Young entrepreneurs across Nigeria can now access business loans of up to N2 million under the Federal Government’s newly introduced YouthCred for Entrepreneurs programme, an initiative aimed at expanding access to affordable credit for small businesses without the traditional collateral requirements.
The scheme, unveiled in Abuja, is targeted at addressing one of the biggest challenges facing young business owners by offering loans ranging from N200,000 to N2 million to about 500,000 entrepreneurs in its first phase.
According to the guidelines, applicants must be between the ages of 18 and 39, own or operate a business, maintain a good credit record and demonstrate that their enterprise generates sufficient income to support loan repayment.
The amount approved for each successful applicant will depend on factors including business cash flow, repayment capacity and overall credit history, with loans starting from N200,000 and capped at N2 million.
To apply, interested applicants are required to visit the YouthCred website, complete the online application form, provide the necessary personal and business information and undergo the programme’s verification process.
Applications will be processed through financial institutions participating in the YouthCred initiative after the verification stage has been completed.
One of the key features of the programme is that beneficiaries are not required to provide collateral or guarantors before accessing the facility.
Instead, approval will be determined by an applicant’s repayment ability, credit profile and the financial performance of the business.
Successful applicants can choose repayment periods ranging from one month to 12 months, allowing borrowers to select a schedule that best suits their business operations.
The programme is open to a broad range of young entrepreneurs, including caterers, make-up artists, fashion designers, tailors, ride-hailing drivers, content creators, mechanics, farmers, National Youth Service Corps members and other owners of micro and small businesses.
The government also stated that beneficiaries who repay their loans as agreed will become eligible for larger facilities in future, while maintaining a positive credit record and completing the financial literacy training available on the platform will further improve their chances of accessing higher loan amounts.
Speaking during the launch, the minister of finance and coordinating minister of the economy, Taiwo Oyedele, said the initiative was created to improve access to affordable financing for young entrepreneurs.
“You may want to ask why the focus on entrepreneurs? That’s because more than 90 per cent of Nigeria’s MSMEs are micro enterprises built around individuals, from the tailor to the ride-hailing driver, the fashion designer, the caterer, content creator, the mechanic and the young farmer,” Oyedele said.
He added that the programme was designed to enable young Nigerians expand their businesses without facing the stringent lending conditions commonly associated with commercial banks.
The managing director and chief executive officer of the Nigerian Consumer Credit Corporation, Uzoma Nwagba, said the government intends to support about 500,000 beneficiaries during the first phase before increasing the target to one million before the end of the year.
Nwagba also urged beneficiaries to repay their loans promptly to ensure that more young entrepreneurs can benefit from the initiative as the programme expands.
