The Central Bank of Nigeria says it’s now disbursing loans to businesses in the creative industry. It’s looking to provide funding worth up to ₦500 million to enterprises working in this space, as part of its Creative Industry Financing Initiative (CIFI).
The sectors targeted by this program are fashion, information technology, and entertainment. If you’re a fashion venture, ICT business, music producer, movie producer or distributor, or a software engineering student, you’re invited to apply for a loan.
The funds can be obtained from any commercial bank, subject to applicants meeting pre-established conditions laid out by the CBN. According to the apex bank’s statement regarding the loan, the maximum amounts disbursed will depend on the pre-stated category to which applicants belong.
1. Software engineering students could get up to ₦3 million.
2. Movie producers may get a maximum of ₦30 million.
3. Movie distribution businesses will be able to access loans of up to ₦500 million.
4. Fashion and ICT businesses can get loans that’ll help them cover their rent or service fees. Music businesses will get this as well; they will also have their training and equipment fees taken care of by the funding they get under the initiative.
There’s a maximum 9% interest rate on the loans. The tenure of these loans will also depend on the category to which beneficiaries belong.
1. Loans for software engineering students are expected to be repaid within three years of being received.
2. Businesses in the movie production and distribution, ICT and fashion categories will be given ten years to repay their loans.
The maximum interest on these loans is 9%. It’s inclusive of all charges associated with the funds.
The CIFI is a joint initiative of the CBN and Deposit Money Banks (DMBs), which has been set up to strengthen existing businesses and create new jobs for Nigeria’s ever-expanding labour force.
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