In a bid to starve of the increasing unemployment rate in the country, the National Youth Service Corps (NYSC) have, in partnership with the Bank of Industry (BOI) created a N2.0 billion fund for lending to Nigerian young graduates in their one year mandatory NYSC program.
The Fund is called Graduate Entrepreneurship Fund (GEF) scheme which is BOIs first youth programme launched in October, 2015.
The aim is to change the job-seeking mindset of Nigerian youths to entrepreneurship and self-reliance by encouraging them to develop skills for self-employment and to contribute to the accelerated growth of the national economy.
The Fund was birthed to change the mindsets of Nigerian youths to self-reliance by encouraging them to develop skills for self-employment and contribute to the growth of the economy.
How applicants are selected
The loan facility is available to serving NYSC members that have successfully passed through the following stages:
Screening process to ascertain their suitability for the loan.
Attend the capacity building program developed specifically for the prospects under GEF.
Submit a bankable business plan in respect of any of the banks identified 40 SME clusters. The clusters are listed on the banks website; applicants must have a detailed business plan showing details of cash-flow and expected returns.
How to start the process
Applicants must participate in the online business plan competition (which is available on the bank’s website) where the most promising business ideas are selected from the list.
A 3-day intensive entrepreneurship capacity building program is organized by the bank to equip successful applicants with skills and increase their capacities. Location for the training is spread across the 6 geo-political zones of the country.
At the end of the program, successful applicants with lucrative business ideas will be provided with a loan facility of N2million with tenors ranging from 3-5 years inclusiveof 6-12 months moratorium period.
Documents applicants must present
1. Undertaking by the NYSC directorate not to release the discharge certificate until the loan is liquidated.
2. 1 external guarantor acceptable to BOI who must belong to any of the following categories:
I. Senior Civil Servants (level 7 and above).
II. Bankers (not below the level of banking officer) who must have been confirmed by current employers
III. Professionals: medical doctors, lawyers, accountants, engineers, etc.
IV. Senior staff of reputable quoted companies or international oil companies.
V. Clergymen.
The guarantees must be supported with a notarized statement of net worth acceptable to BOI.
Are you a young graduate who is currently participating in the NYSC Scheme, with business ideas and a strong passion to become an entrepreneur?