If you’re serving Nigeria as one of the 350,000 National Youth Service Corps members in any state, you could get an NYSC Loan. The NYSC Loan assists corps members registered under the Skills Acquisition and Entrepreneurship Development (SAED) to start up small businesses which can generate income and also create employment opportunities around them.
The Federal government allocated N83 billion naira for NYSC activites in 2018. This includes the N3,200 paid to each corps member during the three-week orientation in camps, the NYSC also pays N19, 800 as monthly allowance for the duration of the service year. The amount is usually not sufficient for corp members to embark on their entrepreneurial business activities.
The Federal Government has made plans for corps members with good business ideas to get loans of between N200,000 and N2m to start their businesses after the service year. The business proposal will determine how much will be given to each applicant.
The loan is provided in collaboration with the Bank of Industry, the Central Bank of Nigeria, and Small and Medium Enterprises Development Agency of Nigeria. The loan will be interest-free and the NYSC discharge certificates of interested corps members, who apply for the loans, will be used as the collateral. The discharge certificates will be subsequently returned to them after repayment of the loan, which has no time bound.
- Asset Financing – This loan is tailored for Corps Members who want to buy various products like household goods, white goods, other electronics, income generating assets (generators, freezers, grinding machines etc.).
- Business – This loan will help corps members to start up small businesses which can generate income and also create employment opportunities around them.
- Education – This loan is for corps members who want career advancements to access discounted and affordable training from renowned and professional trainers across Nigeria. It helps Corps Members obtain that additional advantage that increases employment opportunities after the service year
Providers of NYSC Loans
Requirements for NYSC loans
- NYSC ID Card
- Valid ATM Card (must be valid throughout service year)
- Attestation Form from SAED (if you desire a Biz-Starter Package)
- Clearly written and signed Letter of Undertaking by Corps Member showing signature and date
- Clear passport photograph (Face and shoulders only)
- Clear photograph of yourself in Full NYSC Regalia
- PPA Posting letter
The NYSC loans were put in place after the NYSC observed that youths, after the service year, always end up unemployed and roaming the streets looking for non-existing white collar jobs. It will empower corps members after the service year to be self-employed and also be employers of labour and reduce their involvement in criminal activities.