YouthCred Loan: How to apply for FG’s N2m business loan
The project YouthCred, which was launched in Abuja on Wednesday, is intended to assist young entrepreneurs who struggle to obtain loans from commercial banks due to a lack of collateral.
Through the project, the government intends to provide cheap loans ranging from N200,000 to N2 million to about 500,000 young company entrepreneurs.
On the other hand, the Federal government also approves the loan for student to get gadgets, laptops, phones and other accessories.
Who can apply for the YouthCred Loan?
To be eligible for the loan, applicants must:
- Be between 18 and 39 years old.
- Own or operate a business.
- Have an excellent credit history.
- Demonstrate that their business generates revenue and that they can pay back the loan.
How much can you get?
Successful applicants may receive:
- A minimum of N200,000.
- A maximum of N2 million.
Note: The amount granted will be determined by the applicant’s business cash flow, repayment capabilities, and credit history.
How to apply for the YouthCred Loan
Interested candidates are expected to:
- Visit YouthCred’s website.
- Fill out the online application form.
- Submit the required personal and business information.
- Proceed through the verification process.
- Applications will be processed by financial institutions participating in the YouthCred project.
Do you require collateral?
No.
The government stated that applicants do not need collateral or guarantors to qualify for the loan.
Instead, eligibility and loan amount will be determined by the applicant’s capacity to repay, credit history, and business cash flow.
How long do you have to repay?
Borrowers can select payback intervals ranging from one to twelve months, depending on what works best for their business.
Who can benefit?
The programme is open to several types of young entrepreneurs, including:
- Caterers
- Makeup artists
- Fashion designers and tailors
- Ride-hailing drivers
- Content creators
- Mechanics
- Young farmers
- National Youth Service Corps (NYSC) members
- Other owners of micro and small businesses
How to qualify for a bigger loan?
Beneficiaries who repay their loans on time will be able to access higher sums in the future. They can also boost their chances by maintaining a decent credit score and completing the platform’s financial literacy program.
Taiwo Oyedele, Minister of Finance and Coordinating Minister of the Economy, stated at the opening that the scheme was established to assist young Nigerians in unlocking entrepreneurial potential through inexpensive finance.
“You may be wondering why the focus is on entrepreneurs. That’s because more than 90% of Nigeria’s MSMEs are micro businesses run by individuals, from tailors to ride-hailing drivers, fashion designers, caterers, content creators, mechanics, and young farmers,” Oyedele explained.
He stated that the effort would assist young entrepreneurs in expanding their firms without having to deal with the severe lending requirements that commercial banks typically impose.
Uzoma Nwagba, Managing Director and CEO of the Nigerian Consumer Credit Corporation, stated that the government intends to reach 500,000 beneficiaries in the first phase before expanding the number to one million by the end of the year.
He also encouraged beneficiaries to repay their loans on time so that additional young Nigerians might benefit from the programme.