HOW TO ACCESS LOANS FOR YOUR PLANTAIN FARM
The Federal Government of Nigeria has provisioned N200 Billion as loans to genuine farmers. The loans will be disbursed through the Bank of Agriculture (BOA), formerly known as the Nigerian Agricultural Credit and Rural Development Bank Limited (NACRDB).
The steps to obtain the loan are as follows:
1) Locate the office of the Bank of Agriculture that covers the area or local government area where your farm is situated and open an account with the bank with a minimum deposit of N3000.00
2) For the ‘Know Your Customer’ (KYC) requirements, you must present your NEPA Bill which confirms your place of residence + any of the approved means of identification such as International Passport, Drivers License, National Identity Card or Voters Registration Card. If you do not have the NEPA bill, forget the loan and do not waste your time going near the bank.
3) Other requirements are:
Complete and signed account form
Complete and signed mandate card
Present 4 passport photographs of yourself
4) You must run and operate the account for at least 3 -6months before applying for the loan. Do not think that you can just open the account, abandon it and show up after 6 months for the loan. The loan is not the usual national cake and the bank, newly repositioned, is not fooled. If you play that old game, the bank will doubt your integrity and commitment to repay the loan if granted and that means you may not get it.
Running and operating the loan means that you make it an active account. This means making sure that you save money and withdraw from the account on a regular basis. The bank wants to see that there are transactions going on in the account. Therefore, you should make regular deposits and withdrawals on the account during the 6 month period to create an active relationship that makes the bank have confidence in you.
5) You must have an existing farm, at a fixed location and the farm must have its record of operations and activities on a daily basis neatly kept. The era of armchair farmers/political farmers/farms of no fixed address/classroom farmers are over. The bank will visit your farm for inspection when you apply for the loan.
6) The bank will check what you have on ground; see how far you have gone; what the loan is required for, and ensure that the loan is appropriate for what it is required. The bank wants to know whether you have an adequate knowledge of your area of farming business. You must be able to demonstrate the practical hands-on experience in your area of farming. The bank wants to know whether you have a project you are working on and the fund requirements. And within a month of the inspection, the loan will be approved if the bank is satisfied.
What are you waiting for?
Get the land ready and start setting up the farm with what you have presently.
Then, go open an account with the Bank of Agriculture and operate it as required for at least 6 months.
Make an estimate of the farm’s fund requirements and get it ready before applying for the loan.
If you need information about the fund requirements for a plantain farm, the plantain farming reports on this blog, recently reviewed and updated has the full details.