Are you interested in getting some extra money for free in this harsh economic condition? Then look no further because there is an ongoing federal government grant loan to help you sort yourself out. If you want to know how to get the loan, then you should not skip this article for anything in the world. Stay reading to the end and I bet this will put a smile on your face again.
There has been a drastic rise in the standard of living of citizens in the last few years. This could be seen as one of the effects of COVID-19 on the country. However, the situation was further heightened with the removal of fuel subsidy in 2023 which has left many citizens devastated. Many people are unable to feed themselves and small businesses are folding up.
To help curb the situation, the federal government has decided to disburse some amount of money to individuals and small business owners in what is called a “federal Government Grant Loan”. As you continue reading, I will give you the details of this loan and how you can get the loan.
What Is A Federal Government Grant Loan?
The term federal government grant loan is used to describe the financial assistance and support by the federal government to individuals, businesses, and organizations for the purpose of alleviating poverty and helping them grow. In essence, the loan is meant to create more jobs for the citizens of the country thereby reducing unemployment and poverty.
How Does the Federal Government Grant Loan Work?
The grant loans of the federal government are of different types. Some of them are
- Small and Medium Scale Business Loan
- Nano Business Loan
- Individual Loan
- Loans for Organizations.
These loans are all meant for citizens of this country with varying eligibility criteria. So, if you meet the criteria, all you need to do is visit the website to apply for it. After proper scrutiny, the funds will be disbursed and monitored to ensure that they are used for the purpose that they were given. The most recent type of grant loan is for Nano Businesses. See the eligibility criteria/requirements below.
Eligibility Criteria For Federal Government Grant Loan.
To get the Nigerian federal government grant loan, you must fulfill the following eligibility conditions.
- You must own a Nano Business: this is a very small-scale business that is operated by one person or just a few people. The value asset and annual turnover are usually below 1 million naira each. Also, you are expected to have less than 4 employees in the business.
- You must be operating a business with progressive economic potential: that is to say, your business must have the ability to create jobs and increase wages for the workers.
- Must be willing to engage additional staff if the turnover of the business increases: this means that your business must have the potential to grow from a nono to a small-scale business after getting the grant. And by extension, it should be willing to employ more manpower to work thereby reducing the rate of unemployment in the country.
- Provide proof of residential or business address: you will also need to submit the correct address of your business or residence. For easier location, include the closest landmark to the address provided. This could be a church, school, company, etc.
- You must provide personal and banking information: you will also be required to provide your banking information like your Bank Verification Number (BVN), account name, account number, etc.
Note that with these eligibility criteria, artisans, creatives, transporters, food service owners, ICT operators, traders, etc are eligible to apply for the loan.
How To Apply For A Federal Government Grant Loan.
You can apply for the federal government grant in two ways. The first method is to visit the secretariat of your local government area and manually fill out a form. This could take a long time to process. Hence the second method is more reliable.
The second method involves filling out an application form online. Here are the steps involved.
- Open your browser and visit the fedgrantandloan.gov.ng website.
- Read through the various criteria and instructions.
- Now click on Apply Now
- This will redirect you to the application portal
- Follow the prompts to fill out the application form by entering your information into every required feed.
- Re-read the provided information to make sure that it is correct.
- Now, click “submit” to end the process.
How Much Is The Federal Government Grant Loan In Nigeria?
This loan is in different categories at different times hence the amount varies with each category. The federal grant that is meant for nano businesses is marked at ₦50,000 for each business. However, there are others for small-scale businesses with larger amounts. There are also grants for individuals and households. This has a fairly smaller amount and the criteria are different.
How Long Does It Take To Get A Federal Government Grant Loan?
The federal government grant loan is rolled out periodically and each period has a deadline. Hence, after the deadline, a few weeks are taken to assess all entries before the funds are disbursed. Therefore, it could take about a month or more to get the federal government grant loan.
What Is The Repayment Plan Of The Federal Government Grant Loan?
It will interest and excite you to know that the grant given by the federal government is free. In other words, you do not have to repay the money. It is one of the ways that the government has decided to support its citizens and alleviate poverty in the country. Therefore, the loan has no repayment plan because you are not expected to repay it.
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Is There A Federal Government Grant Loan For Individuals?
Yes, as we have earlier stated, there are several types and categories of grant loans being released by the federal government from time to time. The most recent one is the Nano Business loan whose criteria were explained above. However, there is also a grant for individuals. To be eligible for this loan, you must be a citizen of Nigeria with a valid local government of origin. You will also need to enter your bank information among others.
How Much Is The Federal Government Grant For Individuals?
The federal government grant for individuals is ₦25,000. This is unlike that of Nano businesses which is ₦50,000. This grant loan aims to cushion the effects of the fuel subsidy removal on the individual. It was launched in the latter part of 2023 and is meant to run through the first part of 2024.
Conclusion
Federal government grant loans are easy to get as they are meant for citizens. You must, however, meet the set criteria and provide all needed requirements to qualify for the loan. This post has explained the requirements and how to get the loan. I hope you will grab the opportunity to apply for yours today.