The NMFB Covid19 loan, also known as NIRSAL COVID-19 Loan is a Federal Government loan program aimed at providing businesses, families, and households that were affected by the COVID-19 pandemic with financial assistance.
This article dives deeper into the NMFB Covid19 loan application guide, eligibility, documents needed, and how to apply.
Also if you are already a beneficiary of this program, this article will teach you how to check your NMFB Covid19 loan and repay according to the repayment schedule.
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NMFB Covid19 Loan Support Application Guideline for Households
- This creates an avenue for loans to be processed for households based on credible evidence of the COVID-19’s harmful impact on livelihood, which is the fundamental issue for financing.
- The fund is designed for households that have proven proof of a detrimental impact on their livelihoods as a result of COVID 19.
What does the NMFB Covid19 Loan Cover?
The loan covers essential household expenses for up to a year.
This contains items such as:
- Rent payments
- Food costs
- Utility bills (electricity, water, gas)
- Medical bills
- School fees
To be eligible for the loan, you must be a COVID-19-impacted household or business owner. This could include losing your job, reducing your work hours, incurring higher medical bills, and so on.
The loan amount is determined by your unique scenario, it can be as much as 5 million Naira.
NMFB Covid19 Loan Eligibility
To qualify for the NMFB Covid19 Loan, you must meet a few fundamental requirements. This fundamental requirements are:
- You must be a salaried employee or business owner with a consistent income.
- Your source of income must be traceable. This means that you must provide your bank statement, utility bills, ID, and other relevant financial documents.
- You must be an existing NMFB customer.
- You must have a clean loan record.
- Finally, the property you intend to improve or purchase must be in an area suitable for NMFB financing. The NMFB’s goal is to help underprivileged populations, hence particular areas may be prioritised. Check with your local NMFB branch for information on qualified locations in your area.
Documentation Required
- Loan application letter
- Duly completed application form
- Duly executed Guarantor form
- A valid means of ID (national ID, driver’s license, voter’s card, or international passport)
- Current utility bill
- 2 recent passport-size photographs
- BVN
Terms & Conditions
- Flexible and movable collateral options must be admitted and registered with the Collateral Registry Bureau.
- The customer must execute a Forfeiture Undertaking and Power of Attorney agreement, which grants NMFB the ability to take over pledged assets in the event of loan default.
- Insurance coverage for the asset funded or used as flexible collateral, with the NMFB designated as the first loss payee.
- Loan amount must correspond to the loan repayment plan and the loan purpose.
Domiciliation of proceeds with NIRSAL Microfinance Bank
- Facility Type: Term Loan
- Single Obligor Limit: N3m
- Loan Tenor: Maximum of 36 months
- Moratorium: At least 12 months
Collateral Requirements
1. Mini Micro: N1 – N500,000.00
Applicant must provide the following;
- 1 Accepted Guarantor with a valid ID card (National ID or NIN Slips, International Passport, Driver’s License, Permanent Voter’s Card) and BVN
- Utility Bill for both Applicant and Guarantor
2. Micro: N500,000.00 – N1.5m
- The applicant must supply a movable item worth at least 70% of the loan amount, with a serial number that may be registered on the collateral registry.
- 1 Acceptable Guarantor with a valid ID card, such as National ID or NIN Slips, International Passport, Driver’s license, Permanent Voter’s card, and BVN.
- Utility Bill for both Applicant and Guarantor
3. Micro Plus: N1.5M – 3M
Applicants must supply the following:
- Any describable movable asset having a serial number that can be registered on the collateral registry for at least 70% of the loan amount.
NMFB Covid-19 Loan Support Application Guideline for SMEs
- Targeted Cash Flow-Based Lending: This provides an outlet for loans to be processed for consumers based on their established sufficient cash flow capacity, which is the primary concern for lending.
- Target Market: The fund is aimed at creditworthy enterprises with an excellent track record in their industry, who meet the appropriate cash-flow standards, and whose businesses have been proven harmed by the COVID-19 pandemic.
NMFB Covid-19 SME Loan Eligibility
The Bank will examine the customer’s capacity based on their business history, namely total account statement turnover (with NMFB and other banks), this is not the only tool used to determine customer eligibility.
(Note: If an examination of the customer’s account statement reveals fundamental flaws, the bank reserves the right to make choices deemed appropriate).
Customers who have agreed to let the NMFB Credit Unit review their financial records.
The customer must demonstrate that the request is supported by the level of sales profits reflected in the account statement turnover. The customer’s books (ledger) should also justify the figures.
Evidence of opportunity cost or unfavourable impact resulting from the COVID-19 epidemic
Documentation Required
- Loan application letter
- Duly completed application form
- Guarantor form
- A valid means of ID (national ID, driver’s license, voter’s card, or international passport)
- Current utility bill (Applicant & Guarantor)
- 2 recent passport-size photographs
- BVN
Terms and Conditions
- Flexible and movable collateral options must be admitted and registered with the Collateral Registry Bureau.
- The customer must execute a Forfeiture Undertaking and Power of Attorney agreement, which grants NMFB the ability to take over pledged assets in the event of loan default.
- Insurance coverage for the asset funded or used as flexible collateral, with the NMFB designated as the first loss payee.
- Customers must have verifiable suppliers with whom they have had a commercial relationship for at least 6 months.
- Loan amount must meet loan payback, with 5% per year until February 28, 2021, and 9% thereafter for the loan purpose.
How to Apply
The application process for the NMFB Household Loan is uncomplicated. Here are the steps.
- Collect the required paperwork. This contains documents such as your government ID, proof of address, bank statements, and so on.
- Visit the nearest NMFB branch: Due to COVID-19 safety precautions, it is recommended that you call ahead to schedule an appointment.
- Complete the loan application form. Provide information about how your household or business has been affected, your loan amount request, income information, and the necessary proof.
- Submit your application. An NMFB loan officer will analyse your application and supporting documentation to determine your eligibility.
- Loan approval and payout. If authorised, the loan proceeds will be paid into your bank account within 5 to 14 business days. The repayment arrangements are variable for up to 12 months.
The NMFB Household Loan offers financial assistance when people need it the most. If COVID-19 has created financial difficulty for your family, applying for this loan may assist in relieving the strain during this trying time.
How To Check NMFB Repayment Schedule
To begin, navigate to the NMFB website.
- Enter the required information. To view your loan payback plan, you will need to submit either your BVN (Bank Verification Number) or Account Number. This information guarantees that you can securely access your loan information.
- Review your loan statements: After you’ve completed the essential information, you may review your loan statements and schedule. This can help you comprehend your loan payback commitments, including due dates and amounts.
- Print Your Statements: It’s a good idea to maintain track of your loan statements. You may quickly print out your loan statements and schedules from NMFB. This document can serve as a reference point and verification of loan repayment.
Conclusion
In conclusion, the NMFB Covid-19 loan is an opportunity for families, households, and businesses to have funds for a better upgrade. To have your application guaranteed, ensure you submit accurate information and check all documents before submitting the application.
If you have any difficulties during the application, contact NMFB customer support for help.
Good luck!
Adepoju Olamilekan is a blogger and student of economics at Adekunle Ajasin who has written for many educational blog across the country. His passion and love for blog and creating as found him always writing to provide solutions to all Nigeria Students