Guaranty Trust Bank The Creative Industry Financing Initiative

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Guaranty Trust Bank The Creative Industry Financing Initiative

The Central Bank of Nigeria (CBN), in collaboration with the Banker’s committee, has introduced the Creative Industry Financing Initiative (CIFI) to improve access to long-term low-cost financing for entrepreneurs and investors in the Nigerian creative and information technology (IT) sub-sector, as part of efforts to boost job creation in Nigeria, particularly among the youth.

Entrepreneurs in fashion, music, movie production and information technology can now get long-term low-interest loans up to N500m (interest rate of 9% over a 3-10 year period), guaranteed by the Central Bank of Nigeria (CBN), for their business. Designed to support entrepreneurs in the creative industry and stimulate economic growth, the Creative Industry Financing is available at Guaranty Trust Bank.

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Benefits

Improve access to low-cost and sustainable financing by entrepreneurs and investors in the Nigerian creative and information technology (IT) sub sectors.
Boost job creation, particularly among the youth
Harness the entrepreneurial potentials of youths within the Nigerian Creative and information technology (IT) sub sectors for economic development
Complement other development finance initiatives of the CBN to accelerate financial inclusion

What’s in it for You

Up to N500 Million for your creative business.
Low Interest of 9% per annum
Flexible repayment plan spread over 10 years

Who Can Apply

Entrepreneurs in the following creative industry:

Fashion (Designers)
Music (Music Production & Distribution)
Movie (Movie Production & Distribution)
Information Technology (Information Technology & Student Software Development Loan)

How to Apply

Send an email with your business proposal and all other supporting documents for your initiative.

Eligibility

Your business is duly registered with Corporate Affairs Commission
Your Business Proposal
Business must have a clean Credit Bureau Report with no unpaid obligations.
Business must be among the creative industry
Business must have a satisfactory CRMS report of owners, sponsors and directors.

Features

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Software Development and Movie

Features	Student Software Development Loan	Movie Production	Movie Distribution
Single Obligor Limit	N3million	N50million	N500million
Interest Rate	9% per annum	9% per annum	9% per annum
Tenor	3 years	10 years	10 years
Moratorium	9 months from date of disbursement	24 months from date of disbursement	24 months from date of disbursement
Repayment	Monthly	Quarterly	Quarterly
Security Arrangement	Minimum Equality Contribution (0%), University Degree, NYSC Certificate, Credible Guarantor, Personal Guarantee	Minimum Equality Contribution (30%), Legal Mortgage, All asset debenture, Credible Guarantor, Personal Guarantee	Minimum Equality Contribution (30%), Legal Mortgage, All asset debenture, Credible Guarantor, Personal Guarantee
Other Conditions	Must gain admission into a training organisation that has job placement contracts. No bad credit history with CRMS or any commercial bank in Nigeria bank. Preference for areas with low IT penetration	Minimum of 3 years relevant experience. No bad credit history with CRMS or any commercial bank in Nigeria bank. Preference for areas with low cinema penetration.	Minimum of 3 years relevant experience. No bad credit history with CRMS or any commercial bank in Nigeria bank. Preference for areas with low cinema penetration.
Funding Structure	Minimum Equity Contribution (0%). DMB (Term Loan) – 100%	Minimum Equity Contribution (30%). DMB (Term Loan) – 70%	Minimum Equity Contribution (30%). DMB (Term Loan) – 70%

Fashion, Information Technology (IT) and Music

Features	Fashion	Information Technology	Music
Monetization	Equipment Purchase, Rental/Service fees	Equipment Purchase, Rental/Service fees	Equipment Purchase, Rental/Service fees
Interest Rate	9%	9%	9%
Tenor	10 years	10 years	10 years
Moratorium	36 months from date of loan disbursement	36 months from date of loan disbursement	36 months from date of loan disbursement
Repayment	Quarterly	Quarterly	Quarterly
Security Arrangement	Minimum Equity Contribution (20%), Mortgage Debenture, Legal Mortgage, Lien on stock of trade and items of equipment.	Minimum Equity Contribution (20%), Mortgage Debenture, Legal Mortgage, Lien on stock of trade and items of equipment.	Minimum Equity Contribution (20%), Mortgage Debenture, Legal Mortgage, Lien on stock of trade and items of equipment.
Other Conditions	At least three (3) referrals from recognised sponsors or bodies or organisation, Minimum of three years (3) relevant experience, No bad credit history with CRMS or any commercial bank in Nigeria.	At least three (3) referrals from recognised sponsors or bodies or organisation, Minimum of three years (3) relevant experience, No bad credit history with CRMS or any commercial bank in Nigeria.	At least three (3) referrals from recognised sponsors or bodies or organisation, Minimum of three years (3) relevant experience, No bad credit history with CRMS or any commercial bank in Nigeria.
Funding Structure	Minimum Equity Contribution (20%). DMB (Term Loan) – 80%	Minimum Equity Contribution (20%). DMB (Term Loan) – 80%	Minimum Equity Contribution (20%). DMB (Term Loan) – 80%

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