How To Access CBN N23 Billion Creative Industry Loan
The Central Bank of Nigeria (CBN) has unveiled the steps and modalities to access its N22.9 billion seed fund under the Creative Industry Financing Initiative (CIFI).
The CBN developed the initiative in collaboration with the bankers committee, as part of efforts to boost job creation in Nigeria, particularly among the youth.
The CIFI intends to enable businesses in various sectors of the creative industry access loans up to N22.9bn.
The CBN in a circular published on its website on Thursday, and addressed to all deposit money banks (DMBs) in Nigeria, highlighted the key features and modalities under each business category to officially kick-start the implementation of the scheme
Below is a breakdown of requirements to access the loan facility per business unit.
Movie Production and Distribution
N50 Million can be accessed by each interested individuals for movie production with a 9% interest rate per annum over a period of 10 years. For movie distribution, the single obligor is capped at N500 million
The total amounts accessible for movie production and movie distribution are N3 billion and N4 billion, respectively.
The major requirements include a minimum equity contribution of 30%, legal mortgage, all asset debenture, credible guarantor and personal guarantee.
Other conditions are minimum of three years relevant experience, no bad credit history with any bank and preference for areas with low cinema penetration.
The repayment plan is on a quarterly basis and on the other hand, the moratorium is 24 months from the date of the loan disbursement.
A total of N4 billion loan is accessible for businesses in the fashion sector with a 9% interest rate per annum. This loan spans for a period of 10years with a quarterly repayment plan.
The moratorium is 36 months from date of the loan disbursement with security arrangement to include a minimum equity contribution of 20%, mortgage debenture, local mortgage and lien on stock of trade and items of equipment.
Other conditions include at least three referrals from recognised sponsors or bodies or associations. Minimum of three years of relevant experience and no bad credit history with any bank.
Student Software Loan
For a student software development loan, each obligor can access up to N3 million. The total amount appropriated for the student software loan is N1 billion.
To be eligible for this, some of the requirements include a University degree certificate, NYSC certificate, Credible Guarantor and Personal Guarantee.
Other conditions include gaining admission into a training organization that has job placement contract, no bad credit history with any bank and preference for areas with low IT penetration
This loan can be accessed with a 9% interest rate per annum for a tenor of three years.
According to the circular the repayment plan is on a monthly basis, while the moratorium is 9 months from date of the loan disbursement.
The document below shows a breakdown of loans available for different sections covered in the CBN Creative Industry Financing Initiative.