The Central Bank of Nigeria (CBN), together with the Committee of Bankers, explained how to get creative sector loans.
The two sides have developed a Creative Industry Finance Initiative (CIFI) as part of efforts to boost job creation in Nigeria, especially among the country’s youth. The initiative is based on four pillars which include fashion, information technology, film and music.
Recall that last year, the CBN in collaboration with the Committee of Bankers unveiled the Creative Industries Funding Initiative (CIFI), which was to enable businesses to obtain loans of up to 500 million naira.
Applicants interested in the creative industry are encouraged to submit their application to their bank for approval and subsequent disbursement.
How to benefit from the Creative Industries Funding Initiative (CIFI): Categories of businesses that will benefit include Fashion, information technology, film production, film distribution, music and Student loan in software engineering.
Part of the steps in applying for a loan is to prepare your business plan or your statement on the amount you want for your business.
You can get a loan of up to:
- N3 million for a software engineering student
- 30 million naira for a film production company
- 500 million naira for a film distribution company
- Cover your rental / service charges for fashion and information technology companies
- Cover your training costs, equipment costs and rental / service costs for music companies
After preparing the business plan indicating the amount needed for the business, applicants are advised to go to the bank of their choice to apply for the loan.
The bank will discuss, analyze your request and, if successful, disburse the funds. Note that the maximum interest rate of 9% per year (all charges included) is applicable to all loans.
The loan repayment terms in the different categories are:
- For the student loan in software engineering, it is 3 years maximum
- For film production and distribution, it is a maximum of 10 years
- For fashion, information technology (IT) and music, it is 10 years maximum.
For more information you can visit www.cbn.gov.ng