How To Get NMFB Or NIRSAL Loan For Your Pet Business

If you need to turn that brilliant pet business idea into a reality, there's a good news for you.

The Nigerian government through NIRSAL is giving low-interest loans and even grants to small businesses in the country.

This is a great way of supporting entrepreneurs like you who may find it difficult to raise fat wad of cash.

So, what does that mean for you? It means that you can actually have a strong chance of securing some of that free government money for your pet or agriculture-related businesses.

But how on earth are you going to get this NIRSAL loan? Before you can get a NIRSAL loan, you need to understand what it's all about. So, in this post, I'm going to show you how to get NIRSAL loan and help you understand everything about NIRSAL loan, but let us begin with the definition of NIRSAL.

What Is NIRSAL?

NIRSAL is an acronym for Nigeria Incentive-Based Risk Sharing System for Agricultural Lending. 

Many entrepreneurs lack clear knowledge of this type of funding, but when it comes to getting loan for your pet business, you should either consider NIRSAL loans or NIRSAL Microfinance Bank (NMFB) loans. So, what is the difference between the two?

NIRSAL PLC Vs. NIRSAL Microfinance Bank (NMFB): What's the Difference?

NIRSAL PLC and NMFB are two financial institutions in Nigeria. But when you compare NIRSAL PLC vs. NMFB, you'll find that they have both similarities that overlap and differences that separate them.

NIRSAL PLC vs. NMFB: The Similarities

What NIRSAL PLC and NMFB have in common is that they both help in either redefining, dimensioning, measuring, re-pricing and sharing agribusiness-related credit risks in Nigeria.

They're both owned in part by the Nigerian bankers' committee.

NIRSAL PLC vs. NMFB: The Differences

NIRSAL (PLC) was established in 2013 whereas, NMFB was incorporated as a Private Limited Company in 2019.

NIRSAL PLC is a $500 million Non-Bank Financial Institution wholly-owned by the Central Bank of Nigeria (CBN) while, NMFB is owned 75% by the Bankers Committee, 15% by NIRSAL and 10% NIPOST.

NIRSAL PLC is a Non-Bank Financial Institution whereas, NMFB is a Nigerian financial institution licensed in Nigeria by the Central Bank of Nigeria.

How Do I Get a NIRSAL or NMFB Loan?

By now you should have little knowledge about NIRSAL loans. But the loan you'll easily apply for and get within a short period of time is the NMFB loans.

So how do you get NMFB or NIRSAL loans for your pet businesses?

You first and foremost need to apply for the facilities. I know you're already thinking whether you'll be qualified for NMFB or NIRSAL loans.

I'm sure you will, if you have a Micro, Small and Medium Enterprises (MSMEs) with a good credit record and cash flow or an idea of what your pet business will be like in the foreseeable future. This is where business plans, income projections, and the rest come in.

If you have an existing business, you should know your expenses, profit margin and losses. But If you're just venturing into the business, you’re going to need solid numbers and data if you want a chance at their money. However, NMFB have made it easier for business owners by training them on how to get these data on their business proposal before applying for the loan. 

How Much NMFB or NIRSAL Loan Do I Need?

I know you're already thinking about how much NMFB or NIRSAL loan you should apply for. The answer is very simple. You need the amount you'll be able to repay. So, before you apply for NMFB or NIRSAL loan, ensure that you know how you'll repay. This isn't a free money. Therefore, consider the needs of your business, the risks, loss and profitability before going into it.

NMFB or NIRSAL Loan Amount

The NMFB or NIRSAL loan amount you'll be given depends on the type of business. If your business is registered with the coperate affairs commission (CAC), have evidence of tax payment, good credit record and consistent cash flow, you can access from ₦3,000,000 upward. However, small businesses without the above mentioned criteria can only access small amount like ₦100,000 and above.

