There are several credit and loan facilities provided by the government to help farmers access funds to improve productivity on their farms. One of them is funds from Bank of Agriculture, Bank of Agriculture (BOA)Limited is Nigeria’s premier Agricultural and Rural Development Finance Institution. It is owned by the federal government and one of its main aims is to provide access to funds for farmers and Small business enterprises in Nigeria.
The Bank of Agriculture providers various types of loans, some of which are agri-related while others are designed to support small scale business.
Types of loans provided by this financial institutions include:
- Cooperative & farmers group loans
- On- lending loans
- Agricultural micro loans
- Non-agricultural micro loans
- SME loans
- Collaboration –funded & guaranteed collaborations
- Farmers engaged in different sectors of agriculture such as farming, live stock production, export and marketing of produce, fisheries, horticulture can access loans which are specifically designed for agricultural businesses. While trader, artisans and other non agricultural business owners can access loans designed for non-agricultural incentives. This loans can be accessed as soft loans under the Micro credit loan scheme.
- Micro credits are loans not exceeding N 250,000.00 for a period not exceeding two (2) years depending on the project type, Under this scheme, loans can be granted to individuals and members of co-operative societies/groups.
- Prospective borrowers are expected to provide two (2) acceptable guarantors & 20% lien deposit. Individuals can access credit facility of up to maximum of a N 5,000,000.00 mainly for Agricultural Projects, with provision of collateral. Other schemes include Grow and Earn More, Collaboration and Special Credit e.t.c
The interest rate can be varied according to the market rate, at present, the following are BOA interest rate:-
- 14% per annum for SME Agricultural production
- 14% per annum for SME Agro-processing
- 20% per annum for SME Agriculture Marketing
- 12% per annum for Micro Credit Loans agric
- 20% per annum for Micro credit loan (Non Agric)
- 14% per annum for YARN & GEM products
REQUIREMENT FOR THE OPENING OF ACCOUNTS
Requirements for accessing loan and credit facilities in Nigeria
Documents required for opening account for access to loans for farmers include:
- Completed and signed Account Opening Form
- Completed Mandate / Signed Card
- 3 (Three) recent passport photographs
- A recent copy of Utility bill ( PHCN, Water ,etc.), photocopy only required
- Signed Letter to the Bank
- Signed Letter Of Set-Off
- A photocopy of means of identification (National I.D Card, International Passports or Driver License)
- At least, a minimum of N3, 000.00 as Initial Deposit.
- Completed and Signed Account Opening Form
- Completed Mandate / Signed Card
- Three (3) recent passport photographs each from the Executives
- A recent copy of Utility bill ( PHCN, Water etc), photocopy only required, to be submitted by the each of the Executive
- Resolution to open Account with the Bank
- Copy of Rules or Constitution ( Original copy to be sighted)
- Memo and Articles of Association( Original copy to be sighted)
- Certificate of Registration / Incorporation( Original copy to be sighted)
- At least, a minimum of N10, 000.00 as Initial Deposit.