Government Agency Providing Free Loan

THE NATIONAL ECONOMIC RECONSTRUCTION FUND

(NERFUND)

INTRODUCTION

The National Economic Reconstruction Fund (NERFUND) was established by Decree No. 2 of 1989 to act
as a catalyst towards the stimulation of the rapid rise of real production enterprises in the country. The
NERFUND was specifically mandated to provide long/medium term loans to entrepreneurs through
commercial/merchant banks for industrial growth of Nigeria. For the delivery of these services, the
institution focused on its vision, mission and mandate as stipulated by its decree.

1.0 VISION

1.1 “To continuously build on our present expertise and grow to become, not only an apex institution
for SME financing in Nigeria, but a reference point for credible performance, based on prudent
utilization of human and material resources, so as to continue to attract foreign funding in aid of
the Nigeria Small and Medium Scale real production Entrepreneur”.

PERFORMANCE TARGETS/CUSTOMER’S EXPECTATIONS

i) To provide term loans of up to N120million of a tenor of maximum of 10years inclusive of a

moratorium of 3years maximum denominated in foreign currency or in naira or both depending
on the availability of the funds.

ii) Provide working capital loans of up to N50million for a tenor of maximum of 3years inclusive of a
six months moratorium in naira currency only.
iii) Provide extension services including advisory services direct to promoters of small and medium
scale industrialists.

DOES YOUR PROJECT QUALIFY?

A project qualifies for NERFUND funding if it is engaged in manufacturing

and agro-allied projects, mining, quarrying, industrial support services, and
ancillary projects provided that:

a) the enterprise or project is wholly owned by Nigerians;

b) the enterprise or project is small – or medium – scale and its fixed assets,
other than land including the cost of fixed assets, that requires funding
from NERFUND, does not exceed N36 million; and

c) in the case of a manufacturing enterprise or project, at least 60 per cent of

its raw materials and other production inputs are locally derived.

Preference is given to enterprises or projects located in the rural areas.

Your bank may also demand that you possess thorough knowledge of your
project, obtain able management and show commitment to it, etc. Banks are
expected to assist project promoters with bankable ideas and provide them
with technical and expert assistance through to the maturity of the financed
projects.
HOW TO OBTAIN THE NERFUND LOAN

Obtaining funding from the NERFUND is very serious business.

Thoroughly study and understand your project. You should be the expert on
its market, finance, process and prospects. Promote the project to attract
other financiers, managers, technicians and investors, partners, shareholders
or employees.

Feel free to consult your State Advisory Committee for advice and guidance
at every stage of your preparation and application.
Your first port of call for the NERFUND loan application is your local
bank, which will accept and process your application for the bank’s
consideration. Since the banks are the primary obligators for the loans, loan
applications will be considered in the usual customs of the participating
banks.

This process is to ensure that only projects that banks are reasonably sure
will succeed would be financed by the NERFUND, as the Fund is not in
business to finance failures. Partnerships and Corporate bodies in which
successful traders, financiers, managers, technocrats and promoters team up
to promote productive activities, would be considered more secure
investments than sole proprietorship.

OBLIGATIONS OF CUSTOMERS

i) They are to be fully acquainted with the regulatory requirements before participating in the
NERFUND scheme.

ii) Adhere strictly to all approved procedures for obtaining the NERFUND loans

iii) Provide all relevant and prescribed formats and allow reasonable time for processing the loans
required.

iv) Ready to be understanding and courteous in their requests at all times.

COMPLAINTS METHODS/PROCEDURES

Aggrieved Customers should direct their complaints to

(1) Nodal Officer

Alh. Usman Shehu Aboki

Room. 7 or 8
NERFUND Hqtrs Office
N0.1340 Aminu Kano Crescent
P.M.B. 319 Abuja
Tel. 09-670491

(2) MD/CEO
Alh. Maina Gimba
NERFUND Hqtrs Office
N0. 1340 Aminu Kano Crescent
 P.M.B. 319 Abuja.

