This post will help you better understand the application requirement and loan procedure for bank of agriculture, Nigeria and how to get a business plan too. Bank of Agriculture gives loan facilities to small and large scale farmers. BOA is a government-sponsored organization focused largely on Agriculture.
Executive Summary
Established in 2002, the Bank of Agriculture has its long roots in Nigerian Agricultural Bank that was founded in 1972. The bank’s goal was to provide support to the agricultural aspect of the economy. In recent, the bank still holds its place in lending to small and large scale farmers. It is now called Government Agricultural and Rural Development Financial Institution. It has a trustworthy and secure financial structure.
Some responsibilities of the Bank of Agriculture include:
Provision of loans – To support all aspect of Agriculture
Provision of micro-credits – To help poor villages and village farmers
Development of Agricultural Information System
Provision of technical support and services for rural areas
Creation of job opportunities – This would reduce the rate of migration to cities
Provision of bank services to rural areas
BANK OF AGRICULTURE BRANCHES IN NIGERIA
Bank of Agriculture stands out because:
6 zonal offices and 136 outlets spread across the 36 states of Nigeria
Partnerships with international organizations such as ADB, World Bank etc
It’s on the list of leading Agricultural Finance Institution in Africa
It provides its employees with its operational knowledge of agricultural and finance
strategies
Loan and Service Requirement for BOA Nigeria:
Bank of Agriculture has various loan facilities. Some of them include:
A. Agricultural microloans
B. Non-Agricultural microloans
C. SME loans
D. Loans for cooperative and farmers group
E. On-lending loans
F. Agra-business loans
A. Agricultural Micro Loan
This loan can be given for Agricultural and non-Agricultural purposes. Artisans, farmers, butchers
etc can access this loan.
The maximum amount that can be gotten is N250, 000 for 2 years. This is dependent on the
project type
Individual and members of a cooperative group or society can access this loan type
It requires two guarantors and a 20% deposit of the loan to be collected
B. Grow and Earn More (GEM) Loan
Women are the target market for this loan. It was set up to provide Nigerian women with financial
freedom.
Women can access up to N1,000,000 from this loan type with a 14% interest rate per
annum
Applicants are expected to have at least a 12 weeks active account in the nearby BOA office
The repayment period is determined by project type
Individuals or group of people are qualified for this loan
The loan requires no collateral, only two guarantors
Applicants are required to have 10% of the loan in a savings account
The loan is focused on Agriculture and its byproducts
C. SME Loans
Individuals can access up to N5, 000, 000 solely for Agricultural projects
Collateral is needed to access this loan
D. Collaboration and Special Credit Loan
Bank of Agriculture works with different organizations – NGOs, Agencies etc to amass resources.
This loan is a partnership between Government Agencies, Individual and Bank of Agriculture to
provide funds to individuals or group of individuals
Loan Requirement and Interest Rate
Filled and signed account opening form
Signed card and completed mandate
Three passport photographs
A signed letter of offset/deposit
Utility Bill (PHCN, Land Use etc) – A copy
Signed letter to the bank
Identification (National ID card, Voters’ card etc)
An initial deposit of a minimum of N3, 000
The rate is greatly dependent on the market rate. Hence, it varies:
SME Agriculture Production – 14%/year
SME Agro-processing – 14%/year
SME Agriculture Marketing – 20%/year
Micro Credit Loans Agriculture – 12%/year
Micro Credit Loans Non- Agriculture – 20%/year
YARN and GEM – 14%/year
Loan Application Process for Bank of Agriculture
The process is seamless. The following steps are all you need to do to access a loan facility:
Visit the nearest Bank of Agriculture to you
Ask to see the manager
Request for a loan form
Discuss the requirements of the kind of loan you want to get with the manager
Correctly fill the form
Commence processing
CONCLUSION
Agriculture is the central aspect of any economy. This is why providing funds for it is essential and
the government is making this available to farmers.
How To Download A Complete Agriculture Business Plan In Nigeria with Financial analysis
Above is a part of the business plan outline for agriculture businesses in Nigerian. If you want the complete business plan, follow the procedures to download the complete plan.
Pay the sum of N5000 (Five thousand naira only) to the account detail below:
Bank: GTBank
Name: Oyewole Abidemi (I am putting my name and not our company account so you know we are real people and you can trust us)
Ac/No: 0238933625
Type: Saving
Thereafter, send us your email address through text message to +234 701 754 2853. The text must contain the title of the business plan you want and also your email address. Immediately after the confirmation of your payment, we will send the business plan in Nigeria to your email address where you can easily download
