Anchor Borrowers Fund – Non-interest Loan Application

Anchor Borrowers Program Loan

The Anchor borrowers fund is here for you to benefit from. Are you looking for a way to boost your farming system? Or are you troubled about how to expand your products? Worry no more. You can use the CBN’s Anchor Borrowers Program Loan to grow your agricultural sector. 

Small Holder Farmers can increase product quality by applying for a loan from the Anchor Borrowers’ program. 

Learn more about the CBN’s Anchor Borrowers Program and how you can apply for it.

What is Anchor Borrowers Fund Program?

The Anchor Borrowers Program is an interference loan scheme run by the Central Bank of Nigeria. The Federal government established this program in 2015 to boost the agricultural industry. It aims to forge a financial connection between smallholder farmers and agro anchors.

The program uses a chain value strategy that connects the input to production, processing, and marketing. Also, the scheme helps smallholder farmers access high-quality agricultural inputs, which boosts the quality of their products to meet international measures.

The following are the main goals of the Anchor Borrowers Program:

  • Diversify the economy
  • Improve access to finance
  • Inclusive growth
  • Job Creation

The Anchor is the corporation that requests funding on behalf of smallholder farmers working on between one to five hectares of land and determines a source of a particular quantity and product quality for their processing needs.

Models Available to Nirsal Micro Finance Bank

The ABP comes in four models. They stand in for the routes users can use to reach the system. The figures are:

  • The private sector Model: Includes a farmer, an anchor, and a bank. The Farmer is the main obligor, Bank distributes inputs, anchor aggregates, and leftover commodities. The foundation of the arrangement is between the Bank, the Anchor, and the Farmer.
  • The Prime Anchor Model: Agro-processors/anchors accept full responsibility for enabling farmers to access loans and act as obliges and consumers of the generated goods. They provide collateral cover, which may be in the form of landed property or cash collateral, to access the money on behalf of the farmers.
  • The Commodities Associations Model:  The state government; is the principal creditor and off-taker of the agricultural product farmers generate. The state government gives the PFI an irrevocable standing payment order that covers the amount of the principal and interest due.
  • The Public Sector (State Government) Model: The Farmer is the primary obligor, and the commodity association organizes farmers. For off-take, they cooperate with the Anchor.

Check out the following steps to apply:

First step: 

Submit an Expression of interest: For the bank to become their PFI (Participating Financial Institution), the anchor (a company, cooperative, or association) submits an Expression of Interest, for example,NIRSAL MICROFINANCE BANK’s Expression of Interest to Serve as the PFI for the Maize Farmers Program Under the CBN Anchor Borrowers Program.


We reply to the anchor through email after receiving the EOI (Expression of Interest). We formally request the following:

  • The checklist of farmers needed ( names, BVNs, numbers)
  • Ability of the processor to purchase the produce at harvest from the farmers
  • The commodity required
  • Using NIRSAL Microfinance Bank as the project’s Participating Financial Institution (PFI).

Second step:

 Appraisals: The legal team will undertake a due diligence search when the Anchor has filed all necessary paperwork, including the title deed he uses as collateral. ABP will undertake an independent valuation exercise, and the legal team will give a checklist for the construction of a legal mortgage, which the ABP team will transmit to the anchor if the search report is positive and free from any encumbrances.

We anticipate that the anchor will host town hall meetings, PMT (Project Management Team) meetings, land mapping, and preparation of the farmlands while all of this is going on. 

Third step:

Request to CBN: Make a fund request to the Central Bank of Nigeria.

Fourth Step:

Offer letter and Payment: Following the delivery of the offer letter to the anchor, the triangular agreement starts. Cash payment starts once CBN has received the funds.

Amount of loan and Interest Rate on 

Following the commodity’s Economics of Production (EoP), Nine percent is the yearly interest rate (now 5 percent per annum to cushion the effect of the Covid19 pandemic).

How to Repay Anchor Borrowers Loan?

You can pay the Anchor borrowers fund from the produce harvested. Although, the length of the loan depends on how long the product has been in circulation. As a result, farmers are to refund the loan as soon as the products are ready.

Other Loan Options


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