By Samuel Olusegun Precious
The Federal Government on Wednesday launched a new credit facility named “YouthCred,” designed to provide young business owners with access to collateral-free, single-digit interest loans of up to ₦2 million.
Unveiled in Abuja by Minister of Finance Taiwo Oyedele, the YouthCred scheme targets 500,000 young entrepreneurs nationwide, aiming to dismantle traditional banking barriers that hinder small business growth.
Under the guidelines, Nigerian entrepreneurs aged 18 to 35 can access funding ranging from ₦200,000 to ₦2 million without providing physical collateral or guarantors. Applicants are required to show evidence of steady business cash flow, a viable repayment plan, and responsible credit history.
“YouthCred is tailored to expand financial access for young people who consistently face strict bank collateral requirements,” Oyedele stated during the launch.
The loans carry a single-digit interest rate capped at 2 percent monthly, with flexible repayment terms spanning 1 to 12 months. Applications are processed online via the official YouthCred portal and disbursed through participating regulated financial institutions.
The initiative is managed by the Nigerian Consumer Credit Corporation (CREDICORP), which reported it has already disbursed ₦30 billion to over 200,000 Nigerians under existing credit schemes with zero non-performing loans.
YouthCred joins a broader portfolio of government credit interventions aimed at empowering young Nigerians, including SMEDAN’s ICSS/GROW Fund for vocational graduates, the Creative Economy Development Fund for fashion and entertainment entrepreneurs, and the Agribusiness Fund targeting youth-led agricultural ventures.
