FG launches YOUTHCRED loan: N200,000 to N2 million for young entrepreneurs
The Federal Government on Wednesday launched the YOUTHCRED for Entrepreneurs initiative to provide affordable loans for young entrepreneurs and improve access to business financing.
According to the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, the loan scheme is designed to provide between N200,000 and N2 million to 500,000 young entrepreneurs.
The programme, unveiled in Abuja, aims to expand access to affordable credit for young business owners who often struggle to secure conventional bank loans because of collateral requirements.
Who can apply?Applicants must be between 18 and 35 years old, own or operate a business, demonstrate responsible credit behaviour and show evidence of cash flow and ability to repay the loan.
Loan amount
Eligible entrepreneurs can access loans ranging from a minimum of N200,000 to a maximum of N2 million.
How to apply
Applicants can sign up by visiting the YouthCred website, completing a short online application and undergoing a verification process.
Applications will be processed through regulated financial institutions participating in the YOUTHCRED programme.
How long is the repayment period?Beneficiaries can choose flexible repayment plans ranging from one to 12 months, depending on what best suits their financial situation.
Is collateral required? No.
YouthCred says applicants do not need collateral or guarantors to qualify for the loan. Instead, the amount approved will depend on the applicant’s repayment capacity, credit behaviour and business cash flow.
What is expected of prospective applicants?Meet the eligibility requirements.
Apply through participating financial institutions under the YOUTHCRED scheme.
Provide the required personal and business information for credit assessment. Undergo evaluation based on their cash flow, credit history and repayment capacity.
Receive loan approval and disbursement if successful.
Who can benefit?
Caterers, makeup artists, fashion designers/tailors, ride-hailing drivers, content creators, mechanics, young farmers, National Youth Service Corps members and other micro and small business owners.
How can borrowers increase their loan limit?Borrowers can access higher loan amounts by repaying previous loans on time, building a positive credit history and completing the platform’s financial training modules.
Purpose of the schemeSpeaking at the launch, Oyedele said the initiative was designed to unlock the entrepreneurial potential of young Nigerians by providing access to affordable credit.“You may want to ask why the focus on entrepreneurs? That’s because more than 90 per cent of Nigeria’s MSMEs are micro enterprises built around individuals, from the tailor to the ride-hailing driver, the fashion designer, the caterer, content creator, the mechanic and the young farmer,” Oyedele said.
He added that the programme was intended to help young Nigerians grow their businesses without the burden of traditional lending requirements.The Managing Director and Chief Executive Officer of the Nigerian Consumer Credit Corporation, Uzoma Nwagba, said the government plans to expand the programme to 500,000 beneficiaries initially and one million Nigerians before the end of the year.
He urged beneficiaries to repay their loans promptly, stressing that responsible borrowing would allow more young entrepreneurs to benefit from the initiative.
