Graduate Entrepreneurship Fund Loan – Apply Now

Graduate Entrepreneurship Fund Loan is now open for application from eligible applicants. The Graduate Entrepreneurship Fund Loan (GEF) scheme is BOI’s first youth programme with an initiative specifically targeted at youths.

Are you a youth in search of business fund? Just like the TIES Program, the GEF Loan is recommended for you.

What Is The Aim OF Graduate Entrepreneurship Fund Loan

The aim The Graduate Entrepreneurship Fund Loan is to change the job-seekers mindset of Nigerian youths to entrepreneurship and self-reliance by encouraging them to develop their skills for self-employment and to contribute to the growth of the national economy.

Hence the introduction of the Graduate Entrepreneurship Fund programme to address the worrisome phenomenon of unemployment and restiveness.

Objectives of GEF

The Graduate Entrepreneurship Fund Loan (GEF) is a product with the following objectives:

1. To encourage graduates of tertiary institutions currently undergoing the compulsory one-year NYSC programme, to venture into business and become employers of labour rather than job-seekers.
2. To deepen financial inclusion by de-risking the NYSC members and making them eligible for small business loans to be provided by BOI.
3. To address the entrepreneurship capacity gap of the young NYSC members.
4. Ensure sustainability of the business of the young graduates through effective monitoring of the corps members by the NYSC Directorate and BOI.

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Components of the Graduate Entrepreneurship Fund Loan

The Graduate Entrepreneurship Fund Loan Programme comprises the following:

Capacity building Process through the following:

1. Selection/screening of the NYSC members that will participate in the capacity building process through questionnaire to be administered on BOI online portal.
2. Four days intensive training on generating a business idea (value proposition), how to run a profitable business (Business Model) and basic financial record keeping. This will be done in collaboration with the NYSC Directorate and shall be facilitated by BOI’s partner Entrepreneurship Development Centers/Institutions in the 36 states of the federation, including the Federal Capital Territory (FCT).
3. Financial support for those with bankable business ideas within BOI’s SME clusters.

Rationale Of BOI GEF Loan

The scheme is a special fund to encourage young Nigerian graduates of tertiary institutions who are currently serving under the NYSC programme to start up new businesses as well as expansion of existing ones.

Target Market/Criteria

This program will be available to serving NYSC members that have successfully passed through the following stages:

1. Screening process
2. Attended the capacity building programme developed specifically for the prospects under GEF
3. Submitted a bankable business plans in respect of any of the Bank’s identified 40 SME clusters

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Projected Impact of Graduate Entrepreneurship Fund Loan

The Graduate Entrepreneurship Fund Loan shall be deployed to support the establishment and/or expansion of an estimated 1,000 enterprises promoted by NYSC members across the country. The scheme is expected to create a minimum of 5,000 direct jobs and 25,000 indirect jobs annually, totaling 30,000 jobs.

Overview Of The Entrepreneurship Fund
Program Limit	NGN2 billion in the first year. Single Obligor Limit is up to NGN2million
Working Capital:	50% of loan amount, to be disbursed after successful installation and testing of the equipment.
Pricing/Interest Rate:	Nill (0%), effective from date of disbursement.
Tenor	3 – 5 years.
Moratorium	Six months from date of Loan Disbursement.

GEF Security

Security for the facility will be combination of:

1. Specific charge over the equipment (present and future).
2. Lien on the NYSC discharge certificate
3. Undertaking by the NYSC Directorate not to release the discharge certificate until the loan is liquidated.
4. One (1) external guarantor acceptable to BOI who must belong to any of the following categories:
   1. Senior Civil Servant (Level 7 and above).
   2. Bankers (not below the level of banking Officer) and must have been confirmed by current employer.
   3. Professionals i.e. Medical Doctors, Lawyers, Accountants, Engineers, etc.
   4. Senior Staff of reputable quoted Companies, International Oil Companies, Telecommunications Companies (GSM providers).
   5. Elected public servants/administrators
   6. Reputable entrepreneurs with on-going entities and registered business names.
   7. Clergy men.
5. The guarantees must be supported with a Notarized Statement of Net worth acceptable to BOI.

Funding Structure Of The Program

1. Purchase of assets for business: Machinery and equipment.
2. Up to 100% of the investment need and or Working Capital:
3. Purchase of raw materials, operational cost, leases/ rentals of premises, renovation, insurance of assets and utility bill (for first three months of operation).
4. Up to 50% of the working capital need.

Disbursement Of GEF Loan

Term Loan:

50% advance payment to equipment suppliers and payment of the balance only after satisfactory delivery and installation of the equipment. RMD to issue a letter of undertaking for the payment of the balance.

However, full cash payment can be made in advance where items of equipment are to be bought from the likes of Cash n Carry, Shoprite, Jumia etc.

Working Capital:

50% of loan amount, to be disbursed after successful installation and testing of the equipment.

How To Apply For GEF

1. Visit the official webpage
2. Go through eligibility criteria
3. Click on the GEF application link to apply

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