Bank of Agriculture loan application requirements and procedure
Bank of Agriculture is one of the most popular banking institutions in Nigeria. The bank, whose mission is to stimulate agriculture, improve lives and grow communities, provides lucrative loan products to its customers. Here are all the details about Bank of Agriculture loan products.
Source: Facebook
Bank of Agriculture, which was incorporated as Nigerian Agricultural Bank (NAB) in 1972 and became operational in 1973, is one of the institutions that offer agricultural loans and grants in Nigeria.
The bank takes pride in being Nigeria’s largest development finance institution and leading agricultural finance institution. With over 40 years of experience in rural and agricultural finance, the bank has some of the most lucrative agricultural loans in Nigeria.
Here is all the useful information you need to know about the loans offered by the institution.
Bank of Agriculture loans
The bank provides both Agric loans and Non-Agric loans.
Agric loans
The Agric loans in Nigeria, offered by BOA, include the following.
Direct Credit Product
- Developed to finance agricultural productions and Agro-allied activities.
- Loan volume ranges from above N250,000.00 to a maximum of N50,000,000.00.
- Limit of N5,000,000.00 to individual persons.
- Above N5,000,000.00 to corporate organizations.
- Loan tenor not exceeding 5 years.
- Disbursement both cash and kind.
- For both individuals and cooperate bodies.
- Staggered disbursement.
- Backed up with a viable, profitable, and bankable business proposal.
- Agro-business must be a clause in the Memart of the company for corporate applicants.
- Security acceptable to BOA requirement
- Interest rate 14% for agricultural production and agro-processing while commodity marketing is 20%.
- A current tax clearance certificate required.
- Last 3 years audited statement of account or statement of affairs required.
- Consent to a mortgage of the landed property being pledged as security for the loan required.
Source: UGC
Large Credit Product
- Developed to finance large agricultural production and Agro-allied activities.
- Loan volume ranging from above 50 million to a maximum of 1 billion for a single obligor.
- Accessed by corporate bodies only.
- Loan tenor not exceeding 5 years
- Disbursement both cash and kind.
- Staggered disbursement.
- Backed up with a viable, profitable, and bankable business proposal.
- Agro-business must be a clause in the Memart of the company for corporate applicants.
- Security acceptable to BOA requirement.
- Interest rate 14% for agricultural production and agro-processing while marketing is 20%.
- Current tax clearance certificate required.
- Last 3 years audited statement of account or statement of affairs required.
- Consent to mortgage of the landed property being pledged as security for the loan required.
Youth Agricultural Revolution In Nigeria (YARN)
- Developed to encourage Nigerian Youths to key into agriculture and take it as an investment or business.
- The maximum loan limit under this product is N1 million per beneficiary.
- The beneficiaries must be small holders as defined under the Nigeria Incentive Risk Sharing for Agricultural Lending (NIRSAL) guidelines.
- To facilitate unhindered access by these target groups, the beneficiaries need not have collaterals but must provide acceptable guarantors.
- The loans are accessible by individuals or groups. The individuals in the group can get N1 million each subject to technical determination of scope and financial requirements of the project.
- The loans can be accessed by individuals and groups in line with NIRSAL Credit Risk Guarantee (CRG) and Interest Draw Back Program (IDP).
- Loan period, Grace or Moratorium on the products will be determined based on the project type.
- NIRSAL provides 75% credit guarantee.
- Interest Rate 12%.
Source: UGC
Grow And Earn More (GEM)
- Developed to encourage Nigerian women to key into agriculture and take it as a business.
- The maximum loan limit under these products is N1million per beneficiary subject to technical determination of the scope and the input requirements.
- The beneficiaries must be small holders with the required land for cultivation or any of the value chain products.
- To facilitate unhindered access by these target groups, the beneficiaries need not have collaterals. In lieu of this, there will be collateral substitutes such as adequate and acceptable guarantors with verifiable income, NIRSAL Credit Risk Guarantee to cover 75% of loan delinquency.
- The loans are accessible by individuals or groups. The individuals in the group can get N1 million each subject to technical determination of scope and financial requirements of the project.
- Loans Period, Grace or Moratorium on the products will be determined based on the project type and the gestation of the project.
- Interest rate is 12%.
Non Agric loans
The BOA also offers Non Agric loans, which include:
Micro Credit
- Loan size – Maximum of NGN250, 000.00
- Loan tenor – Short Term (not more than 2years)
- Interest rate – At Prevailing Rates
- Target group – Small holder farmers, petty traders, artisans, etc.
- Lien deposit – 20% of loan amount required
- Security – 2 reputable guarantors
- Must operate account with the Bank for a minimum period of 90 days
- The micro projects must be viable
- Can be accessed by Individual, cooperatives or self-help groups
BOARBI Model
- Entry level - N20,000.00 – N40,000.00
- Target Group - Rural active poor
- Loan tenor - Maximum of 10 months
- Lien deposit – 10%
- Interest rate – At Prevailing Rates
- Project types – Micro enterprise
- Approving authority – Branch Credit Committee
- Mode of collection – Weekly at Group Meetings
- Security – Cross guarantee of Group members
- Accessible only through women group
Source: UGC
Bank of Agriculture loan requirements
The main requirement for all the loans is to have an active Bank of Agriculture account. What do you need to open one?
The following are the requirements for opening an Individual Savings Account:
- Two Completed Signature Cards.
- Four recent colored passport photographs each of authorized signatory duly endorsed by the account holder.
- Completed account opening package (To be provided at the Branch Office).
- In case of joint accounts, Signature cards are to be completed by all signatories with signing instructions e.g. “Both to sign”, or “Either to sign” or “Any two or three to sign,” clearly.
- In case of minors, four passport photographs should be included in the mandate.
- Provision of Means of identification i.e Voters Card, National ID Card, International passport, Driving License
Source: Getty Images
Bank of Agriculture loan application process
The process of application is easy and fast. You just need to go to one of the branches of the bank. Ask a manager to give you a loan application form. After filling it, submit the form.
Discuss all the loan requirements with a manager to be sure that you possess all the needed points. If everything is good, you go to loan processing.
That is all you need to know about Bank of Agriculture loans. Agriculture is among the most important economic sectors of the country, that is why the government supports loan programs for farmers.
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