19 Nov Banks to offer youths N2b agric loan at 5% interest
The Central Bank of Nigeria (CBN) has authorised commercial banks to give up to N2 billion maximum loan to youths interested in going into agriculture.
The facility is provided under the Accelerated Agriculture Development Scheme (AADS) at five per cent interest rate per annum.
It was created by the apex bank in collaboration with state governments to engage 370,000 youth in agricultural production.
According to the loan guideline released on Tuesday the maximum loan accessible under the scheme shall be N2 billion per obligor.
The CBN will bear 50 per cent of the credit risk in the event of default by the participant while repayment of the facility will be made on installment basis through the participating banks and spread over the Economics of Production (EOP) of the cultivated commodities.
Participating banks are to conduct due diligence on prospective obligors, access funds from the CBN for on-lending and ensure that payments are made directly to mechanization service providers for the land clearing.
They are to remit repayments received to the CBN on quarterly or annual basis depending on the commodity financed
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