The CBN Credit support for the Healthcare sector is an on-lending intervention scheme for the Healthcare sector developed as part of the pro-active measures to cushion the economic impact of the coronavirus (COVID-19) pandemic. The initiative was developed to provide funding to indigenous pharmaceutical companies and other organizations in the healthcare value chain to enable them increase capacity to meet the increasing demand for healthcare arising from the coronavirus pandemic.
This initiative aims to provide financial assistance to the healthcare industry by facilitating access to credit for healthcare providers, institutions, and related businesses.
The scheme is designed to address the funding gaps in the healthcare sector, particularly for projects and investments that contribute to the development and improvement of healthcare infrastructure, equipment, and services. It serves as a means for the Central Bank of Nigeria (CBN) to channel funds to qualified financial institutions, which in turn lend to eligible healthcare beneficiaries.
Through this on-lending intervention scheme, the CBN collaborates with financial institutions, such as commercial banks, to ensure that healthcare providers can access the necessary funds to enhance their operations and deliver quality healthcare services. The scheme may involve offering favorable interest rates, longer repayment periods, or other incentives to encourage borrowing and investment in the healthcare sector.
By providing credit support, the CBN aims to stimulate growth and development in the healthcare industry, ultimately improving healthcare delivery and accessibility for the Nigerian population. The scheme recognizes the importance of a robust healthcare system and seeks to address the financing challenges faced by healthcare providers, allowing them to expand their capabilities, upgrade facilities, and enhance the overall quality of care provided.
Loan Features:
Loan Limit
- For working Capital: 20% of their average turnover for the last 3 years up to a maximum of N500 million per obligor. Where the business is not up to 3 years in operation, 20% of the previous year’s turnover would be considered.
- For Term Loan: Maximum loan amount of N2 billion
Interest Rate
- Interest rate is a maximum of 5.0% p.a. (all inclusive) up to 28th February 2021.
- Thereafter, interest on the facility shall revert to 9% p.a. (all inclusive) as from 1st March 2021.
Loan Tenor
- Working capital shall be for a maximum period of one (1) year, with provision for rollover not more than three (3) years.
- Term loan shall have a maximum tenor of not more than 10 years with a maximum of one year moratorium on repayment.
- For construction projects, the tenor shall be determined by the completion date.
Eligible Participants
- Healthcare product manufacturer
- Healthcare service providers/ medical facilities
- Pharmaceutical/medical products distribution and logics services
- Other human healthcare service providers
Benefits
- This initiative provides long-term, low cost finance to facilitate the development of the Nigerian healthcare sector.
- It will improve access to affordable credit for indigenous pharmaceutical companies for expansion and to encourage compliance with the WHO Good Manufacturing Practice.
- The scheme will contribute to the overall development of the Nigerian Healthcare system.
You can access the loan through Access bank, click here to apply