(3) The Ministerial Nonal Officer

Room 141 First Floor
Hqtrs Office Complex
Tel 09-2340670, 08033354909
email servicomfmf@gov.ng
servicomfmf@yahoo.com

(4) Honorable Minister

7th Floor
Federal Ministry of Finaance
Hqtrs Office Complex
Central Business District
Abuja.
Tel.09-2340932,09-2336929

EXPECTATIONS FROM CLIENTS

i) Source of long term funds at affordable rates to ensure sustenance of projects financed.

ii) Efficient and courteous service.

iii) Prompt response to all issues raised by clients.

iv) Transparent and Accountable Management.

v) Provide linkage to government policies to ensure that SME expectations are incorporated in
annual development plans and policies.

LOANS FOR PRIVATE SCHOOL OWNERS AND OTHER ENTREPRENEURS.

Two other banks have decide to give long term loans to operators of private

Shool and other entrepreneurs who are ready to do business with them for long

Without collateral and at moderately low interest rate.

H ere are the banks :

CITI-SERVE MICRO FINANCE BANK

This is a micro finance bank were you can get loan. According to the C.E.O. of

The bank you don’t need to run an account with the bank for six month to quality

For loan This bank is giving special preference to shool that belong to the association for formidable
educational development (AFED). If you are a school owner ,this bank Is good for you as they will not
demand for any collateral to grant you loan and You will be given an interest rate lower than the normal
rate.

NOTE.
AFED must be able to certify you as a bonafide member before you can enjoy this Loan apart from school
owners ,other business men and women can also approach this bank for loan in as much asyou have a
legitimate business and genuine documents

To apply for the loan.

You only need to run an account with them for three month and if the income from your business (as will
be reflected by your account)shows the effectiveness of your bsiness,they will certainly grant you this
loan.

As your partnership with them grows,their demand for collateral wanes .this is a very good bank for
entrepreneurs who have no collateral to secure loan.this bank’s emphasis is on character and credit
worthiness and not collateral according to their C.E.O

CONTACT ADDRESS:

368 ikorondu road

Maryland Lagos, Nigeria

CONTACT PERSON

Mr . Nduka

Tel :08036054269

UNITED BANKS FOR AFRICA (UBA)

This is another bank that AFED has reached an agreement with. Under this agreement, any bonafide
member of AFED can apply for loan from any UBA branch without collateral and interest rate below the
normal interest rate. To open a school account you can contact this branch of UBA so as to facilitate your
loan.

Apart from school owners, this particular UBA is really interested in entrepreneurs who are really serious
about building their business. Their hospitality is second to to none. All you need to secure loan from them
is do business with them for six month and run your account very well. They will investigate you and your
business and at once you are cleared.

I advise you should start by applying for small loan that you can easily pay back before the said time. The
more prompt you pay back your small loan the more credit worthy you become and in no distant future
they will definetily grant you a big loan in as much as they are satisfied that you can meet up with the
payment.

You can enjoy this special arrangement by opening an account with any UBA branch in your area and if
you already have an account just get in touch with your account officer and inquire how to benefit from
their loan packages.

INTEGRATED MICRO FINANCE BANK

This is another bank that gives loan without collateral to small scale business especially those involve in
commercial activities.

HOW IT WORKS

You will open this loan account with them you will need just one surety ( preferably a member of the
immediate family). They will do their site inspection and you will start a daily contribution of a fixed
amount.

At the time of the month the bank will give you 3 times what ever you have on your account with them.

REPAYMENT OF LOAN

You repay this loan by continuing the daily fix contribution but with additional 2% for the next 2 months.

You can decide to pay it all before the 2 months.

You can get another loan as soon as you pay the existing loan.

