CBN Creative Industry Financing Initiative (CIFI) | Apply Now

CBN Creative Sector Loan

The CBN Creative Sector Loan

The creative sector loan is a Central Bank of Nigeria initiative aimed at capacity building and employment creation for individuals and businesses currently into any of the following:

  • Fashion
  • Information Technology
  • Movie Production
  • Movie Distribution
  • Music
  • Software Engineering Student Loan
Requirements
  • Low cost-single digit funding for your business
  • Flexible structure and repayment plans
  • Opportunity to achieve your long-term business goals
  • Excellent financial advisory service
How it works
  • Prepare your business plan or statement on how much you want for your business.
  • Go to any Financial and lending Institution subscribed with CBN.
  • The Relationship officers will contact you for further discussion and process your loan request.
  • The maximum interest rate of 9% per annum (all charges inclusive) is applicable on all loans.
  • The repayment period is a maximum of:
  • 3 years for Software Engineering Student Loans
  • 10 years for Movie Production & Distribution, Fashion, Information Technology and Music


S/N

QUESTIONS

ANSWERS

1.

What is CIFI?

CIFI stands for Creative Industry Finance Initiative. The loan is availed by the Banker’s Committee and facilitated by the CBN.

2.

What is the aim of the fund?

To provide long term financing for entrepreneurs and investors in the creative and IT sub sectors.

3.

What activities does CIFI covers?

Eligibility activities under the initiative are:

  • Existing enterprises in the creative industry
  • Start-ups engaged in the creative industry
  • Students of higher institutions engaged in software development.

4.

Which sectors can apply?

Players in the following sectors can apply:

Category

Verticals

Target Market

 

A.

Information Technology

Student software development loan

Movie

Movie Production

Movie Distribution

 

B.

Fashion

Designers

Information Technology

Information Technology

Music

Music Production (Musicians); Distribution

5.

What are the key operational features of CIFI?

The features of the fund are as shown in the table below:


Target Market

Single Amount Obligor (NGN)

Max. Tenor (years)

Moratorium period (months)

Repayment Structure

Software Development (for Students)

3 million

3

9

Monthly

Movie Production

50 million

10

24

Quarterly

Movie Distribution

500 million

10

24

Monthly

Fashion

Equipment purchase and Rental/service fees

10

36

Quarterly

Information Technology

10

36

Quarterly

Music

10

36

Quarterly

6.

What is the interest rate?

9% per annum (all inclusive)

7.

Do we require any security from the customer?

Yes, the following will be required:

  • Minimum equity contribution of 20%- 30% except Student Software Development loan.
  • University Degree and NYSC certificate (applicable to Student Software development loan)
  • Credible Guarantor (applicable to category A only)
  • Personal Guarantee (applicable to category A only)
  • Legal Mortgage
  • All asset debenture
  • Mortgage debenture (applicable to category B only)
  • Lien on stock of trade and items of equipment (applicable to Category B only).

8.

Any other conditions

Yes

  • Admission into a training organisation with job placement contracts (for Student development loan).
  • Preference for areas with low penetration.
  • Minimum of three (3) years relevant experience.
  • No bad credit history with CRMS or any commercial banks.
  • Minimum of three (3) referrals from recognised sponsors or bodies or associations (applicable for Category B only).

9

Disbursement process

It will be in phases in accordance with agreed milestones.

File Name: Modalities for Creative Finance Finding Implementation Document from the CBN
File Size: 341 kb
Download File

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