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Nirsal Microfinance Bank Loan Application


The Nirsal Microfinance Bank otherwise known as NMFB is one of the leading financial institutions licensed by the CBN operating in Nigeria to offer loans for different purposes. One of these is the Nirsal covid-19 loan.

Nirsal Microfinance Bank is a subsidiary of the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL Plc.), a non-banking financial institution established in 2013 with a mandate to facilitate the free flow of affordable finance and investments to the agricultural sector.


Nirsal Microfinance Bank is tasked to redefine the agribusiness sector and its activities within the country. It does this by measuring, repricing, and then sharing agribusiness credit risks.


Nirsal Microfinance Bank Loan

1. The Agric, Small Medium Enterprise Investment Scheme (AGSMEIS)

AGSMEIS loan is a Nirsal Microfinance Bank agric loan that provides up to N10 million to small and medium-scale enterprises. The Agri-Business/Small and Medium Enterprise Investment Scheme is an initiative to support the Federal Government’s efforts and policy measures for the promotion of agricultural businesses and small/medium enterprises (SMEs) as vehicles for sustainable economic development and employment generation.

Businesses eligible for the AGSMEIS are those involved in creative & art industries (fashion, beauty, apparel & textile, arts & entertainment), Industrial & Manufacturing (agriculture & allied Processing, automobiles), Information & Communication Technology (telecommunication and media & publishing) and Hospitality (catering & event management). These loans are charged a single-digit interest of up to 9% per annum interest rate. They also do not require collateral security. 


How To Apply For The AGSMEIS Loan

Step 1: Get Trained

Attend compulsory training with a Nirsal Microfinance Bank certified Entrepreneurship Development Institute (EDI).


Step 2: Apply For A Loan

Create an account by clicking on ‘Apply now’ as an applicant, validate your BVN and select a Nirsal Microfinance Bank certified Entrepreneurship Development Institute (EDI).


Step 3: Receive Funds

Loans are paid into the account of beneficiaries. Unqualified candidates are given feedback.


Step 4: Get Business Support Service

The Entrepreneurship Development Institute assists you to implement a business plan and provide business support services commercially.


Step 5: Make Sales

Sell products and services to pay back loans and make a profit.


Step 6: Repay Loan

Run your business, keep proper records, and monitor sales and expenses to maximize profit and pay back the loan.

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2. Anchor Borrowers’ Program

The Anchor borrowers’ program is a Nirsal Microfinance Bank CBN loan that aims at creating and fostering a link between companies that engage in the processing sector and small-scale farmers who deal in essential Agricultural commodities. You can walk into any Nirsal Microfinance Bank branch to apply.

The Anchor Borrowers’ Programme is a Central Bank of Nigeria intervention scheme, that is a single digit Loan, established by the Federal Government, in 2015, to boost the agricultural sector of the economy. It is designed to create an economic linkage between smallholder farmers and agro-processors/Anchors. The programme adopts a value chain approach that links Input to Production to Processing and Market. The scheme is targeted at smallholder farmers to increase their access to quality agricultural inputs and, thereby, improve the quality of products to meet international standards.

The broad objectives of the ABP include:

  • Improve access to finance.
  • Diversify the economy.
  • Create jobs.
  • Inclusive growth.

The Anchor is that corporate entity or Association that presents a request for the funding of a group of smallholder farmers cultivating between 1 to 5 hectares of land who have been identified by him as the source of a certain quantity and quality of products for their processing needs.

This is for entrepreneurs, traders and students to access up to N1m for existing businesses. The interest rate charged by Nirsal on loans is a minimum with the total dependent on the tenor of the loan. Micro lending is the provision of financial services for people who don’t have access to traditional financial services such as banks.

The loans are aimed at individuals who were previously considered “unbankable” by larger banking institutions. These are borrowers who are possibly dealing in small amounts of money each day, living in hard-to-access areas, without credit histories or who don’t meet “traditional requirements” within the banking sector.

There are four models of the Anchor Borrowers’ Program and they represent the channels through which the scheme can be accessed. The models are:

  • The Private Sector Model

Involves Bank, Anchor and Farmers. Banks do input distribution, anchor aggregates and offtakes commodities, while the farmer is the primary obligor. The arrangement is based on a tripartite MoU between Bank, Anchor and Farmer.


