TIES loan

Loan

How to receive TIES loan in Nigeria

TIES loan – Are you a graduate of a Nigerian Polytechnic or University with entrepreneurial skills for entrepreneurship development, economic development and job creation, if this feels like you, then I have a piece of a good news for you.

As you are aware, unemployment has continued the rock the boat of economic and personal well being of the Nigerian graduates, it’s no news that the national ivory towers produce teaming graduates annually who are either under employed or unemployed entirely.

It’s on this reason that the Central Bank of Nigeria looks to boost economic growth and reduce unemployment among graduates of Nigerian Polytechnics and Universities through the introduction of the TIES loan/scheme.

What is TIES loan

TIES loan is a credit granted to Nigerian gradates, TIES stands for “Tertiary Institutions Entrepreneurship Scheme,” designed to deviate the attention of Nigerian graduates from the white collar jobs to a culture of entrepreneurship where they can create job, stimulate the economy, as well as sustain its development.

The CBN developed the TIES in partnership with Universities and Polytechnics to further discover the potential of Nigerian graduate entrepreneurs through re-orientation, training and innovative financing model that will drive the transformation on the economy.

Why CBN designed the TIES

1. To provide an enabling environment, for creation, mentorship and development of entrepreneurial and technological innovations for value creation in alliance with the Nigerian tertiary institutions  towards job creation and economic advancement.

2. To fast track idea concept, creation and acceleration of innovation-driven entrepreneurship skills among graduates.

3. To promote gender balance in entrepreneurship development through capacity development and improved accessed to finance.

4. This looks to boost contribution of non-oil sector to nation’s GDP

Eligible entrepreneurship ideas to benefit from TIES loan

1. Agribusiness – production, processing, storage and logistics.

2. Information technology – application/software development, business process outsourcing, robotics, and data management.

3. Creative industry – entertainment, artwork, publishing, culinary/event management, fashion, photography, beauty/cosmetics

4. Science and technology – medical innovation, robotics and ticketing.

The TIES loan will be implemented through three components

Term loan: This will be typical business loan, only graduates that have undergone entrepreneurship training shall be eligible to participate under this component.

Sole Proprietorship: This category involves businesses, limited liability companies, and small companies as defined by CAMA.

Loan limit is N5 million, with a tenor of 5 years

Small company enterprise: This could involve partnership businesses registered either as limited liability companies, and small companies as defined by CAMA.

Loan limit is N25 million, with a tenor of 5 years.

Who can apply for this loan?

TIES loan is available for graduates of Nigerian Polytechnics and Universities. This implies such graduate must have necessary academic documents as evidence like the NYSC certificate, academic certificate, etc.

CBN TIES loan Requirements/documents

For a possible consideration of this loan, you will need the below documents

1. Make available your first degree certificate in the category of B.sc or HND.

2. National Youth Service Certificate (NYSC)

3. You must have a certificate of participation your school issued which serves as your proof of entrepreneurship training.

4. Statement of income, statement of affairs, cash flow projection where necessary for start-ups and businesses with not more than 3 years of operations.

5. Business plan showing details, financials, as well as other economic advantages of the projects.

What is the maximum loan limit?

The tier one Sole proprietorship has a loan limit of N5 million with a 5 years tenor.

While the tier 2 small company enterprise has a loan limit of N25 million with a 5 years tenor.

Interest rate for TIES

The interest rate for graduates accessing the TIES is 5% through to February 2023, it will be reviewed upward to 9% from March 2023.

How can I apply for TIES loan?

1. Kindly follow the this link cbnties.com.ng

2. Click on “Apply now,” go through the guidelines and proceed.

3. Enter your details as seen on the application page, validate your application and submit your application. Having completed this you will need to wait for a response as regards your loan application.

TIES loan application

The application is done on the cbnties.com.ng portal, where you are required to enter your details and validate your loan application.

Frequently asked questions

Can I apply as an undergraduate?

No, the scheme is for graduates of Nigerian Universities and Polytechnics that successfully completed their NYSC, and have collected their discharge or Certificate.

What is CBN TIES all about?

The CBN TIES is a scheme developed by the Central Bank of Nigeria to address rising youth unemployment and underemployment, through this scheme, graduates of the Nigerian Universities and Polytechnics are aimed with financing to go into entrepreneurship, as well as drift their attention from the white collar jobs.

What is the deadline for CBN TIES?

Investment made shall be for a period of 10 years, not exceeding December 31, 2031.

How do I register?

Apply online via the designated online portal, where you are required to provide basic information and documents such as; First degree and NYSC discharge, or exemption certificate, valid mobile phone number linked to your NIN, BVN, TIN and email address, evidence of business registration.

Conclusion

The CBN TIES is only targeted at Nigerian graduates with their first degree certificate and NYSC discharge certificate/exemption. It has a maximum tenor of 5 years, and interest rate of 5% till February 2022, however, from March 2022 it goes to 9%.

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