MATHEMATICAL ANALYSIS

If your daily contribution is N1000

In 30 days =N1000 x 30 =N30,000

you can now get a loan of N90,000

You will now pay back N60,000 being the balance

2 x N1000 = N20
100

Total daily contribution = 1000 + 20 = 1020

If your daily contribution is N10,000

In 30 days = N10,000 x 30=N300,000

You get a loan of N900,000

During repayment your daily contribution becomes N10,200 daily for the next 2 month after which you
continue with your normal N10,000

Contact Information:

Intergrated micro finance bank

64 Adeniyi Jones Avenue, Ikeja, Lagos.

Tel: +23412716530-9, 2717390.

Fax: +23412717392

Email: info@imfb-bank.com

Website: www.imfb-bank.com
NICE MICROFINANCE BANK (OLD NAME : NISE COMMUNITY BANK)

This is another bank that gives loan to small and medium scale business as well as co-operative society.
They give more loan to co-operative societies.

If you are in co-operative society, just inform your people and contact them and they will grant you
collectively once they are satisfied with your proposal. They can give you up to N1m to each member of
the co-operative.

Recent project

Granting of N10m each to 31 co-operative society in Anambra State. (check the punch, july 24 for proof)

Contact information

Ngene –Oka market square

Along Amawbia/ Agulu Road,
Awka South LG, Anambra State.

DIAMOND BANK

Diamond Bank offers access to short and medium term financing for working capital & asset purchase
needs with reduced collateral requirements. These loan products are as follows;

Revolving Credit is a Line of Credit / Term loan for short-term financing (max. 1 year)

Instalment Loan is a Term Loan for fixed assets financing available for up to 3 years

Mediloan is a Partnership between Diamond bank and USAID (United States Agency for International
Development), that has developed a credit Scheme focused on businesses operating specifically in the
health care sector.

Local Purchase Order (LPO) finance – is a short term finance facility to MSME customers to carry out
supply requests. The supply order must come from only pre-approved institutions by Diamond Bank Plc

Contract finance - is a short term finance facility for the execution of contracts from Diamond Bank’s
approved list of companies. Finance is available for a variety of legitimate contracts awarded by
government agencies and reputable private organizations in the country operating in the different sectors
and contracts with varying levels of complexity.

Import finance - offers credit facilities to MSME customers who require finance for importing either raw
materials or finished goods for sale. It also offers short term credit facilities to these importers for the
purpose of duty payment.

Diamond Bank Free Interest Loans

A Corporate Social Responsibility initiative to promote small & growing businesses. The scheme gives
micro, small and medium enterprises interest free loans for their businesses with minimal colleteral.
For you to get the loan, you will need to open a Business xpress account with Diamond Bank and run the
account for a minimum of 3 months for the bank to be able to build a relationship with you...

APART FROM FROM BANKS, INCLUDED INTHIS PARKAGE ARE SOME FINANCIAL ORGANISATIONS
AND NGOS THAT ACTUALLY GIVE LOANS WITHOUT COLLETERAL.

IN FACT, THE ONLY THING YOU WILL NEED TO SECURE LOANS FROM THESE ORGANISATIONS AND
NGOS ARE:

1. A VERY GOOD LOAN PROPOSAL

2. AND A GOOD BUSINESS PLAN.

THE FORMAT FOR A GOOD BUSINESS PLAN

1. Title page
2. Statement of purpose or brief explanation of statement of purpose
3. Table of contnent
4. Business description
5. Market analysis
6. Business location
7. Management
8. Current financial record
9. Explanation of plans for growth
10. Explanation of financing for growth
11. Summary of the business and forecast for the future
12. Listing of business and personal references

HOW TO WRITE A LOAN PROPOSAL

A good load proposal must contain the details of:

i.What purpose the loan / grant is to serve.

ii.How you hope to achieve that purpose with the loan/ grant.
iii.When you need the loan /grant (the urgency of the loan /grant).
iv.How you intend to repay the loan

This is submitted to a loan officer. Remember, banks, NGOS or foundations who give loans or grant and
want to be sure that the beneficiary knows exactly what he/she needs the money for and also that
he/she can actually payback the loan or make a judicious use of the grant.

