Join our 1,296,793 Subscribers

Get Hottest Naija News straight to your inbox!

165,554FansLike
68,466FollowersFollow
984,000FollowersFollow

BUZZING

Home loan Federal Government Agricultural Loan

Federal Government Agricultural Loan

- Advertisement -

The Federal Government Agricultural Loan is a loan programme launched by the Federal Government of Nigeria for farmers.

Agriculture is a sector of the Nigerian economy that provides food and jobs for the growing Nigerian population.

If you’re intending to start a farming business in Nigeria, you need to know that such business venture requires massive investment at the starting point.

Getting a good loan at affordable interest rates is not easy to find. The Bank of Agriculture was specially designed for farmers who are searching for agricultural loans.

Federal Government Agricultural Loan

Requirements

Before you can obtain the federal government agriculture loan, there is a need to check if you are eligible to receive the loan. The loan requirements are;

FOR INDIVIDUALS

These are the requirement for any individual who is considering opening an account with BOA:

  • Completed & signed account Opening Form.
  • Completed Mandate/Signed Card.
  • 3 recent passport photographs.
  • A recent photocopy of your utility bill (Water, PHCN, Waste,etc.).
  • Signed Letter to the Bank.
  • Signed Letter Of Set-Off.
  • A photocopy of any means of identification (National I.D Card, International Passports or Driver License).
  • An initial deposit of a minimum of N3, 000.00.

FOR CORPORATE BODIES/GROUPS/CLUBS/COMPANIES

These are the requirement for cooperative societies, Companies, clubs and groups who wants to open an account with BOA:

  • Completed & signed account Opening Form.
  • Completed Mandate/Signed Card.
  • 3 recent passport photographs each from the executives.
  • A recent photocopy of your utility bill (Water, PHCN, Waste,etc.)
  • Resolution to open an Account with the Bank.
  • An original copy of Rules or Constitution.
  • Original copy of Memo and Articles of Association.
  • Certificate of Registration/Company Incorporation (Original copy to be sighted).
  • An initial deposit of a minimum of N10, 000.00

Loan Conditions

The Federal Government provides seven (7) types of loan for farmers. The application process of each loan differs from the other. The seven types of loans are:

  • Non-agricultural microloans.
  • SME loans.
  • Cooperative & farmers group loans.
  • On- lending loans.
  • Agribusiness loans.
  • Collaboration –funded & guaranteed collaborations.

AGRICULTURE MICRO LOANS

  • The microloans scheme provides credit facilities for financing agricultural and Non-agricultural activities and initiatives such as Agro-Processing, Agric Produce Marketing, Fisheries, Horticulture, Traders, Artisans, Livestock, Tree Crop Production, Arable/field crops farmers, etc
  • Provision of 2 acceptable guarantors & 20% lien deposit.
  • It can be granted to individuals and also to members of co-operative societies/groups.
  • Loans must not exceed N250,000.00 for a period which must not be more than two (2) years.

GROW AND EARN MORE-(GEM)

This loan is targeted at women across Nigeria.

  • Applicants must open and maintain an account relationship with any BOA Office close to their project location in a minimum period of 12 weeks before the purchase and processing of loan application.
  • The maximum loan limit is N1 million per beneficiary at 14% per year subject to variation.
  • Loan and Grace periods depend on the project type.
  • Under this scheme, loans can be granted to individuals and members of groups.
  • It is a non-collateralized loan.
  • It requires two (2) acceptable guarantors.
  • A 10% lien deposit in the savings account.
  • It covers all activities in the Agriculture value chain.

SME LOAN APPLICATION FOR INDIVIDUALS:

  • It is only made for individuals.
  • Applicants can get loan credit facility of up to a maximum of N5,000,000.00 (five million) mainly for Agricultural Projects.
  • It requires collateral.

COLLABORATION AN SPECIAL CREDIT:

  • It engages in collaborative ventures with the Government, Non-Governmental Organizations, international agencies and local agencies.
  • The loan conditions are usually written in specified in a memorandum of understanding (MOU).

How to apply

These are the steps to get the Federal Government Agriculture loan.

  • Ensure that you have all the required documents needed to obtain the loan.
  • Go to any BOA branch near you.
  • Submit your documents.

Interest Rate

The interest rate varies according to the market rate. Currently, these are the BOA interest rates;

LOAN TYPE INTEREST RATE
SME Agricultural production 14%
SME Agro-processing 14%
SME Agriculture Marketing 20%
Micro Credit Loans Agric 12%
Microcredit loan (Non-Agric) 20%
YARN & GEM products 14%

 


Other Popular Banks That Gives Loans In Nigeria:


 

Repayment

The repayment duration varies on the structure of the loan. On normal circumstances, each loan has a duration of two (2) years. Loanees are to repay the loan at any BOA office.

Pros & Cons

Pros Cons
  • It supports agriculture.
  • Flexible repayment conditions.
  • Low-interest rate.
 

  • Requires collateral.
  • For farmers only.

Mobile App

Currently, they do not have a mobile app for users.

Customer Care

You can always reach the customer team of BoaNigeria through their number (+234 7040202222) or their email address at info@boanig.com.

Official Website https://www.boanig.com/
Contact Number +234 7040202222

Branches & Head Office

No 1 Yakubu Gowon Way, Sabon Gari, Kaduna State.

Here are some other Banks that offer loans in Nigeria: Payconnect Loan,Federal Government Agricultural Loan,Ab Microfinance Bank Loan

JUST IN

BIAFRA: ‘Muhammadu Buhari Must Release Sowore’ – Nnamdi Kanu Urges UN

The leader of the Indigenous People of Biafra (IPOB), Nnamdi Kanu, has told the United Nations to mediate on President Muhammadu Buhari's refusal to...

Naira Marley’s Fraud Trial Set To Start Next Month

Controversial Nigerian music star, Azeez Fashola aka Naira Marley will be back in court on October 22nd for the commencement of his fraud trial. 36NAIJA...

Former Chelsea Player, Didier Drogba Named As Ballon D’or Ambassador

On Thursday, Didier Drogba was chosen as the France Football’s Ballon d’Or ambassador according to 36Naija Sports. The Cote D'Ivoire star will co-host the award...

Ycee Attacks Tinny Entertainment For Not Paying Him His Royalties

Nigerian rapper, Ycee has taken to his Instagram handle to slam his former record label, Tinny Entertainment for not paying him after the music...

Victor Lindelof Extends Manchester United Stay

Manchester United defender, Victor Lindelof has signed a new 5-year contract at the club. The 25-year-old Swedish international has committed his long-term future to Old...

Biafra: Nnamdi Kanu Speaks After Meeting With UN Officials (Photo)

The leader of the proscribed Indigenous People Of Biafra, IPOB, Mazi Nnamdi Kanu has finally reacted to the news of meeting with the United...

3 Islamic Clerics Dupe and Gang-Rape Female Victim In Ogun State

3 self-acclaimed Islamic clerics who specialize in scamming unsuspecting members of the public have been apprehended by the Ogun state police command. The suspects, who...

Kenyan Preacher Conducts Deliverance By Giving Members Hot Slaps (Video)

The video of a Kenyan pastor, James Ng’ang’a is trending on the internet as he conducts a deliverance service for his members by slapping...