CBN Low Interest Intervention Loans 2024/2025
The Central Bank Of Nigeria as know as the apex bank has many responsibilities, one of which is popularly know as being government bank, bankers bank, maintaining external reserves, issuance of legal tender etc. However, away from these conventional duties, there are as well other responsibilities attached to the apex bank, there are other aspect of the bank’s responsibilities that are not well known and I wish to touch on a few of them. I guess lack of information is the reason why you still have potential business people who are far away from getting the necessary fund they need for their business.
The Central Bank of Nigeria has a long list of intervention funds out there, I will touch on a few things as regards the CBN low interest intervention loans, its payment method, discuss what is the required interest rate as charged, might touch on other intervention programmes by the CBN, especially the CBN agric loan intervention, other intervention not related include intervention in Forex market etc.
CBN Low Interest Intervention Loans || CBN Textile Intervention Fund
As much as I would want to touch on other aspect of CBN intervention, my focus will be on textile intervention fund powered by bank of industry. To begin with, this intervention funds scheme is backed by the CBN loan decree, based on Section 31 of CBN Act 2007, where under the Central bank Of Nigeria development function, about N50 billion naira has be budgeted to finance as well as resurrect the long dead textile industry in Nigeria.
For years, the federal government of Nigeria, has been putting in effort to have this industry restructured. The aim is to make it functional in order to create more employment. Shocking that in the 1990s, there was an estimated 137,000 jobs, but since the industry suffered economic downturn just as many other industries in the country, the estimated job number went south, from 137,000 to less than 25,000 job. Despite over $1.1 billion dollar investment by the government in the industry.
This CBN low interest intervention loans will help create a new and better structure on existing loans, and then facilitate an additional loan to textile companies. This is to help boost the textile/garment sector in the country. By promoting this development companies will regain confidence in manufacturing again.
According the bank of industry’s website, this CBN textile intervention fund will provide a new structure which will address the following; (1) Types of Facilities, (2) Takeover of loans, (3) Long term loans for acquisition of plant and machinery and (4) Working capital
Eligibility For CBN Textile Intervention Fund
It is not enough to know about any of these CBN low interest intervention loans, an important factor to consider is the check your eligibility criteria, below are some criteria you must meet in order to qualify for this loan;
- Must operate a Textile, Cotton or Garmenting manufacturing hub to be eligible.
- Manufactures who have history with the bank of industry, in essence must have been in their book or registered as a Textile, Cotton or Garment scheme as designed by the BOI.
- A manufacture that has an existing facility in deposit money banks (DMBs).
- To be qualified, the Company must not be a participant in any other CBN Interventions.
- Any manufacture that has a loans June 2009 will not be qualified, because that was the inception of bank of industry loan.
To get more on the initial documentation and loan documentation, visit https://www.boi.ng/. also on the official Bank of Industry webpage you can get the loan application and approval requirement list, loan availment and disbursement requirement list… Click to see CHECKLIST. Other features as regards this CBN low interest intervention loans, features like pricing or charge rate like interest per annum, tenor, security etc.