How to Apply for CBN TIES Loan for Students / Graduates

How to Apply for CBN TIES Loan for Students / Graduates

How to Apply for CBN TIES Loan for Students / Graduates.

The Tertiary Institutions Entrepreneurship Scheme (TIES) was launched by the Central Bank of Nigeria (CBN) to give students and graduates with a platform to receive loans. The application date is December 31, 2031.

About CBN Tertiary Institutions Entrepreneurship Scheme (TIES) LOAN

The TIES’ main goal is to provide financing to Nigerian undergraduates and graduates from polytechnics and universities who have unique entrepreneurial and technological concepts.

TIES aims to move undergraduates and graduates away from white-collar jobs and toward a culture of entrepreneurship development for economic growth and employment creation.

How to Apply for CBN TIES Loan for Students / Graduates

How to Apply for CBN TIES Loan » How undergraduates can apply «

The scheme’s development component would allow undergraduates to apply for subsidies.

The Developmental Component would be awarded in the form of grants to Nigerian polytechnics and universities in a nationwide biennial entrepreneurship competition.

The competition aims to raise undergraduates’ awareness and visibility of high-impact entrepreneurial/technological concepts, stimulate economically viable and transformative inventions, and foster entrepreneurial talent use hunts in Nigerian polytechnics and universities.

On a specialized web page (https://cbnties.com.ng), interested Nigerian polytechnics and universities should apply to participate in the national biannual entrepreneurship competition, presenting basic specifics of the initiative, potential effect, and evidence of uniqueness.

How it works for Undergraduates:

The CBN would appoint a Body of Experts (BoE) from the business and governmental sectors to review entrepreneurial and technological innovations submitted by Nigerians for the biennial regional and national entrepreneurship competitions.

The BoE will evaluate the applications submitted through engagements in which undergraduates compete at regional levels by pitching entrepreneurial and technological solutions, with finalists continuing to the national event for final consideration and ranking by the BoE.

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For four (4) weeks, the showcasing programs will be shown on social media and national television stations to help highlight the benefits of entrepreneurship and change attitudes and social perceptions about it.

The grant will be awarded to the top five (5) entrepreneurial and technological innovations at the national level, on the recommendation of the BoE, and will be disbursed in 55:45 ratio tranches directly to a dedicated account for the grant opened by Nigerian polytechnics and universities, subject to approved milestones.

Graduate Eligibility for CBN TIES LOAN:

Only those holding a polytechnic or university diploma from Nigeria will be considered. In addition, innovative entrepreneurial activities with significant potential for export, job creation, and transformational impact will be given priority.

Your eligibility will be confirmed by the documentation specified below.

  • BSc/HND/ or comparable first-degree certificate
  • Certificate of dismissal or exemption from the National Youth Service Corps (NYSC)
  • Not more than 7 years post-NYSC, with a certificate of participation from polytechnics and universities demonstrating entrepreneurship training.

How to Apply for CBN TIES Loan » How graduates can apply «

Graduates of Nigerian polytechnics and universities would be able to apply for TIES’ Term Loan Component.

Individuals and businesses can use the Term Loan Component, which consists of two tires.

Individual projects (Tier 1)

This category’s maximum loan amount is N5.0 million, with a 5-year repayment period. The present annual interest rate on the loan is 5%; however, from March 1, 2022, it will increase to 9%. In addition, the loan has a maximum 12-month principal and interest moratorium.

Documentation Collateral Requirements:

The applicant must present certified true copies (CTC) of all required forms as a corporate entity registered with the Corporate Affairs Commission (CAC).

National Youth Service Certificate (NYSC) discharge or exemption certificate; Bank Verification Number (BVN); First-degree certificate (BSc/HND or equivalent); National Youth Service Certificate (NYSC) discharge or exemption certificate;
Polytechnics and universities give certificates of participation demonstrating entrepreneurship training.

Requirements for Collateral:

A senior federal/state civil or public worker (not below level 10 and with fewer than 5 years to retire from employment), clergy of renown and reputation, or acknowledged traditional ruler must sign the Global Standing Instruction (GSI).

Tier 2 – Partnership / Company projects

The maximum loan amount for company projects is N25.0 million, with a five-year repayment period. The current annual interest rate on the loan is 5%, but it will increase to 9% on March 1, 2022. A 12-month principal and interest moratorium is also included in the loan.

Collateral Documentation Requirements:

The partnership or company must apply to the Corporate Affairs Commission (CAC) as a registered business and submit certified true copies (CTC) of all applicable forms.

Each member of the partnership or corporation must additionally submit the following documents:

  • Number for Bank Verification (BVN)
  • BSc/HND or comparable first-degree certificate
  • Certificate of dismissal or exemption from the National Youth Service Corps (NYSC)
  • Polytechnics and universities give certificates of participation demonstrating entrepreneurship training.
  • Requirements for Collateral Requirements

Third-party guarantee from a senior federal/state civil or public servant (not below level 10 and with less than 5 years to retire from service), clergy of note and reputation, or recognized traditional ruler; and duly signed Global Standing Instruction (GSI) by a member of the partnership or company.

Award of Grants

The following awards will be given to the top five (5) Nigerian polytechnics and universities with the greatest entrepreneurial pitches/ideas:

N150.0 million was awarded first place; N120.0 million was awarded second place; N100.0 million was awarded third place; N80.0 million was awarded fourth place; and N50.0 million was awarded fifth place.
The funding will be made available in the following areas:

  • Production, processing, storage, and logistics are all aspects of agribusiness.
  • Application/software development, business process outsourcing, robotics, and data management are all examples of information technology.
  • Entertainment, artwork, publishing, culinary/event management, fashion, photography, and beauty/cosmetics are all examples of the creative industry.
  • Medical innovation, robotics, ticketing systems, traffic systems, renewable energy, waste management; and any other activity that the CBN deems appropriate from time to time.

DURATION OF CBN TIES LOAN

Note that, depending on the complexity of the project, the Scheme will be implemented for a period of 10 years in the first instance (not exceeding December 31, 2031).

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