The Agricultural Credit Guarantee Scheme Fund (ACGSF) is a program in Nigeria that aims to get banks to lend more money to people involved in agriculture. It does this by guaranteeing that the bank will get its money back even if the borrower defaults on the loan (up to 75% of the outstanding balance).
Here are some of the general requirements for applying for an ACGSF loan:
- The borrower must be involved in agricultural production or processing activities. This could include crop farming, livestock production, fisheries, or poultry farming.
- The loan must be for a purpose that is approved by the ACGSF. This could include financing for land preparation, planting, fertilizer, pesticides, or other farm inputs.
- The borrower must meet the loan eligibility requirements of the participating bank. These requirements will vary from bank to bank, but they may include things like having a good credit history and providing collateral for the loan.
The application process for an ACGSF loan involves the participating bank you choose and the Central Bank of Nigeria (CBN). Here’s a breakdown of the general steps:
- Obtain Application Forms:
- Through Banks: While large-scale farmers can approach banks directly, the standard procedure involves collecting forms from participating banks. These banks will have the specific application forms required by the ACGSF program.
- Complete the Forms:
- The application package typically consists of various forms, including applications for credit facilities, guarantee, and (potentially) enhancement or extension. Fill out these forms carefully, providing accurate information about your agricultural project and loan requirements.
- Bank Assessment:
- Submit the completed forms to the chosen bank. The bank will assess your application based on their eligibility criteria, which may include credit history and collateral requirements. They’ll also likely conduct credit bureau and CRMS checks.
- Project Site Visit and Report:
- The Development Finance Office (DFO) in your state may visit your project site. They’ll prepare a report with pictures and videos attached, submitting it to their head office.
- Bank Submission to CBN:
- After completing their assessment and receiving the DFO report, the bank has 30 days to submit your application for ACGSF guarantee to the nearest CBN office in your state (or as directed by the CBN).
It’s important to note that the ACGSF is a program that is administered by banks, so you will need to apply for a loan through a participating bank. The bank will be able to give you specific information on the requirements and qualifications for applying for an ACGSF loan.