How To Apply For NIRSAL Loan Through the NMFB Loan Application portal

How should you apply for NIRSAL loans? The answer is simple. It is through the NMFB application portal. Just follow the steps below:

1. Visit nmfb.com.ng

If you're interested in getting the NMFB loan, visit their website with a smart phone or computer. Then search for the type of NIRSAL loan that you have the required documents and follow the next step below.

2. Fill the NMFB Loan Application

When you get to this step, fill the form for the particular type of loan you're interested in. Since there are many types of NMFB loans. Go for the type that suits your unique circumstances. The common types of NMFB loans are:

• NIRSAL COVID-19 loan - accessible by visiting the NIRSAL COVID-19 loan portal through https://nmfb.com.ng/covid-19-support/. The NIRSAL COVID-19 loan is for households and Micro, Small and Medium Enterprises (MSMEs) affected by the COVID-19 pandemic. Before you apply for NIRSAL household loan, you must have verifiable evidence of livelihood adversely impacted by COVID-19. In the case of NIRSAL SME loan, you must have an existing enterprise with verifiable evidence of business activities adversely affected by COVID-19, or a business with bankable plans to take advantage of opportunities arising from the COVID-19 pandemic.
• Agric Small Medium Enterprise Scheme or NIRSAL AGSMEIS Loan - accessible to small and medium agricultural businesses. Here, you can access up to ₦10,000,000 at 9% per annum.
• Commercial Loans - accessible to SMEs that are in the process of building, maintaining and expanding an existing business. NIRSAL commercial loan can be accessed by visiting here

3. Submit your NMFB application

After filling out the form and uploading the required documents, submit your application. If your application submission is successful, an email will be sent to your inbox.

4. Wait for approval and disbursement

After the successful submission of your NIRSAL application, you have to wait for the loan approval. This can take some days depending on the type of loan you applied for. During this time, NMFB will review your application and forward it to CBN for final approval.

If your loan is rejected, you'll be notified after some days. But if your loan application is successful, the money will be disbursed to the account number you used while applying for the NIRSAL loan.

What type of pet business should you invest NMFB or NIRSAL loan on?

In order to be a successful pet entrepreneur, you should have love for pets and animals. This is because you'll spend most of your time with them or their supplies.

Again, running a successful pet business requires a lot of hardwork and grit that can only be countered by passion and love.

Although I've written extensively on the six pet businesses you can start in 2021, for the purpose of this post, I'll only recommend a few that will be profitable in Nigeria so that you can be able to make more money and repay your NMFB or NIRSAL loan on time. 

Without much ado, the following are the best types of pet businesses you can invest your NMFB or NIRSAL loan on:

1. Dog Walking Business

If you're living in any of the big cities and towns in Nigeria with a high population of high net worth individuals, I'll suggest that you consider walking dogs as a business. Dog walking is one of the best ways to make money in Nigeria within a very short time.

You'll get paid any time your clients' dogs are made to exercise and spend time outside just like the university graduate that went into this business in Lagos.

Although dog walking business can be difficult during rainy seasons, it is profitable and easy to start with less capital.

2. Pet Supply Business

Using your NMFB or NIRSAL loan for pet supply business may sound unappealing to some people but, if done properly, it can become a one-stop-shop for pet owners near you.

You can even take your business online and start selling to people in all the states of the federation.

In order to be successful in pet supply business, you need to carry out thorough research about what pet owners love to shop for their pets.

In Nigeria, people love to buy the best dog food, leashes, collars, treats, and even dog toys. So, carry out your own findings to unravel what your customers will need or the type of value you can add to them through your pet business.

Conclusion

There are many ways you can fund your pet business. 

You can obtain capital from venture capitalists or angel investors. In Nigeria, this is not very common. So, you have to get the word out about your business. If you're lucky, friends and family members can come to your rescue, but if you have no one to fall back on, consider getting NMFB or NIRSAL loan.

Some people may consider getting NMFB or NIRSAL loan for a business as a bad idea, but remember it's your dreams and business. So, do whatever it takes but, don't sacrifice your dreams on the alter of conformity. And if you’re struggling with any publicity and technical things after your business is up and running, Contact me let me help you out.