How To Check Nirsal Loan Approval With BVN Number
Since the outbreak of COVID-19 pandemic the hardship for many Nigerians had increased significantly . As part of relief efforts, the Federal Government launched the N75 Billion Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) Microfinance Bank COVID-19 loan program. The program aims to provide credit to Nigerians whose economic activities have been disrupted by the pandemic.
If you’ve applied for the NIRSAL COVID-19 loan for your small business or as an individual, you’re probably anxious to find out if your application has been approved and when you’ll receive your loan disbursement.
In this article, we explain step-by-step how to check your NIRSAL loan approval status using your Bank Verification Number (BVN).
NIRSAL and the COVID-19 Loan Program
NIRSAL Plc is an agricultural loan incentive scheme established by the Central Bank of Nigeria (CBN) in collaboration with the Federal Ministry of Agriculture and Rural Development and the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending.
The NIRSAL COVID-19 pandemic intervention loan program aims to support households and micro, small and medium enterprises (MSMEs) that have been particularly hard hit by disruptions caused by the pandemic and keep economic activities going. Under this program, NIRSAL acts as a facilitator between beneficiary borrowers and participating financial institutions.
NIRSAL is working with approved participating financial institutions to disburse up to N50 billion in Targeted Credit Facility loans so the most vulnerable Nigerians can have access to subsidized credit to cushion the effects of the COVID-19 pandemic. An additional N25 billion has been pledged by three participating banks to be disbursed as NIRSAL COVID-19 loans to borrowers.
Requirements for NIRSAL COVID Loan Approval
To qualify for approval for a NIRSAL COVID-19 loan, you must meet the following requirements:
• You must be a Nigerian youth aged between 18-35 years for the NIRSAL Microfinance Bank Creative Youth Entrepreneurship Program.
• If applying as a household, you must provide proof of bank account ownership.
• If applying for your business or agricultural enterprise, you must provide your business registration/incorporation documents.
• You must have a verifiable bank verification number (BVN)
• Your economic activity must have been impacted negatively by the COVID-19 pandemic. For instance, you lost your job or income source.
• Maximum loan accessible to an Obligor is N3 million.
Once you apply with the required documents, NIRSAL will assess your application and give a decision. If approved, you’ll receive your loan disbursement through your bank account.
How to Check Your NIRSAL Loan Approval Status
NIRSAL does not directly communicate approval status updates to loan applicants. However, you can easily check your NIRSAL COVID-19 loan approval status by following these steps:
Step 1: Dial *565*0# to access your NUBAN account on your mobile phone
Step 2: Select Option number 6 for “Nirsal Loan”
Step 3: Input your 10-digit Bank Verification Number (BVN)
Step 4: Input the bank account number you used to apply for the NIRSAL loan when prompted
Step 5: Your NIRSAL loan approval status will be displayed indicating whether your application was successful or not.
The steps are quite straightforward and by simply using your BVN and account number, you can immediately confirm if your NIRSAL COVID-19 loan has been approved for disbursement to your account.
If your loan request was declined, the reason for being unsuccessful will also be indicated so you’re aware of why you didn’t qualify. Some reasons applications are declined include:
• Unverifiable BVN
• Array of bank accounts linked to your BVN
• Multiple active loans linked to your account/BVN
• Account officer did not recommend release of the loan
• Lack of qualifying supporting documents attached to application
Meaning of NIRSAL Loan Status Codes
When you check your loan approval status, you’ll be met with one of the following status codes:
• 600 – This means your loan is approved, and you should receive your loan disbursement shortly.
• 300 – This code indicates your loan is still being processed. Check back again later for status updates.
• 400 – A code of 400 signifies incomplete documentation. Your application has missing documents.
• 200 – This means your loan was declined due to one of the reasons outlined earlier.
• 100 – A status code 100 indicates there was an error in retrieving your loan status records
If your loan request was declined unfairly, contact NIRSAL through their official communication channels to make a complaint and appeal the decision. Be sure to provide any additional information needed to qualify.
How Long After Approval Until You Get Your Loan
If your NIRSAL COVID-19 loan status displays as approved, you’re definitely getting your loan disbursement. However, when exactly will the loan funds hit your bank account?
After your loan is approved, disbursement can take between 5 to 30 days before the money is credited into your account. The main determinant is whether it is a term loan or cash advance requiring a moratorium.
Term loans may have a built-in moratorium before repayment commences. Hence, you will get the lump sum at once after the moratorium elapses. For cash advances, you can access in under 10 days barring any unforeseen delays.
Also, the speed of disbursement depends on factors like:
• Your bank’s efficiency – Some banks process loans faster than others
• Volume of approved loan requests – More requests strains capacity
• Timing within the month – Early month is faster as targets get stiffer
Overall, be patient because the funds will certainly hit your account in under a month even for term loans. If you have not been credited way past 30 days, follow up for assistance.
How to Increase Your Chances of Getting Approved
As earlier highlighted, incomplete documentation is one reason loan applications get declined. Hence, you can boost your chances of successfully getting approved and accessing the NIRSAL COVID-19 funds by:
⦁ Ensuring you provide all mandatory documents such as BVN, business registration, and proof of account ownership.
⦁ Giving as much detail as possible about how COVID-19 impacted your finances to justify needing support. Provide evidence.
⦁ Applying through participating microfinance banks and financial institutions near you with talent you easily follow-up with.
⦁ Following-up respectfully if denied rather than getting aggressive. Find out what information you can supply or clarify to get an appeal.
Frequently Asked Questions
What is NIRSAL?
NIRSAL stands for Nigeria Incentive-Based Risk Sharing System for Agricultural Lending. It is an agricultural loan scheme set up by the Central Bank of Nigeria (CBN) to provide financing to farmers and agricultural businesses.
What is the NIRSAL COVID-19 loan program?
The NIRSAL COVID-19 loan program was launched to support households and small businesses financially impacted by the COVID-19 pandemic. It offers loans at 5% interest over a 5-year term with a 12-month moratorium.
Who qualifies for a NIRSAL COVID-19 loan?
To qualify, you must be a household or micro/small business affected by COVID-19 disruptions. You need to be a youth aged 18-35 for the creative entrepreneurship loans. Applicants require BVN verification.
How can I check the status of my NIRSAL loan application?
You can check your NIRSAL loan approval status by dialing *565*0# to access your NUBAN account, selecting option 6 for NIRSAL loan, inputting your 10-digit BVN number, then inputting the account number used to apply when prompted.
What do the different status codes mean?
Status codes include: 600 (approved), 300 (processing), 400 (incomplete documents), 200 (declined), and 100 (error retrieving status).
My loan shows as approved, when will I get the money?
Disbursement can take 5 to 30 days after approval before the loan amount hits your bank account, depending on the loan type, bank efficiency, volume of approved loans etc.
What documents do I need to apply for the loan?
Required documents include BVN, business registration/incorporation (if applying for business), proof of account ownership and evidence of impact of COVID-19 on your finances/income.
Conclusion
By using your BVN, you can now easily check if your NIRSAL COVID-19 loan application has been approved or declined straight from your mobile phone using the provided USSD code. You no longer have to wait indefinitely or go physically chasing bank officials.
The loan program aims to alleviate hardship amongst Nigerians facing economic challenges worsened by impacts of the coronavirus pandemic. If approved, ensure you utilize the funds granted solely for the stated purpose in your loan application and repay as at when due.
