We’ve made a list of the Bank of Agriculture loan requirements for a successful application. The Bank of Agriculture in Nigeria (BOA) is a goverment-backed bank specialized in providing funding for agricultural activities in the nation.
The bank gives out loans to help people start and grow their businesses, big or small. This includes farms and businesses that work with farm products.
Anyone can get a loan from this bank, from a single person to big companies, as long as they’re doing something related to farming.
So, if you are a young person who wants to take a loan to start an agri-business, you might need to consider applying for a loan from the BOA in Nigeria.
Keep reading for detailed information on applying for loans from BOA, Nigeria.
Key Takeaways
- To qualify for a Bank of Agriculture (BOA) loan, your business must be involved in agricultural activities.
- The key requirements, such as business registration, eligibility for the loan type, and financial readiness, significantly increase your chances of approval.
Table of Contents
Categories of Loans and Credits given by The Bank of Agriculture, Nigeria
Here are the credit facilities issued by the Bank of Agriculture, Nigeria.
Microcredit products
Micro credits are low-amount loans given to impoverished borrowers who typically lack collateral, steady employment, and verifiable credit history. It is designed to support entrepreneurship and alleviate poverty. Some include micro-credit for agri-businesses, the Co-operative Family Feeding Programme (CFFP), Operation Feed Yourself (OFY), and micro-credit for non-agric businesses.
Commercial agricultural products
This includes the Agriculture Land Financing (ALF) loan, Input Procurement Credit Facility, Equipment Leasing Products Programme (ELPP), post-harvest process logistics and storage finance, and Export Finance Product Programme (EFPP).
Products for women & youth
This includes loans for Youth Agricultural Revolution in Nigeria (YARN), Women in Agriculture and Enterprise (WAE), and BOA Rural Business Initiative cooperative loans (BOARBI).
Other Products
Other products that do not fall into the previous categories are the Payday Loan and Nano Loans tagged ‘Lift the poor’.
Bank Of Agriculture Loan Requirements You Must Meet to Acquire a Loan Successfully
We have seen the variety of loans and credits provided by the BOA in Nigeria, and to acquire these credits, several requirements must be met.
Requirements for individual-owned small, medium, and large agricultural enterprises:
- A completed loan application form.
- Feasibility study report/business plan for the proposed project.
- Bank Verification Number (BVN).
- Signing of global standing instruction (GSI).
- Equity contribution
Note: The GSI is a mandate a borrower makes through a signed document. It authorizes the creditor bank (the bank that gave the loan) to recover their debt from any or all other accounts owned by the borrower with other financial institutions in the case of default in loan repayment.
Requirements for corporate-owned businesses:
- A completed loan application form.
- Feasibility study reports/business plan for the proposed project.
- Board Resolution authorizing the company to borrow from BOA.
- Certificate of incorporation.
- A vetted financial statement for the last three years.
- Bank Verification Number (BVN).
- Global standing instruction (GSI).
- Equity contribution.
How to Apply for a Loan From BOA, Nigeria
There are different federal government grants and federal government organizations that give loans to businesses. BOI is one of it.qualify for a Bank of Agriculture (BOA) loan, your business must be involved in agricultural activities. However, most BOA loans are for businesses, not individuals. So, your business needs to be officially registered before applying. Unlike other financial institutions, BOA lends directly to businesses and you may need a BOA account to apply for a loan.
If you are certain you qualify for a loan from this bank then read on to see how to apply.
Steps to apply for a loan from Bank of Agriculture ( BOA)
- First, visit your closest Bank of Agriculture location and express your interest in applying for a loan. There are several branches across the nation.
- Determine the credit facility you would like to apply for according to your business type and needs.
- The bank will evaluate your loan purpose and your business’s ability to repay. If your application looks good, you’ll be pre-approved for the loan.
- To get final approval, you must meet specific conditions and requirements outlined in the pre-approval letter.
Conclusion
Securing a Bank of Agriculture loan requires careful preparation and adherence to specific requirements. By understanding the key requirements, such as business registration, eligibility for the loan type, and financial readiness, you can significantly increase your chances of approval.
Also, remember that thorough documentation and a well-structured business plan are essential. If you meet the necessary conditions, you’re well on your way to accessing the financial support needed to grow your agro-business.
FAQs
What are the requirements for an agric loan?
Typically, you need an application form, BVN, signed GSI, a business plan and equity contribution to apply for an agric loan.
What is the interest rate of Bank of Agriculture loan?
Interest rate is 14% for agricultural production and agro-processing while commodity marketing is 20%.
References
Blessed is a dedicated grants and business funding researcher with a keen eye for uncovering opportunities. With a background in digital marketing and social media management, she brings a unique perspective to her work. Blessed is passionate about helping individuals and businesses secure the funding they need to achieve their goals. Her expertise and dedication make her a valuable resource for anyone seeking financial support.
