How To Get Bank Of Agriculture Loans 2019: All You Need To Know
There is no way the Bank of Agriculture (BoA) will release a loan or grant to you without first confirming you are really a farmer in Nigeria. The bank of agriculture loans 2019 is to encourage farmers in Nigeria as well as provide access to capital for the development of the agricultural sector.
The bank of agriculture (BoA) is a federal government institution in Nigeria that provides credit for both large and small-scale farmers. Every year, the bank of agriculture makes available a specific amount of credit for farmers in Nigeria. You need to know that the bank of agriculture loans 2019 is no different from the previous years.
Read: CBN agricultural loan 2019: all you need to know
Although the bank of agriculture was restructured in the year 2000, it has actually been in existence since 1972. You need to also check out agricultural grants in Nigeria 2019 so that you get more information about agricultural credits
Bank Of Agriculture In Nigeria
Bank of agriculture came (BoA) into existence in the year 2000 but has been in operating under different names since 1972. The main objective of this credit institution is to provide credit to Nigerian farmers and also support the agricultural sector. This bank is jointly controlled by the Central Bank of Nigeria (CBN) and the Federal Ministry of Finance.
You need to know that the bank of agriculture is under the supervision of the Ministry of Agriculture in Nigeria.
Different Types Of Bank Of Agriculture Loans 2019
The bank of agriculture loans 2019 comes in different categories, so you need to identify the one that best suits your farming venture. Bank of agriculture provides the following credits to farmers in Nigeria:
- Agricultural microloans
- SME loans
- Non-agricultural microloans
- Cooperative and farmers group loans
- On-lending loans
- Agra-business loans, and
- Funded and guaranteed collaborations
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Bank of agriculture loans 2019: Agricultural microloans
The bank of agriculture through its agricultural microloans provides credit for both agricultural and non-agricultural activities in Nigeria. You can access this agricultural microloan as an artisan, trader, farmer, Agric produces marketing, etc. The agricultural microloans do not exceed N250, 000 for the term, not more than 2 years depending on the type of project. You can access this loan as an individual or as part of a co-operative group or society.
See: How to start oil palm plantation in Nigeria
It is important that you know there is a condition for the provision of 2 acceptable guarantors and 20 percent lien deposit.
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Bank of agriculture loans 2019: SME loans
The Nigerian bank of agriculture in its magnanimity also provides farmers with SME loans. This small and medium enterprises loan provides a maximum of N5 million for agricultural projects. You are required to provide collateral before you can access the loan.
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Bank of agricultural loans 2019: Grow and earn more (GEM) loan program
This particular initiative is targeted to improve the livelihood of Nigerian women. Its main objective is to improve the financial abilities of women in Nigeria. The maximum loan limit is N1 million with an annual interest rate of 14 percent. As a woman, you need to open an active account with the bank of agriculture at least 12 weeks before applying for this loan.
As an applicant for this GEM loan, you must note that the loan and grace period depends on the project type. Here, loans can be granted to individuals and members of groups. One good thing about the loan is that you don’t need to provide collateral but 2 acceptable guarantors. In order to be eligible for this loan, you need to have 10 percent lien deposit in the savings account.
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Bank of agriculture loans 2019: collaboration and special credit
Aside from the direct disbursement of loans to farmers, the bank of agriculture also partners other agencies to improve the agricultural sector as well. This collaboration credit scheme involves an arrangement between BoA and other government agencies with the aim of providing the fund to identified groups or persons at a minimal interest rate.
There is usually a memorandum of understanding (MOU) as a condition for this type of collaboration in addition to the subject of the targeted group and in line with BOA lending conditions.
Requirements For Accessing The Bank Of Agriculture Loans 2019
You need to know that there are different requirements for opening an account with the bank of agriculture in order to access the loans. These requirements include the following:
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Individual requirements
Before you can open an account with the bank of agriculture as an individual, you must meet the following requirements:
- You must have completed and signed an account opening form
- Ought to have to complete your mandate or signed card
- Provide three recent passport photographs
- A recent copy of your utility bill
- Signed letter to the bank
- A photocopy of a means of identification, for example, your national I.D card, international passport, or driver’s license
- Minimum of N3, 000 as an initial deposit
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Requirements for corporate societies, groups, clubs, companies, etc
Also see: How to rake millions from castor seed farming in Nigeria
In order to access the bank of agriculture loans 2019 as a group, here are the requirements such a group must meet:
- The group must have completed and signed an account opening form
- Complete mandate and/signed card
- A document showing the resolution to open the account with the bank
- Copy of the constitution ( Original copy to be sighted)
- The memo and articles of association (original copy to be sighted)
- A copy of the certificate of registration or incorporation ( original to be sighted)
- Minimum of N10, 000 as an initial deposit
The Interest Rates For Bank Of Agriculture Loans 2019
The different loan packages by the bank come with different interest rates which are very important for you to understand.
- 14% annual interest for SME Agricultural production
- 14% annual interest for SME Agro-processing
- 20% annual interest for SME Agriculture marketing
- 14% annual interest for GEM packages
- 20% annual interest for Non-Agricultural Micro Credit Loan
- 12% annual interest for Agricultural Micro Credit Loan
You can always visit the branch of BOA closest to you for more information regarding how to access the bank of agriculture loans 2019.
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