The Tertiary Institutions Entrepreneurship Scheme (TIES) is a loan scheme launched by the Central Bank of Nigeria (CBN) in 2021 to provide financial support to graduates and undergraduates of Nigerian universities and polytechnics who want to start or expand their businesses.
The TIES loan scheme has two components:
- Term Loan Component: This is a loan that is repayable over a period of 5 years. The loan amount is capped at N25 million, and the interest rate is 5% per annum. There is a maximum moratorium of 12 months, during which the borrower does not have to make any repayments.
- Equity Investment Component: This is an equity investment that is made in the form of fresh capital for start-ups, expansion of established businesses, or reviving of ailing entrepreneurial businesses. The equity investment is capped at N10 million.
To be eligible for a TIES loan, you must meet the following criteria:
- You must be a graduate or undergraduate of a Nigerian university or polytechnic.
- You must have a business plan that has been approved by the CBN.
- You must have a minimum equity contribution of 20% of the loan amount.
- You must be able to demonstrate that you have the skills and experience necessary to run a successful business.
The TIES loan scheme is a great opportunity for graduates and undergraduates who want to start or expand their businesses. The loan provides much-needed financial support, and the equity investment can help to boost the growth of your business.
ALSO READ: 8 Steps How To Get Personal Loan In Nigeria
Here are some additional details about the TIES loan scheme:
- The loan application process is online. You can find the application form on the CBN website.
- The loan is subject to the approval of the CBN.
- The loan will be disbursed to your bank account.
- You will be required to repay the loan in monthly installments.
If you are interested in applying for a TIES loan, I encourage you to visit the CBN website for more information.
Businesses that are eligible for the TIES Loan
The Tertiary Institutions Entrepreneurship Scheme (TIES) Loan is a loan program offered by the Central Bank of Nigeria (CBN) to graduates of Nigerian polytechnics and universities who are interested in starting or expanding a business. The loan is available for businesses in the following sectors:
- Agribusiness: This includes businesses involved in the production, processing, storage, and logistics of agricultural products.
- Information technology: This includes businesses involved in the development of software, business process outsourcing, robotics, and data management.
- Manufacturing: This includes businesses involved in the production of goods, such as furniture, clothing, and food.
- Services: This includes businesses involved in providing services, such as transportation, consulting, and education.
- Science and technology: This includes businesses involved in medical innovation, robotics, ticketing systems, traffic systems, renewable energy, and waste management.
To be eligible for the TIES Loan, businesses must meet the following criteria:
- The business must be owned and operated by a graduate of a Nigerian polytechnic or university.
- The business must be less than 7 years old.
- The business must have a valid business plan.
- The business must have a sound financial track record.
The TIES Loan can be used to finance a variety of business expenses, such as working capital, equipment purchases, and real estate. The loan amount is determined on a case-by-case basis, but it can be up to NGN10 million. The interest rate on the loan is 9% per annum.
The TIES Loan is a great opportunity for graduates of Nigerian polytechnics and universities to start or expand their businesses. If you are interested in applying for the loan, you can visit the CBN website for more information.
Interest Rate For TIES Loan
The interest rate for TIES loans is currently 5% per annum. This will remain in effect until February 28, 2023. After that, the interest rate will increase to 9% per annum.
The TIES loan is a government-backed loan program that provides financing to graduates of Nigerian universities and polytechnics who are interested in starting or expanding their own businesses. The loan program is designed to help create jobs and boost economic growth in Nigeria.
The maximum loan amount that can be borrowed under the TIES program is N25 million for partnerships and companies, and N5 million for individual/sole proprietorship/small company projects. The loan term is five years, and there is a maximum of 12 months moratorium on principal and interest payments.
To be eligible for a TIES loan, you must be a graduate of a Nigerian university or polytechnic within the past seven years, and you must have entrepreneurial interest. You must also have a business plan that is approved by the CBN.
If you are interested in applying for a TIES loan, you can do so online at the CBN’s website. You will need to provide your personal information, your business plan, and other documentation.
Do you find Six9ja useful? Click here to give us five stars rating!