARN)

• Developed to encourage Nigerian Youths to key into agriculture and take it as an investment or business.
• The maximum loan limit under this product is N1 million per beneficiary.
• The beneficiaries must be small holders as defined under the Nigeria Incentive Risk Sharing for Agricultural Lending (NIRSAL) guidelines.
• To facilitate unhindered access by these target groups, the beneficiaries need not have collaterals but must provide acceptable guarantors.
• The loans are accessible by individuals or groups. The individuals in the group can get N1 million each subject to technical determination of scope and financial requirements of the project.
• The loans can be accessed by individuals and groups in line with NIRSAL Credit Risk Guarantee (CRG) and Interest Draw Back Program (IDP).
• Loan period, Grace or Moratorium on the products will be determined based on the project type.
• NIRSAL provides 75% credit guarantee.
• Interest Rate 12%.

Grow And Earn More (GEM)

• Developed to encourage Nigerian women to key into agriculture and take it as a business.
• The maximum loan limit under these products is N1million per beneficiary subject to technical determination of the scope and the input requirements.
• The beneficiaries must be small holders with the required land for cultivation or any of the value chain products.
• To facilitate unhindered access by these target groups, the beneficiaries need not have collaterals. In lieu of this, there will be collateral substitutes such as adequate and acceptable guarantors with verifiable income, NIRSAL Credit Risk Guarantee to cover 75% of loan delinquency.
• The loans are accessible by individuals or groups. The individuals in the group can get N1 million each subject to technical determination of scope and financial requirements of the project.
• Loans Period, Grace or Moratorium on the products will be determined based on the project type and the gestation of the project.
• Interest rate is 12%.

Haulage Credit Facility

This Bank of Agriculture product, has been developed to support businesses engaged in the transportation of agricultural related goods. Businesses are able to access this loan in order to acquire trailers, lorries and related vehicles.

Hides and Skin Revival Credit Facility

With the Bank of Agriculture’s Hides and Skin Revival Credit Facility, investors can get access to funds that can be used to develop businesses — across the hide or leather value chain.
One of the aims of the scheme includes increasing the foreign exchange earnings of Nigeria, through the export of hides and leather.

Input Procurement Credit Facility

The Input Procurement Credit Facility, is aimed at helping businesses finance their purchases of inputs to agricultural production — across the value chain.
Eligible business activities include those related to purchasing breeder seeders, the supply of seeds to Nigerian farmers and the import/production of fertilizer.

Inventory Credit Facility

Through the Inventory Credit Facility, the BOA extends farmers credit for dry season income generating activities (after the harvest of produce).
Harvested produce is kept in stores or warehouses, and acts as collateral for the loan. Stored goods are insured. This can finance a short conversion cycle project.

Ranching Development Credit Facility

Through the Ranching Development Credit Facility, the BOA aims to support the National Food Security program. The introduction of this credit facility, will enable businesses to invest in the establishment of ranches around the country.
This will help Nigeria rear more cattle and sheep.

Sugar Revival Credit Facility

In its efforts to boost local sugar production, the Federal Government of Nigeria has conceptualized an initiative entitled “The Nigeria Sugar Master Plan”. The BOA is partnering with the National Sugar Development Council, to drive implementation of the program.
Under the scheme, funding can be provided to any business along the sugar value chain. Further, both individuals and corporate organizations are eligible for financing.
How to Apply For Bank Of Agriculture Loan – Checkout Requirements

Non Agricultural loans

The BOA also offers Non Agric loans, which include:
Micro Credit
• Loan size – Maximum of NGN250, 000.00
• Loan tenor – Short Term (not more than 2years)
• Interest rate – At Prevailing Rates
• Target group – Small holder farmers, petty traders, artisans, etc.
• Lien deposit – 20% of loan amount required
• Security – 2 reputable guarantors
• Must operate account with the Bank for a minimum period of 90 days
• The micro projects must be viable
• Can be accessed by Individual, cooperatives or self-help groups

BOARBI Model

• Entry level – N20,000.00 – N40,000.00
• Target Group – Rural active poor
• Loan tenor – Maximum of 10 months
• Lien deposit – 10%
• Interest rate – At Prevailing Rates
• Project types – Micro enterprise
• Approving authority – Branch Credit Committee
• Mode of collection – Weekly at Group Meetings
• Security – Cross guarantee of Group members
• Accessible only through women group

Bank of Agriculture Loan Requirements

The main requirement for all the loans is to have an active Bank of Agriculture account. What do you need to open one?
The following are the requirements for opening an Individual Savings Account:
• Two Completed Signature Cards.
• Four recent colored passport photographs each of authorized signatory duly endorsed by the account holder.
• Completed account opening package (To be provided at the Branch Office).
• In case of joint accounts, Signature cards are to be completed by all signatories with signing instructions e.g. “Both to sign”, or “Either to sign” or “Any two or three to sign,” clearly.
• In case of minors, four passport photographs should be included in the mandate.
• Provision of Means of identification i.e Voters Card, National ID Card, International passport, Driving License

Bank of Agriculture Loan Application Process

 

How To Apply

Interested applicants for Bank of Agriculture (BOA) loan should visit nearest Bank of Agriculture branch or outlet nationwide and with the assistance of BOA officials I’m sure an applicant that meets the banks requirement will get the loan.

BOA Website 

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6 Comments

  1. EJIOGU TOCHUKWU.P. EJIOGU TOCHUKWU.P. January 22, 2021

    please i need to start my chemist business again, and i this lone start how will i apply?

  2. Okwagbe Sakponome Stanley Okwagbe Sakponome Stanley March 14, 2021

    I need a to upgrade my poultry farm

  3. Regina Jerome Regina Jerome April 13, 2021

    Please am into pig farm, how can get the loan to sponsor my farm

  4. Danladi Musa Danladi Musa April 20, 2021

    Inanoma masara kawai

  5. Bola Akinfolarin Bola Akinfolarin April 20, 2021

    Cannot access website

    • ojootaru ojootaru Post author | April 24, 2021

      Try it again or contact Bank of Agriculture for more information.

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