Three Low Interest Loan With Long Repayment Plan For NYSC Members

As the years roll by, the national youth service corps (NYSC) programme keeps adding new project. This is to fill in new gaps in the life's of Nigerian youths. It is known that the major drawback affecting majority of graduates in Nigeria is start-up capital for business. With good ideas on profitable entrepreneur skills, many waste their talent on searching for a job because of lack of finance. However, with available loans with good terms and conditions, the fear of loan will be dealt with.
Bank loans in Nigeria normally come with many difficult terms and conditions. This is not easy for young graduates to meet. So therefore, the NYSC board decides to partner with Central Bank Of Nigeria (CBN), Bank Of industry (BOI) and NYSC foundation to provide loan of different amount with simple terms and conditions to corp members. In this post, you will learn about these loans and how to apply.
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CBN Youth Innovative Entrepreneurship Development (YIED) Programme

The central bank of Nigeria in partnership with Heritage bank launch a credit programme for serving corp members. This is also extended to corp members who have completed their service year not more than 5 years after and must fall between the age range of 18-35 years. Individual can get credit of up to 3 million naira or 10 million naira for group of 3-5 corp members who are eligible. The interest rate is 9 % per annum with a tenor period of one year for working capital loan and three years for term loan. The payment plan stretch across seven years period with a two years moratorium.

Collateral

1. Tertiary institutions certificates
2. NYSC discharge certificate (serving corp members will pledge their NYSC discharge certificate and tertiary institutions certificates)
3. Legal ownership of asset financed by the bank
4. 3rd party guarantors

Application Procedure

Interested corp members should do well to always check CBN website when the site will be open. The application is open once every year and last a period of two weeks. Application is through www.yield-hbng.com using NYSC state code. You can apply as an individual or a group of 3-5. To be approve, you need to write a compelling business plan indicating cash flow.

Low interest loan

BOI Graduate Entrepreneurship Fund (GEF) Programme

The main target of Bank of industry is to encourage local production in Nigeria. They willingly provide loans to those with business plans in more than 40 small medium enterprises (SME) clusters. However, it's special scheme for NYSC serving members to encourage them venture into business and employ others. It's core objective is to address the entrepreneurship capacity gap of NYSC members who are expected to produce bankable business plan after the three days capacity building programme, deepen financial inclusion by de-risking the NYSC member and making them eligible for concessional loans. To end it all, they ensure the sustainability of the business of the eventual loan beneficiary through effective monitoring by the NYSC directorates and BOI.
The loans range from 500000 naira to 2 million naira. The interest rate is 9 % per annum with tenor ranging from 3-5 years and moratorium of 6-12 months period.

Collateral

1. Undertaking by NYSC directorates not to release discharge certificate until the loan is liquidated
2. External guarantor acceptable to BOI who must belong to any of the following categories
i. One senior civil servants (level 7 and above)
ii. Bankers (not below the level of banking officer) who must have been confirmed by current employees
iii. Professionals: medical doctors, lawyers, accountants, engineers, pharmacist, etc.
iv. Senior staff of reputable quoted company or international oil companies
v. Clergyman
The guarantors must be supported with a notarized statement of net worth acceptable to BOI.

Method Of Application

Application is open around January and February of every year.
1. Application is done through their portal www.boi.ng/gef where applicants update their business plan. It is an online business plan competition between applicants. The best plans with the right level of risk accept criteria (RAC) with promising real sector business ideas gets a node. It is compose of two stage. The first stage make use of questionnaire to get the applicants knowledge about business in general. This include value preposition, customer segment, risk, competition among others. This account for 40 % of the total score. The final 60 % is awarded from the business plan/ideas.
2. Applicants will undergo a three days intensive entrepreneurship capacity building programme in one of the seven centers. The centers are in NYSC orientation camp Plateau (North Central), Katsina (North West), Delta (South South), Abia (South East), Osun (South West), Taraba (North East) and Lagos.
3. Successful applicants will be given the loan.

NYSC Foundation

NYSC Foundation is a body formed by ex corp members. It is a non-government, non-political and private sector driven organization. It is registered with the corporate affairs commission (CAC), economic and financial crime commission (EFCC) and with the federal ministry of youth and development which serves as the patron.
Their vision is to give back to Nigeria while helping corp members into business. They provide loans at low interest rate to corp members. The maximum loan corp members are eligible to is 400000 naira. With an interest rate of 5 % one time administrative charge, it has a moratorium period of 3 months. Repayment plan is for 24 months.
Read Also: Official document to register at NYSC orientation camp

Eligibility

To be eligible for this loan, serving corp members must subscribe to be a member. To be a member, visit any NYSC state Secretariat Nationwide and pay a one time fee of 500 naira to the local government inspector (LGI). After which you will fill a form containing your details. For ex corp members to be a member, they are required to visit any NYSC state Secretariat Nationwide and pay the sum of 2000 naira to the LGI before filling same form.
Write an application letter along with a good business proposal. Make photocopies of evidence of payment and submit to NYSC Secretariat across the country. Approve applicant will get called in how to get their loan
Note
The reason most corp members loan application is rejected is the business proposal. If the business proposal is faulty, no reasonable bank will approve it. No bank wants to be having bad debtors.
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