  • The Prime Anchor Model

Agro-processors/anchors take full ownership of anchoring the farmers to access the loan and serve as an obligor and off-taker of the commodity produced. They access the funds on behalf of the farmers by providing collateral cover which may be in Landed Property or Cash collateral.

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  • The Commodities Associations Model

The state government acts as a primary obligor and off-taker of the commodity produced by the farmers. The state government provides Irrevocable Standing Payment Order to the PFI to cover 100% of Principal and accrued interest.


  • The Public Sector (State Government) Model

Commodity Association coordinates farmers, while the farmer is the primary obligor. They work with an anchor to off-take.

The Anchor has the prerogative of selecting the commodity that he desires for the processing plant. Commodities such as Cassava, Cotton, Fish, Ground nut, Maize, Poultry, Rice, Soya Beans, Wheat, Cattle, Sorghum, Ginger, Castor Seed, Sesame, Tomato, Cocoa, Oil Palm, Pepper etc. The tenor of the loan is determined by the gestation of the commodity.

Based on the Economics of Production (EoP) of the commodity. The Interest rate is 9% per annum (now 5% per annum to cushion the effect of the Covid19 pandemic). The repayment of the loan is from the produce harvested.


How To Apply For The Anchor Borrower’s Programme In Four Easy Steps.


Step 1: Submit an Expression of Interest (EOI)

The anchor (a company or cooperative/association) writes an Expression of Interest to the Bank to be their PFI (Participating Financial Institution), e.g. Expression of Interest for Nirsal Microfinance Bank to be the PFI in the Maize Farmers Project Under the CBN Anchor Borrowers Programme. When the EOI (Expression of Interest) has been received, we respond to the anchor via email. We request the following:


  • The commodity required.
  • The list of farmers required (numbers, names, BVNs).
  • The processor’s capacity to offtake the produce from the farmers at harvest.
  • The choice of NIRSAL Microfinance Bank as the Participating Financial Institution (PFI) for the project etc.

Step 2: Appraisals

When all documents required have been submitted by the anchor including the title deed to be pledged as collateral, a due diligence search will be conducted by the legal team. If the search report is positive i.e. free from any encumbrances, an independent valuation exercise will be conducted and the legal team provides a checklist for the creation of a legal mortgage which the ABP team forward’s to the anchor. While all this is going on we expect the anchor to be holding town hall meetings, PMT (Project Management Team) meetings, Land Mapping and Land preparation of the farmlands.


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Step 3: Request To The CBN

Fund requests will be made to the Central Bank of Nigeria.


Step 4: Offer Letter and Disbursement

The offer letter is given to the anchor and then execution of the tripartite agreement is done. When the fund has been received from CBN, disbursement begins

3. Nirsal Microfinance Bank Access Target Account

This is a saving scheme that targets micro, small, and medium-scale enterprises and individuals looking to cultivate a healthy saving culture. It usually runs for a specific period for a particular financial purpose. Through this scheme, Nirsal  Microfinance Bank aids its customers in saving for a variety of specific reasons, such as rent, purchase of goods, purchase of equipment, or even for festivities. 

There is a predetermined limit put on the account, meaning they only allow some limited withdrawals by the account holder based on pre-agreed instructions. The Access Target account has an opening balance of ₦1,000 with a minimum balance of ₦500.


Requirements For Nirsal Microfinance Bank Loan Application


The following are the documents and credentials required to access a Nirsal Microfinance Bank loan.

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  • Letter of employment
  • Staff identity card
  • Pay slip
  • 6 months statement of account
  • Other forms of identification (National Identity card, international passport, etc)
  • Utility bill
  • 2 passport photographs
  • Guarantor form
  • 6 months other bank account statement.
  • Letter of confirmation of appointment/employment.
  • Direct debit will be placed on the customer’s account.
  • Execution of dud cheque indemnity form.


  • They have a wide range of loan offerings.
  • Their rates are competitive.


  • Extensive paperwork to access larger loans.
  • Guarantor required for some loans.
  • Recipients must attend compulsory training.


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