It’s no longer news that the Federal Government of Nigeria has officially rolled out the Youth Credit Scheme (YouthCred), a government-backed loan programme that allows employed Nigerian youths to access nontaxable loans of up to ₦5 million, with repayment spread over 12 to 24 months.
The scheme, managed by the Nigerian Consumer Credit Corporation (CREDICORP), is designed to provide young workers with access to affordable credit while helping them build a verifiable credit history outside high-interest loan apps.
However, since the launch, many Nigerians have raised questions around tax deductions, repayment pressure, and long waiting lists. Here is what is officially known so far.
Is the YouthCred ₦5 Million Loan Taxable?
One of the most searched questions right now is:
“Will the new 20% tax be deducted from the YouthCred loan?”
According to programme clarifications, the YouthCred loan is NOT taxable.
This means:
- No 20% tax will be deducted from the loan amount
- Applicants will receive their approved loan without tax reduction
- Borrowers are only expected to repay the loan over the agreed 12 to 24-month period
Here’s why:
The loan is classified as credit, not income, which exempts it from tax deductions under the new tax policy.
YouthCred Repayment Period and How It Works
- Maximum loan amount: ₦5,000,000
- Repayment duration: 12 to 24 months
- Eligible category: Employed youths (public or private sector)
- Repayment method: Structured repayment, typically through salary deductions
The government says this structured repayment model is meant to reduce default risk and protect borrowers from accumulating penalties or hidden charges.
Who Is Eligible for the YouthCred Loan?
To qualify for YouthCred, applicants must:
- Be between 18 and 39 years old
- Be gainfully employed (public or private sector)
- Have valid BVN and NIN
- Be able to verify identity and employment details
The scheme is not open to unemployed youths at the moment.
Why Many Applicants Are on a Waiting List
Since applications opened, several youths have reported being placed on a waiting list after applying, with no immediate feedback.
This delay is believed to be due to:
- High volume of applications nationwide
- Ongoing identity and employment verification
- Phased disbursement based on funding availability
Being on a waiting list does not mean rejection. It simply means the application is under review or queued for the next disbursement cycle.
Concerns About Salary vs 12 to 24-Month Repayment
Some youths have also raised concerns about whether their monthly salary can realistically cover repayment within 24 months, especially for large loan amounts.
Financial experts advise applicants to:
- Apply only for what matches their income level
- Consider existing salary obligations before selecting loan size
- Understand that salary-linked repayment reduces flexibility but improves approval chances
How to Apply for the FG YouthCred Loan
Interested applicants can apply through the official portal:
Website: app.youthcred.com
During registration, applicants are required to provide:
- Full name and email address
- Strong password (uppercase, lowercase, number, special character)
- BVN (11 digits)
- NIN (11 digits)
- Date of birth (18–39 years)
- Live photo capture for verification
Why YouthCred Matters for Nigerian Youths
YouthCred is positioned as a safer alternative to:
- High-interest loan apps
- Informal lenders
- Salary-draining emergency loans
If properly implemented, it could help young Nigerians:
- Access affordable credit
- Build a formal credit profile
- Avoid exploitative lending platforms
YouthCred is not a grant but a structured loan. Applicants should apply with realistic repayment expectations and be patient with verification timelines.
As more updates emerge on disbursement schedules and waiting-list reviews, we will continue to publish verified information.
Guys, what’s your thoughts on this?