Can Entrepreneurs Apply for NELFUND Student Loan? -

NELFUND is a student loan which specifically targets undergraduate Nigerian students for them to pay tuition fees and upkeep allowances.

However, there are thousands of undergraduates with entrepreneurial spirit whose skills belong either food services, ICT, traders, creatives, artisans, and transportation. If you are an entrepreneur and belong to any of the aforementioned sectors, you can access the federal grants and loans programme – government-backed credit facilities – specifically targeted business owners like you.

Agencies such as Bank of Industry (BOI), SMEDA, and other agencies under the Federal Ministry of Trade and Investment outlines its loan facilities including the requirement to qualify for one.

In June 2024, for instance, the Minister of Finance, Wale Edun, disclosed that the government is offering businesses loans up to N1 billion.

The initiative allows small-scale entrepreneurs to access up to 1 Million while larger businesses can get up to N1bn.

The beauty of the government-backed loan is that it is 9% interest rate, cheaper than commercial banks, which is at 26.25 % interest rate.

Any Nigerian is eligible for the government’s N1, 000, 000 loan as long as you meet the following eligibility criteria:

Your business must be operation for at least for one year
Must have a National Identification Number (NIN)
Your business has evidence of business registration from the Corporate Affairs Commission (CAC).
Evidence of your business’ bank statement for a period of one year.

You can begin the application application process by first registering on federal government portal at: loan.fedgrantandloan.gov.ng/auth/loan-register

As for the NANO loan, you might need the above stringent criteria. But you must know that your type of business will determine the requirements.

For instance, if you produce consumables, you may also need to provide evidence of registration with agencies such as the National Agency for Food and Drug Administration and Control (NAFDAC), the Nigerian Export Promotion Council (NEPC) if you products are designed for export and the Standards Organization of Nigeria (SON) if you import your products.

Conclusion

Yes an entrepreneur student can apply for NELFUND loan, however, your request for another government loan such as BOI, SMEDAN or NANO business loan may not be approved if you already have a pending government loan you are yet to pay back. It is better to choose based on the one that meets your present needs: is it business loan or student loan?

Opeyemi Quadri

Ope is a seasoned content creation specialist and researcher with over a decade of experience writing on education, student aid, and government policies. He is deeply passionate about education-related data.

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