Have you heard of the Private Sector-Led Accelerated Agriculture Development Scheme (P-AADS) by CBN? Do you want to be part of the CBN P-AADS N2 billion loan to farmers? Are you looking for how to apply for the P-AADS loan?
P-AADS is another federal Government of Nigeria farmers loan amongst other agricultural loan to help farmers expand or start up farmers to increase food production and provide food security in Nigeria.
Objectives of P-AADS
- Fast track land clearing for primary production of agricultural commodities;
- Promote food security through the provision of large contiguous land for agricultural production across all states;
- Collaborate with agro-processors engaged in backward integration by providing financing for extended land clearing in proximal locations for cultivating commodities for supply of industrial raw materials;
- Support other capable stakeholders interested in unlocking land for agriculture through appropriate financing; and
- Engender job creation for individual farmers that will cultivate on the cleared land.
Interest Rate: Interest rate under the intervention shall be 5.0% p.a. (all inclusive) up to 28th February 2021. Interest on the facility from 1st March 2021 shall be 9% p.a. (all inclusive).
Annual crops: Maximum tenor of six (6) years with six (6) months moratorium.
Perennial crops: Maximum tenor of ten (10) years with one-year moratorium.
Collateral Requirement: The collateral to be pledged by participants under the Scheme shall be title of the cleared land and other acceptable collateral prescribed under the ABP. CBN shall bear 50% of the credit risk in the event of default by the participant.
Focal Commodities for P-AADS Loan 2020/2021
Agricultural commodities eligible for consideration under the Scheme are:
- Oil Palm
Eligibility of P-AADS Farmers Loan 2020
- Agro-processors of agricultural commodities engaged in backward integration;
- Prime anchors and commodity associations participating under the Anchor Borrowers’ Programme (ABP) with evidence of contiguous land readily available for clearing and cultivation of agricultural commodities; and
- Other companies and individuals with evidence of ownership of contiguous land readily available for clearing and cultivation of agricultural commodities
Prospective P-AADS participants must:
- be existing or new firms engaged in agricultural production with proven capacity and bankable proposal
- possess acceptable title for contiguous lands of not less than 20 hectares;
- have good credit record
- be able to provide the required collateral for participation and
- Provide evidence of capacity to cultivate a focal commodity directly or engagement of farmers, including youths as in-growers or out-growers to cultivate on the land after clearing
APPLICATION FORM AND REGISTRATION PORTAL TO COMMENCE SOON
For more information on the P-AADS Loan visit www.cbn.gov.ng/
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