How to Apply for FG’s N2 Million Loan for Caterers, Corps Members, Mechanics, Fashion Designers, Others

• The Federal Government has opened applications for the YOUTHCRED for Entrepreneurs programme, offering loans of N200,000 to N2 million to young business owners aged 18 to 35.

Here’s everything you need to know about eligibility, requirements and how to apply.

The Federal Government has launched the YOUTHCRED for Entrepreneurs initiative, a new loan programme designed to provide affordable financing for young business owners across Nigeria.

The scheme, unveiled in Abuja on Wednesday, will provide loans ranging from N200,000 to N2 million to eligible entrepreneurs aged 18 to 35 who want to start, sustain or expand their businesses.

According to the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, the initiative aims to bridge the financing gap facing young entrepreneurs who are often unable to secure conventional bank loans due to collateral requirements.

Who Can Apply?

To qualify for the YOUTHCRED loan, applicants must:

• Be between 18 and 35 years old
• Own or operate a business
• Demonstrate responsible credit behaviour
• Show evidence of business cash flow and the ability to repay the loan

Loan Amount

Eligible applicants can access:

• Minimum loan: N200,000
• Maximum loan: N2 million

How to Apply

Prospective applicants can apply by:

• Visiting the YOUTHCRED application portal
• Completing the online application form
• Providing the required personal and business information
• Undergoing a verification and credit assessment process

Applications will be processed through participating regulated financial institutions under the YOUTHCRED programme.

Repayment Period

Successful applicants can choose flexible repayment plans ranging from one month to 12 months, depending on their financial capacity.

Is Collateral Required?

No.

Applicants do not need collateral or guarantors to qualify for the loan.

Instead, loan approvals will be based on:

• Credit behaviour
• Business cash flow
• Repayment capacity

Who Can Benefit?

The programme targets young entrepreneurs across different sectors, including:

• Caterers
• Makeup artists
• Fashion designers and tailors
• Ride-hailing drivers
• Content creators
• Mechanics
• Young farmers
• National Youth Service Corps (NYSC) members
• Other micro and small business owners

How to Increase Your Loan Limit

Borrowers can qualify for higher loan amounts by:

• Repaying previous loans on time
• Building a positive credit history
• Completing the platform’s financial literacy and training modules

Speaking at the launch, Finance Minister Taiwo Oyedele said the programme was created because over 90 per cent of Nigeria’s micro, small and medium-sized enterprises (MSMEs) are built around individuals who often lack access to traditional financing.

He noted that the initiative would enable young Nigerians to grow their businesses without the burden of collateral and other conventional lending requirements.

Also speaking, the Managing Director and Chief Executive Officer of the Nigerian Consumer Credit Corporation (CREDICORP), Uzoma Nwagba, disclosed that the government plans to expand the programme to 500,000 beneficiaries initially and eventually reach one million young Nigerians before the end of the year.

He urged beneficiaries to repay their loans promptly to ensure more entrepreneurs can benefit from the scheme.