Diamond Bank : CBN APPROVES AGSMEIS LOAN FOR DIAMOND BANK’S BENEFICIARIES

This initiative requires all Deposit Money Banks (DMBs) to set aside 5% of their annual profit after tax (PAT) and as at Dec. 2017, about N26bn has been accrued from all DMBs for the scheme, with Diamond Bank contributing N141m to the pool. This fund is expected to increase to about N60bn by June 2018, following remittance of DMBs 2017 5% PAT to the pool.

The scheme is divided into three (3) broad categories;

1. Developmental Component - to be utilised to administer the program by CBN
2. Indirect Component - to be disbursed either as equity through fund managers
3. Direct Component - to be disbursed as debt to customers through DMBs

The Developmental Component constitutes 5% of the fund. CBN will apply this fund for capacity building, technical assistance to MSMEs and cover operational costs of managing the scheme.

The Indirect Component constitutes 45% of the fund. This fund is to be applied as equity and shall be managed by Fund Managers. Applications are submitted through PFIs to Project Monitoring Committee (PMC), who recommends request for further approval by the appointed Board of Trustees (BoT). Upon approval by BoT, CBN disburses fund as applicable. PFI's do not directly benefit from the scheme (except in terms of float, where applicable) and there is no risk to bear as fund is managed by Fund Managers.

The Direct Component constitutes 50% of the fund and this is to be disbursed as loans to eligible MSMEs through Participating Financial Institutions (PFIs). CBN has commenced disbursement under this component, with the flag off ceremony which held in Abuja on 12^th April 2018.

AGSMEIS is sector agnostic and the fund can be accessed for start-up businesses, business expansion or revival of ailing companies in sectors such as;

• Agricultural Sector; covering agricultural value chain activities such as production, inputs supply, storage, processing, logistics and marketing.
• Real Sector; including manufacturing, mining and petrochemicals.
• Service Sector; including Information and Communication Technology (ICT), beauty and the creative industry.
• Other activities as the Central Bank of Nigeria (CBN) may determine from time to time

APPLICATION PROCESS

Applicants are expected to be trained and certified by any of the CBN approved Entrepreneurial Development Centres e.g. Lagos Business School, House of Tara, Fate Foundation, Thrive Agric etc to access the loan.

For more information on the AGSMEIS, visit any Diamond Bank, call our 24-hour Contact Centre on 07003000000, or send an email to enquiries@diamondbank.com.