The Central Bank of
The CBN has issued a circular in which it says the tenure of the scheme has been extended to 2025, and the guidelines for its operations have been revised.
Earlier, loans received under the scheme must be paid back within seven years.
The CBN under the amended guidelines has eliminated this limit, and said loan repayment period would be decided by the gestation period of the agricultural project being funded.
The guidelines said : "Loans shall have a maximum tenure based on the gestation period of the enterprise plus three years cash flow allowance and /or working capital facility of one year with provision for roll over. The scheme allows for moratorium in the loan repayment schedule taking into consideration, the gestation period of the enterprise."
In response to yearnings for long-term loan to farmers at low interest rate, the central bank had introduced the Commercial Agricultural Credit Scheme (CACS) in 2009.
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