How To Get Agricultural Loan in Nigeria
As it is now, the Nigerian society is turning to the Agricultural sector for the Economic growth and stability of the Nation. How To Get Agricultural Loan in Nigeria
Many graduates today have turned their attention away from the pursuing the conventional white collar job and that which the oil sector could produce. Now the attention is turning to the Agricultural sector. Now you should know that financing Agricultural activities for for commercial purpose is very expensive and therefore will require some amount of cash.
Anyway the banks are always there to bail people out. And that’s why there are lots of Agricultural development banks across the Nation. But getting loans from these banks are usually not easy. There but some processes that are involved in doing this. That is why i have decided to write this article to showcase to my audience how they can get loan from the bank on Agricultural purpose.
We are no longer new to the constant declining of the Naira against the US dollars. This is hugely a problem caused the over-dependence on oil revenues is what is currently a major problem weakening the Naira daily because of the recent crash in price of a barrel of crude oil in the international market. According to recent report, the agricultural sector is un-arguably the largest employer of labour in Africa and therefore is needed to diversify the economy.
According to our findings from the Federal ministry of Finance, the Central Bank Of Nigeria (CBN) releases around 200 Billion Naira in agric loans through the Bank of Agriculture and some other commercial banks to help fix up the problem of capital in farming business across the Federation.
These grants and loans were meant to to cover many of aspects of farming. These farming includes fish farming, poultry farming, snail farming, pig farming, oil palm farming, cotton farming, cassava farming, rice farming, Maize farming etc.
For those intending to get an agric loan, you are first and foremost advised to visit your state’s branch of Bank Of Agriculture (BOA) to make inquiries on what is needed to apply for it.
Some of the criteria for the possibility to obtain a loan is that such a person intending to acquire such a loan must have banked with BOA for a period of six months. In addition, the person must have saved not less than twenty percent of the amount he or she intends to get as loan.
Some other policies include the fact that new customers, you cannot be given loans above #150,000.
For those who will wish to get a loan deal for your existing farm, you must as a matter of fact have a documented records of every income and spending you will be intending to do.
If you are having a new farm and wish to get a loan deal for it, you must present to the bank (BOA) a solid business plan which i believe non-negotiable requirement.
I will be showing us some better way to get loan for Agric purposes in Nigeria. I have used this medium before. It is one of the fastest way to get loans from the banks. Now this what you should do. Get yourself hooked or registered in any Co-operative societies. Because sometimes it is very difficult for banks to give loans to individuals. So they prefer to give loans through agricultural co-operatives are not given on individual basis but as grants to the organization itself which then share it out based on contributory payment. I would also advised you try to locate FADAMA in your local government and be part of them.
Another source of loans i will advised you to go into for agric business is Youth Business Initiatives. But the issue here is that they will rather buy farm materials and input them to you as loan instead of granting to you raw cash.
Commercial banks in Nigeria ( like UBA, FirstBank, Stanbic IBTC etc) do offer credit facilities informs of loans to farmers for farming purpose. But you have to follow their laid down rules and procedures.