A good loan proposal has the following format:

1. GENERAL INFORMATION
i.The business name
ii.Address
iii.The principals and their status
iv.The purpose for which the loan is needed(state exactly what you want to use the loan/grant for.)
v.State the exact amount of money you need to execute that your personal need or for humanitarian
services. (grant)
2. BUSINESS DESCRIPTION
 i.Enumerate the beginning and the nature of your business
ii.State how old your business is
iii.State your number of staff
iv.State your current asset

NOTE
Describe your business using the above as guide (please, give facts and figures)

3. MANAGEMENT PROFILES
i.Write a short note on each of your staff.
ii.Give their educational background, work experience, skills/technical know-how and achievements
(either with you or their previous companies /business)

4. MARKET INFORMATION
i.Describe your products /service in term of need it fills. The uniqueness and effectiveness in filling
these needs.
ii.Describe those that will buy your products/ service and why they will buy it.
i.Identify your competitors and describe how your products/service will capitalize on the weakness of
their own products/ service and match the strength of their product /service as well.
iii.
iv.Describe how your product/service will add value to the market place.

5. FINANCIAL INFORMATION
ii.Prepare your balance sheet and income statement for the past 3 years.
iii.If you are just starting your business or about to go into the business, provide a projected balance
sheet and income statements.
iv.Prepare your own personal financial statement as well as that of your principal staff.

NOTE

Except you have the knowledge of accounting or you are an accountant, let an accountant do the financial
information for you.

If you still have problem writing your business plan and loan proposal or you don’t want to go through the
stress of writing it yourself, then contact BUSINESS IDEAS INCUBATION SERVICE @ 110 Tetlow,
Owerri or call 08140970926

LIST OF SOME FINANCIAL INSTITUTIONS AND NGOs

Lagos State

1. Growing businessfoundations (GBF)

( They give more of group loans than individual loan)
15th floor , UBA house
57, Marina Lagos
01-2664690
Contact person Mr Odianka Okeke (Manager, Credit Risk Mgt)
 2. Youth Business Initiative
29, Maloney street,
Lagos.
Contact person : Yinka O.Adebanjo

3. African Hope Organisation

7, Gbaja shopping complex
Near st. Anthony Catholic Church

4. Business and Professional women

Club Arcade Annex 7,

Tafawa Balewa shopping complex
Race Course
01-4971336

5. Development Alternative and Resources centre

7, Isaac John, GRA Ikeja
01-2673592

6. Development Initiative Network

90, Awolowo Road, V/I
01-2673592

7. Hope Worldwide Nigeria

2, Aibu street, off Bode Thomas Street
01-8042370
8. Human Angle
Zuma Complex, Suit 24, 202 road
estate close, Festac Town
01-888955

ENUGU STATE
1 Small Project Fund (Spf}

{individual loan}

2/5,Ikwuaco street,

Enugu

042-252727
Contact person : Mr John Umeh {manager}

2 Greenlife Foundation
 B6,C.T.C Plaza, 8 presidential Avenue

Npkokiti junction.

3 health and peace international Africa,

Second floor, 1 obiagu Road,

Ogui New layout.

042-256746

ABIA STATE

Abia Community Partners for Integrated Family

11,Adlabu Street,

Umuahia Abia State

JOS

Afro Centre for Development, Pease and Justice

43,Rwang pam street, jos

P.O. Box, Jos Plateau state.

OGUN

Association for community and Economic Development

14,lagos Road, Lafenwa Abeokuta

KADUNA

Centre for Development CommunicationS

AC5,Imam Road (Along kawo Abattoir Road)

Ungwan, Dosa Kaduna.

OYO

Centre for Hope

1 Ayo Adekunle close, New Bodija Estate

02-8106580

BAUCHI

Accord for Community Development,

Plot 1 Evergreen Street Ogbonda Estate,

Rivers state.

