How To Apply for CBN N5 billion 100 for 100 Loan – The Central Bank of Nigeria (CBN) has launched a 100 Percent Production and Productivity Policy (PPP) for private companies with funding projects and can apply for up to N5 billion under this scheme.
Once the pinnacle bank can determine that the private company can have a significant impact on the economy through “performance indicators (KPIs)”, that company will be selected. CBN will screen and fund qualified private sector companies for 100 days and renew every 100 days.
How To Apply for CBN N5 billion 100 for 100 Loan
The Initiative, 100 out of 100 PPP, is a financial instrument designed to create financing and investment flows for businesses with the potential to accelerate a sustainable economic growth trajectory, accelerate fundamental transformation structure, promoting diversification and enhancing productivity.
How it works
The Central Bank of Nigeria is ready to select 100 private sector companies with projects that have the potential to significantly increase domestic output and productivity, reduce imports, increase non-oil exports and overall improvement of the foreign exchange generating capacity of the Nigerian Economy.
The bank-led initiative will be run every 100 days (i.e. quarterly) with a select group of new companies to fund the initiative.
The Initiative will be funded through CBN’s Actual Regional Facility – Discriminatory Cash Reserve Claim Window (RSSF-DCRR) or other funding window as may be determined by CBN.
Loan will be a maximum of N5 billion per debtor and any amount above N5 billion will be subject to special approval by CBN management.
Monthly interest on physical basis is amortized and transferred quarterly along with principal payments to CBN. Intervention interest rate must not exceed 5.0%/year. (all inclusive) until February 28, 2022, after which the interest rate for the facility will return to 9% per annum. (all inclusive) from March 1, 2022.
How To Apply for CBN N5 billion 100 for 100 Loan
How CBN will monitor the company’s progress Peak Bank will carry out comprehensive and regular monitoring of specific benchmarks and key performance indicators (KPIs) for selected companies, including including: production growth rate, capacity utilization increase, export volume increase, export value increase, industrial raw material import decrease, industrial raw material import value decrease, and industrial raw material import increase. number of jobs created.
How to Apply
Interested private sector companies should submit an application to their PFI with the required documentation, including but not limited to; Financial statements, certified copies of company registration documents showing the incorporation of the company with the Corporate Affairs Commission (CAC).
Other records include; Three (3) years of audited financial statements, including the company’s most recent management accounts. Proof of creditworthiness of the company, promoters and directors and at least two (2) credit reports of the company and directors.
The applicant must provide a business plan of the basic project to which the facility will be applied as well as a detailed progress report on project capacity utilization, production, productivity/efficiency levels , employment, export capacity and value creation.
The top bank will also consider the increase in capacity utilization, production, productivity/efficiency levels, employment levels, export capacity and value creation after funding must be expected. to demonstrate the post-financing economic benefits of the project.
How your application will be processed and approved Once the lender receives your application, an assessment will be conducted based on business activity and creditworthiness. The lender will then forward applications from their qualified private companies to the CBN for approval by the appropriate PFI’s credit committee.
How To Apply for CBN N5 billion 100 for 100 Loan
CBN will select and fund qualified private sector firms for 100 days, with renewals every 100 days. CBN will transfer the approved amount to the PFI for further disbursement to selected private sector companies and successful beneficiaries will be advertised in national newspapers for verification and identification by Nigerians. obtain details of the facility granted, area of operation, sponsored production activities and PFI.
Applicants should notify the CBN of applications submitted through this website link.
