How to get a loan from the Bank of Agriculture (BOA)
The Bank of Agriculture (BOA) is a bank approved by the government to support and make funds available to the Agricultural sector in Nigeria. They provide loans, guidance, and banking for farmers across the Nation. The bank became recognized as “the farmers’ bank”, but was restructured in the year 2000 as the Bank of Agriculture which has existed under different names since the year 1972.
13 Types of Loans you should know
The Bank of Agriculture currently has branches all across Nigeria, as it consistently provides loans to support Nigerians. The Central Bank of Nigeria (CBN) is the major owner of the bank alongside the Federal Ministry of finance, both of which are government agencies.
Loans offered by the Bank of Agriculture (BOA)
The following are the various kinds of loans offered by the Bank of Agriculture (BOA):
- Agricultural microloans
- Non-agricultural microloans
- SME loans
- Cooperative & farmers group loans
- On-lending loans
- Agri-business loans
- Funded & Guaranteed Collaborations.
Description and Criteria for getting the Loan
The following conditions must be satisfied to obtain each of the loan types:
- Agriculture micro loans
The micro loans scheme provides credit facilities that aid the financing of either Agriculture or Non-Agricultural innovations. They also support activities such as trading, farming, fisheries, horticulture, agro-processing, livestock, marketing of agricultural produce, crop production, etc.
The MicroLoan scheme gives loans with the maximum amount of N250,000 for two (2) years depending on the type of the project. Using this approach, both individuals and members of cooperative societies/groups could be entitled to the loan.
There’s a need for two (2) acceptable guarantors & a 20% loan deposit before the loan can be granted.
- Grow and Earn More (GEM)
The women across Nigeria are the major target for this type of loan. The loan limit does not exceed N1 million per beneficiary at the rate of 14% per annum (yearly), but this is subject to variation. All the applicants must have an account secured with the BOA branch nearest to their project location for a period not less than 12 weeks before purchasing and processing the loan application.
Similarly, as in the micro loans scheme, loans are granted to both individuals and groups and the project type determines the loan period. The need for collateral is exempted for this loan. There must be two (2) acceptable guarantors, as well as a 10% loan deposit in the savings account.
This loan aims to increase women’s access to finance and enhance their growth and relevance even as they become financially independent in Nigeria.
- Small and Medium Enterprise loan application for individuals
This is a collateralized loan whose maximum amount of credit facility an individual can access is N 5,000,000.00 which is mainly for Agricultural Projects.
- Collaboration on special credit
The description of BOA collaboration is as follows:
- Bank of Agriculture collaboration approach is a partnership program. It enables agencies to pool their resources together to grow the operations of their customers and collaborative partners’ groups of interest.
- They engage in collaborative ventures with international agencies, local agencies, Governments, and NGOs.
- Collaboration Loan/Special Credit Scheme to farmers involves an arrangement between BOA and Agencies to disburse funds to identified groups or individuals at a determined interest rate which varies according to the market rate.
- The condition for this type of collaboration is usually specified in a Memorandum of Understanding (MOU). In addition to the subject of the targeted group and line with BOA lending conditions.
Requirements for Maintaining an Account with the Bank of Agriculture
Different documents are required from individuals and groups who intend to maintain an account with BOA to have access to loans. The requirements for both individuals and companies or groups are further explained below.
Individual’s Account with BOA
Listed below are the documents required for individuals to maintain an account with BOA:
- An account opening form duly filled and signed
- 3 (Three) recent passport photographs
- Completed Mandate / Signed Card
- A recent copy of any utility bill, either PHCN or water bill (only photocopy is required) to be submitted by the person
- Signed Letter to the Bank
- A set-Off letter duly signed
- A photocopy of any means of identification (National I.D Card, International Passports or Driver License)
- A minimum initial deposit of N3,000.
Companies, cooperative societies, clubs, and other similar groups
The following documents must be made available by companies, cooperative societies, clubs, and other related groups:
- An account opening form is duly filled and signed by the appropriate parties.
- Three (3) recent passport photographs. Each from the Executives
- Completed Mandate / Signed Card
- A recent copy of any utility bill, either PHCN or water bill (only photocopy is required) to be submitted by each of the Executive
- Resolution to open Account with the Bank
- A copy of the code of ethics or constitution (Original copy to be sighted)
- Memorandum and Articles of Association approved by the Corporate Affairs Commission (Original copy to be sighted)
- Certificate of Registration / Incorporation issued by the Corporate Affairs Commission (Original copy to be sighted)
- A minimum initial deposit of N10,000.
Bank of Agriculture Interest rate
The interest rates differ depending on different metrics. Below are the available rates on each type of loan:
- 14% per annum for SME Agricultural production
- 14% per annum for SME Agro-processing
- 20% per annum for SME Agriculture Marketing
- 12% per annum for Micro Credit Loans (Agriculture)
- 20% per annum for Micro credit loans (Non-Agriculture)
- 14% per annum for YARN & GEM products
How to get a loan from the Bank of Agriculture
The following processes are involved in obtaining a loan from BOA:
Getting all the required documents ready is the first step to obtaining a loan from the Bank of Agriculture. And one must ensure compliance with the listed documents above.
- Visit the nearest BOA branch
Once your documents are readily prepared, take them to any of the BOA approved branches closer to your location. Please note that their website doesn’t support the online application for now. You can check online for the branch nearest to you.
- Submission of the documents
Once you get there and your intentions are made known, they attend to you and put you through the submission process.
Bank of Agriculture (BOA) contact details:
- Head office address: No, 1 Yakubu Gowon Way, P.M.B 2155, Kaduna, Nigeria.
- Customer care number: +234 7040202222
- Customer care email: email@example.com