EDO STATE

St joseph multipurpose cooperative {For Women}

1 Ogiamin Street, off sakponba Road,

Benin City

Contact Person: Mrs. Ogbonna

INTERNATIONAL FOUNDATIONS WHERE YOU CAN GET FUNDS FROM FOR

YOUR BUSINESS.
WHAT YOU NEED TO KNOW BEFORE CONTACTING THESE FOUNDATIONS:

1. Visit the foundation’s website to get more information on how to apply and the guidelines.
2. If there is no website listed, contact the information by phone or letter for application
guidelines.
3. Request for their annual report. The information you need concerning the application guidelines
will be in it.
4. When writing a letter for individual grant, please be succinct. Go straight to the point stating the
purpose the money is to serve. Not forgetting the hardship you are going through now as a
result of your financial incapability. {write emotionally}
5. Find out those that will benefit a lot from your service or talent but could not afford it because
they are poor and write a letter on their behalf. State how the grant will enable you render
quality service or help these people in order to improve their lives.

{From experience and testimonies, this type of letter has always received more attention from
philanthropists and foundations than any other form of letters}

6. When you are contacting a foundation or a philanthropist. Please, I repeat use genuine
documents as your application will be declined immediately it is discovered that there is any
form of discrepancy in your documentation and their investigation.
7. Never give up, keep trying until your application is considered.

FOUNDATIONS PROFILES INCLUDE

DEMOCRACY AND GOVERNANCE {DG}

ECONOMIC GROWTH AND AGRICULTURAL DEVELOPMENT {EGAD}

HUMANITARIAN ASSITANCE {HA}

ENVIRONMENT {ENV}
 HUMAN CAPACITY DEVELOPMENT {HCD}

POPULATION, HEALTH AND NUTRITION {PHN}

1. FOUNDATION NAME: CENTRE FOR INTERNATIONAL PRIVATE ENTERPRISE

DATE FOUNDED: 1983

USAID SECTOR: EGAD

CONTACT INFORMATION:

Centre for international private enterprise

1155 18th street Nw,

Suite 700 Washington DC 20005

Tel: {202} 721- 9200

Fax: {202) 721- 9200

E-mail : cipe@cipe.org

Website: www.cipe.org

1. FOUNDATION NAME: CHEVRON CORPORATION FOUNDATION

DATE FOUNDED: N/A

USAID SECTOR:EGAD,HCD,ENV,PHN

CONTACT INFORMATION

Chevron corporation

575 market Street,

San Francisco,CA 94105-2846

Tel: {415} 894-7700

Website: www.chevron.com/community/frame.html

2. FOUNDATION NAME: CITI-GROUP FOUNDATION

DATE FOUNDED: N/A

USAID SECTOR: EGAD, HCD,

CONTACT INFORMATION

Charles V. Raymond,

Citi-group foundation
850 3rd Avenue, 13th floor

New York, NY 10022

Tel : {121}559-916

Website: www.citigroup.com/citigroup/homepage/foundation

4.FOUNDATION NAME: GATES FOUNDATION, BILL & MELINDA

DATE FOUNDED:1994

USAID SECTOR: PHN

CONTACT INFORMATION

BILL & Melinda gates foundation

P.O Box, 23350

Seattle,WA 98102

Tel : (206} 709-3100

Website: www.gatesfoundation.org

5.FOUNDATION NAME: COCACOLA FOUNDATION

DATE FOUNDED: HCD,ENV,PHN

CONTACT INFORMATION

Cocacola foundation,inc

1 coca-cola plaza, NW

Atlanta, GA 30313-3009

TEL: {404} 676-2568

WEBSITE: www.thecoca-colacompany.com/foundation/index.html

6.FOUNDATION NAME: FORD FOUNDATION

DATE FOUNDED:1936

USAID SECTOR: EGAD,HCD,ENV,PHN

CONTACT INFORMATION

Ford foundation

New york, NY 10017

Tel : {212} 869-2702

320 East 43rd street,

NEW York, NY 10017

Tel: (212) 573-5000

Fax: (212) 351-3677

Website: www.fordfound.org