Loan Tenor

 2.6 Loan Tenor The facility shall have a maximum tenor of one (1) year for micro enterprises and up to five (5) years for SMEs with option of moratorium. PFIs shall access the fund as many times as possible upon full repayment. 

2.7 Interest Rates The Fund shall be administered at an interest rate of 3% per annum under the wholesale funding to the PFIs with a spread of 6% bringing the lending rate to borrowers at a maximum of 9 % per annum inclusive of all charges. The interest charges shall be subject to review by the Steering Committee of the Fund from time to time 

2.8 Acceptable Collateral (from PFIs excluding DMBs) Any or a combination of the following collateral shall be accepted by the CBN as security for loans from PFIs (excluding DMBs) to cover a minimum of 75% of the loan amount: 

a) Financial Assets including pledge of Treasury Bills, Placements, Bonds, etc.

b) Third Party Guarantee from at least two (2) Board Members/Trustees and/or Third Party Guarantee from high net worth individuals 

c) Any other collateral acceptable by the CBN from time to time.