Nirsal Credit Risk Guarantee Agro Business Loan | Apply Now for Nirsal Agriculture Loan for Nigerians
Applications are hereby invited from Nigerian farms who are seeking for funds to increase their agro-business produce. Interested persons should submit their application form now for the Nirsal Credit Risk Guarantee Agro Business Loan 2023 before the application deadline.
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About Nirsal Credit Risk Guarantee(CRG)Loan
The NIRSAL Credit Risk Guarantee (CRG) is the core service provided by NIRSAL Plc. The CRG is an instrument issued to protect financiers and investors from possible losses in a finance/credit transaction through a risk-sharing arrangement under which NIRSAL indemnifies the lender or investor of the Principal and accrued Interest to the limit of a pre-agreed CRG rate. The offer of the NIRSAL CRG serves as a comfort to financiers and investors, encouraging them to lend to the agribusiness.
The NIRSAL CRG secures agribusiness loans against losses over the life of the underlying credit contract between a financier and actors across all segments of the agricultural value chain. It covers credit in the form of term loans, and/or debt instruments such as short, medium, and long-term notes, excluding overdrafts.
The NIRSAL CRG also covers the credit risk of default on loan principal and the accrued interest. It is purchased at 1% (upfront payment) of the loan value and subsequent outstanding balances of the loan annually.
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NIRSAL CRG Loan Categoeris, Amount and Coverage Percentage
- Smallholder Farmers and Farmer Groups
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- 5 million Naira
- 75% CRG Coverage of the loan
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- Cooperatives
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- 50 million naira
- 75% CRG Coverage of the loan
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- Large Scale Primary Producers
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- 2 billion Naira
- 50% CRG Coverage of the loan
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- Mechanization
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- 50 million Naira
- 75% CRG Coverage of the loan
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- Large scale Mechanization
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- 2 billion Naira
- 50% CRG Coverage of the loan
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- Processors
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- 2 billion Naira
- 50% CRG Coverage of the loan
- Integrated Farms
- 2 billion Naira
- 30% CRG Coverage of the loan
- Logistics Providers
- 2 billion Naira
- CRG Covers 30% of the loan
- Agro dealers, Input and Equipment Suppliers
- 2 billion
- CRG Covers 30% of the loan
Read also: Top Ways to Get Loan in Nigeria without Collateral
Loan Application process
There are six steps every farmer must complete before getting the loan and they include;
- Step 1- Farmer/Agribusiness applies for a loan from a Commercial Bank and requests for NIRSAL CRG cover.
- STEP 2 – Bank approves the loan and sends CRG request and relevant documents to NIRSAL on behalf of the farmer/agribusiness.
- STEP 3 – NIRSAL reviews Bank’s request and checks documents for completeness, accuracy and validity.
- STEP 4 – If documents are in order, NIRSAL and Bank conduct farm/site visitation and prepare a report which is subjected to NIRSAL’s internal approval process.
- STEP 5 – Upon approval by NIRSAL and payment of CRG fee, NIRSAL issues CRG in favour of the Bank on behalf of the farmer/agribusiness.
- STEP 6 – Bank disburses the loan to farmer/agribusiness and NIRSAL commences project monitoring through its nationwide Project Monitoring, Reporting & Remediation Offices
To scale and expand your agribusiness often requires access to credit. NIRSAL’s Loan Facilitation services help you to structure your agribusiness finance and investment needs, understand your financial requirements and match your agribusiness (supported by NIRSAL’s Credit Risk Guarantee), with the appropriate finance and investment options you require.
Read also: Top 10 Loan Apps and their USSD Code
How to Apply
To start your application process, visit any commercial bank to request the form and follow the six steps stated earlier. You can also visit the Nirsal Credit Risk Guarantee Agro Business Loan portal at https://nirsal.com to fill out the agribusiness loan facilitation form.
Application Deadline
No deadline is given
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