Hot to apply for CBN Creative Industry Loan • cbn creative sector loan
Industry is an essential part of every culture for growth. Developing countries must, therefore, have functional industries. Industry creates jobs, makes people financially stable, and also encourages a country’s economic growth.
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For this reason, credit was introduced by the Central Bank of Nigeria (CBN) to support creative industries in Nigeria. We’ll show you how to apply for a CBN creative industry loan in this post.
We have art and craft and other innovative works in the industry! Due to the lack of funds to help the sector, this creative area of industry is lagging.
It is accurately observed that for this creatively oriented category of people, funds such as loans are not readily available. It is not really encouraging to finance your business as a creative person because financial institutions rarely give them loans, but prefer to give loans to develop organisations or to earn steady income for individuals.
However, as we are here to bring you the best way to receive financial assistance from the central bank of Nigeria, it is never a point of hope lost (CBN).
What you should know about the creative loan
Financial bodies wish to assist the creative industry by providing the individuals concerned with a bearable interest loan. This possibility, however, has its own policy terms and conditions through which it operates.
An initiative called the Creative Industry Financing Initiative (CIFI) was launched for financial bodies to finance this purpose.
The aim of the initiative was to disburse a loan to creative entrepreneurs to help them fulfil their creative and industrial dreams.
Who is Eligibility for the Loan?
It is good to let you know that the loan is not intended for everyone; it is intended for a specific set of individuals. The initiative designed the scheme to help the creative industry in four creative areas!
The areas/department the loan is intended for are;
- Software Engineering
- Information Technology
- Fashion designs
The specifics above and their related fields, such as software engineering, the production of movies and music. Everyone can apply to this specification. The specifics above and their related fields, such as software engineering, the production of movies and music. Everyone can apply to this specification.
What is the Loan Amount?
Up to N500 million is provided by the Creative Industry Financing Initiative to individuals who need help to realise their creative dreams. The amount is huge because the creative field is intensive in terms of capital.
What is the Minimum Requirements to access the loan?
- Anybody applying for this loan is required to be a member of the creative industry. Therefore, the loan can not be accessed by anybody who is not a member.
- There are, however, different industry categories that qualify for the loan. These are;
Categories of fashion and information technology may apply for a loan that can accommodate their rent and other establishment services.
- Software Engineering is also a class that can ask for a loan of up to N3 million.
The music category has the opportunity to apply for loans that can cover their training, equipment rental and service expenses.
- In the creative industry, movie production is a category that can ask for up to N30 million.
Up to N500 million can be requested in the film distribution category.
What are the steps on How to apply for CBN creative industry loan
This loan cannot be accessed without a suitable application method being followed. See how you should apply below;
Get a business plan: for the company you are venturing into, you must write a business plan and it must contain all the necessary information about the company’s purpose and the amount it will cost to take off.
The operation of the company must be within the creative industry.
After the business plan has been made available and you agree to the terms and conditions of the loan, please proceed to apply to any of the Nigerian financial institutions (Bank).
In order to see if you meet the eligibility criteria for the loan, the bank will collect your proposal and vet it. Your request will be granted if they see that you are eligible.
What is the CBN loan interest rate
There is interest on the loan, and the interest rate is not over 9 percent per year.
What is the CIFI Plans For Loan Repayment
All of the categories involved in this loan have their own special repayment process. Below are the repayment plans.
The categories of fashion, information technology and music have a maximum of 10 years to repay their loans.
The categories of film production and distribution also have a maximum of 10 years to repay their loans.
There is a maximum of three years for the software engineering category to repay their loan.
In conclusion, applying for a loan from the Creative Industry Financing Initiative is the best option for anyone in the creative industry to set up a good company in Nigeria. This loan will serve as a relief to fulfil creative dreams, given the financial challenges many individuals face.
CBN Creative Industry Loan • cbn creative sector loan