HOW TO SECURE A BANK OF AGRICULTURE LOAN
The Bank of Agriculture (BoA) Limited is Nigeria premier financial institution for Agriculture and Rural Development. The bank which is 100% owned by the Federal Government of Nigeria is jointly owned by the CBN and Federal Ministry of Finance with each owning 40% and 60% respectively.
The operation of the bank is being supervised by the Federal Ministry of Agricultural and Rural Development. BoA plays an important role in catalyzing the SME lending market in Nigeria.
BOA LENDING SCHEME
The BoA provides the following Loan facilities:
- 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 a maximum of a ₦5,000,000.00 mainly for Agricultural Projects.
- It is a collateralized loan
COLLABORATION & SPECIAL CREDIT:
- BOA 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.
- We 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.
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
- Our 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.
- [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.