TIES Loan: How To Apply, Requirement, Closing Date

The Central Bank of Nigeria (CBN) has announced the Tertiary Institutions Entrepreneurship Scheme TIES loan that will allow graduates and undergraduates to obtain loans.

Is it true that CBN is giving loans?

Yes, the CBN is giving TIES loans whose primary goal is to facilitate the opportunity to access capital for Nigerian students and graduates with creative entrepreneurial and technological concepts from universities and polytechnics.

TIES loans will help steer students and graduates away from traditional white-collar jobs and toward developing an entrepreneurial culture for employment and economic growth creation.

Are you eligible to receive a TIES loan?

Only applicants from the Nigerian college or polytechnic are eligible. In addition, preference is given to new entrepreneurial initiatives with great potential to export, create jobs, and have a transformative impact.

The below documents will prove your eligibility.

• First-degree certification (BSc/HNDor its equivalent)
• National Youth Service Certificate (NYSC) discharge or exemption certificate
• A Certificate of Participation from polytechnics or universities that demonstrate entrepreneurship education; and
• At most seven years after NYSC.

How do I apply for a Ties loan?

Students studying at the undergraduate level could apply for grants via the development component of the Scheme.

The Developmental Component would be distributed as prizes to Nigerian universities and polytechnics in a biannual national entrepreneurship competition.

ties loan

The competition aims to increase undergraduates’ awareness and visibility of high-impact entrepreneurial/technological concepts, foster entrepreneurial talent hunts in Nigerian polytechnics and universities, and encourage commercially viable and transformative technologies.

Interested Nigerian polytechnics and universities shall apply to participate in the national biennial entrepreneurship competition on a dedicated online portal (https://cbnties.com.ng), outlining brief details of the project, potential impact, and evidence of originality of the project;

How does it work

For the biennial national and regional competitions in entrepreneurship for the biennial contests, the CBN will select the Body of Experts (BoE) comprised of representatives from both sectors to evaluate the technological and entrepreneurial ideas submitted by Nigerians.

The BoE will evaluate the applications submitted through competitions where students compete in pitching entrepreneurial and tech innovation at regional scales. Finalists go on to the national stage for final review and evaluation in the BoE.

The showcasing programming will be broadcast on social media and national TV stations over 4 (4) weeks to highlight the advantages of entrepreneurship and influence opinions and perceptions of society regarding it.

Based on the recommendations of the BoE on the request of the BoE, the grant will go to the five most outstanding (5) technological and entrepreneurial innovations on a national scale. It will be distributed via 55:45 ratio tranches to a particular account set up to receive this grant through Nigerian universities and polytechnics, subject to the approval of milestones.

What are the steps to apply for

Nigerian universities and polytechnic graduates shall be eligible for participation under the term loan component of TIES.

A Term Loan component comprises two tires designed for both businesses and individuals.

Tier 1/ Individual projects

The maximum loan amount for the above category amounts to N5.0 million, with a repayment time of 5 years. The current interest rate for the loan is 5 percent per annum. However, it will rise to 9% by March 1st, 2022. Additionally, the loan has 12 months to pay the principal and interest.

Documentation Collateral Requirements:

The applicant must be a business entity registered with the Corporate Affairs Commission (CAC) and authentically certified duplicates (CTC) of all submitted documents.

• Bank Verification Number (BVN);
• The First-degree certification (BSc/HND or equivalent);
• National Youth Service Certificate (NYSC) exempt or discharge certificate; and
• A Certificate of Participation from polytechnics and universities to demonstrate that they have received entrepreneurship training.

Collateral Requirements

• Then, if signed, you will receive a Global Standing Instruction (GSI) as well as
• Third-party guarantee issued by an upper federal or state civil public employee (not lower than level 10 and not with less than five years before retiring from service) and clergy of note and respectability or a known traditional ruler.

Level 2 Partnership or Company projects

The maximum loan amount for business plans is N25.0 million with a term of five years. The current interest rate is 5% annually but is expected to increase to 9% by March 1st, 2022. Furthermore, the loan has a maximum of 12 months of interest and a principal moratorium.

Documentation Collateral Requirements

The partnership or company must be registered as a company through the Corporate Affairs Commission (CAC) and authentic certified duplicates (CTC) of the submitted relevant forms.

Every partner or company is required to provide the following:

• Bank Verification Number (BVN)
• First-degree certification (BSc/HND or equivalent)
• National Youth Service Certificate (NYSC) certificate of discharge or exemption
• The Certificate of Participation is issued by Polytechnics and universities that demonstrate entrepreneurship education.

Collateral Requirements Requirements

• An affidavit signed by Global Standing Instruction (GSI) by an individual member of the partnership or company;
• Third-party guarantee issued by an experienced federal or state civil or public employee (not less than level 10 or not with less than five years before retiring from service) or clergy with a notable name and reputation or an acknowledged traditional ruler.

Award of Grants

Five (5) best Nigerian polytechnics, as well as universities that present the most innovative ideas and pitches for entrepreneurship, will be awarded the following:

• First spot 1st place N150.0 million
• Second place, N120.0 million
• Third spot 3rd place N100.0 million
• Fourth spot fourth place N80.0 million And
• Fifth position Fifth place N50.0 million.

The grants will be distributed in these areas:

1. Agribusiness Processing, production, storage, and logistics
2. The field of information technology Software and application development outsourcing business processes to businesses robots and data management
3. The creative industry Entertainment, artwork publication, food/event management, fashion and beauty/cosmetics, photography;
4. Sciences and Technology Medical innovation robots, ticketing systems, robotics traffic systems recycling, renewable energy, waste management, and
5. Any other activities that the CBN may decide from time to time.

It is important to note that the Scheme will be in operation for ten years in the initial instance (not more than December 31st, 2031), dependent on the difficulty of the Scheme.