HOW TO ACCESS BANK OF AGRICULTURE LOANS
Bank of Agriculture (BOA) Limited is Nigeria’s premier Agricultural and Rural Development Finance Institution. 100% wholly owned by the Federal Government of Nigeria. The ownership structure is: –
- Central Bank of Nigeria (CBN) 40%
- Federal Ministry of Finance Incorporated 60%.
Bank of Agriculture Limited is being supervised by Federal Ministry of Agriculture & also regulated by CBN. Bank of Agriculture plays an important role in catalyzing the SME lending market in Nigeria. The Bank of Agriculture is well known for providing range of loans facilities that could be explored. These include:
- AGRICULTURAL MICRO LOANS
- NON-AGRICULTURAL MICRO LOANS
- SME LOANS
- COOPERATIVE & FARMERS GROUP LOANS
- ON- LENDING LOANS
- AGRI- BUSINESS LOANS
- COLLABORATION –FUNDED & GUARANTEED COLLABORATIONS
MICRO CREDIT LOANS
The micro loans scheme is a service that avails credit facilities for financing both Agriculture and Non-Agricultural initiatives and activities including traders, artisans, arable/field crops farmers, Fisheries, Horticulture, Agro-Processing, Livestock, Agric Produce Marketing, Tree Crop Production, etc
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. Provision of two (2) acceptable guarantors & 20% lien deposit.
GROW AND EARN MORE-(GEM)
The product is an initiative targeted at women of all ages & classes in recognition of the place of women in Nigeria and to address the challenges to women’s access to finance. Maximum loan limit of N1 million per beneficiary @14% per annum subject to variation. All applicants must open and maintain account relationship with BOA Office nearest to their project location for a minimum period of 12 weeks before purchase and processing of loan application. Loan and Grace periods on the products depend on the project type. Under this scheme, loans can be granted to individuals and members of groups. It is non collateralized loan but two (2) acceptable guarantors. There must be 10% lien deposit in the savings account. This is an opportunity for increasing woman access to finance to enhance the growth of Woman- Owned Business in Nigeria. All Activities along the Agriculture value chain are covered .
SME LOAN APPLICATION FOR INDIVIDUALS
Individuals can access credit facility up to maximum of a N 5,000,000.00 mainly for Agricultural Projects. It is a collateralized loan
COLABORATION & SPECIAL CREDIT
Bank of Agriculture collaboration scheme is a partnership program that enables us to pool the resources of other agencies to grow the operations of our customers and our collaborative partners’ groups of interest. They engage in collaborative ventures with international agencies, local agencies, Governments and NGOs. Collaboration Loan/Special Credit Scheme to farmers involve an arrangement between BOA and Agencies of government/Groups/Individuals for disbursement of fund to identified groups or individuals at a determined interest rate which can be varied according to the market rate. The condition for this type of collaboration is usually specified in a memorandum of understanding (MOU) in addition to the subject of the targeted group and in line with BOA lending conditions.
INTEREST RATES
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
INSURANCE COVER
The Loan facilities are insured with NAIC. Subsidized insurance premium of 1.5%, 7.5%, 2.5%, and 2.0% are being charged on Non-Agric Piggery, Livestock and Arable crop respectively.
REQUIREMENT FOR THE OPENING OF ACCOUNTS
- 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.
FOR SOCIETIES, CLUBS, OR COMPANY ETC
- 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.
