12 Steps To Accessing N50bn Agricultural Credit Guarantee Fund

One financing scheme of importance in the Nigerian economy in the recent is The Agricultural Credit Guarantee Scheme Fund (ACGSF)

This is because of its capability to continually boost income generation both for individual agriculture entrepreneurs and the larger economy is not in doubt.

In attention, it is one scheme which has the capacity to create more value chains for different categories of agriculture entrepreneurs.

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Especially for individuals who desire lucrative investment opportunities in the economy, here are 7 key facts to know about this important scheme.

1. The Agricultural Credit Guarantee Scheme (ACGS was established by Decree No. 20 of 1977, and became operational in April 1978.
2. Fully subscribed to by the Federal Government (60%) and Central Bank of Nigeria (40%), it has a share capital of N50 billion
3. The Scheme is under the management of the Agricultural Credit Guarantee Scheme Fund Board with the Central Bank of Nigeria as Managing Agent.
4. A major objective of the Agricultural Credit Guarantee Scheme is to provide guarantee in respect of loans granted by lending banks for agricultural purposes, with the aim of increasing the level of bank credit to the agricultural sector.”Loan” under the Scheme include advances, overdrafts and any other credit facility.
5. The scheme also aims to mitigate risks associated with banks’ lending to agriculture by guaranteeing 75% of the net amount in default in accordance with the provisions of the enabling Act. READ ALSO: President Bola Ahmed Tinubu’s 2024 Budget Speech –Full Text
6. All applications for loan guarantee under the Scheme shall be made on the form prescribed for the purpose
7. The ACGS application form should be completed by the beneficiary; Application forms shall be signed and stamped by the lending bank concerned and forwarded to the nearest office of the Central Bank in the State in which the bank is situated or as may be otherwise directed.
8. Agricultural enterprises guaranteed under the Fund must be mapped/tagged and the cost borne by the customer.
9. All loan applications should be subject to Credit Bureau and Credit Risk Management System (CRMS) checks by the lending bank.
10. The Development Finance Office in the State will conduct visits to the project sites and attach reports (including pictures and video clips) and submit same to the DFD Head Office. READ ALSO: Microcredit Loans: Get Quick Cash For Business, School Fees, Family Socials
11. All applications for Agricultural Credit Guarantee Scheme guarantee should be submitted to CBN by the lending bank not later than 30 days after receipt of application from beneficiary
12. All lending banks are expected to carry out all necessary credit reviews and due diligence in good faith as well as competence, with which they would treat all applications for loans received in the normal course of their banking business.