How to get loan from BoI (6)
THIS is the last part of the series on basic information for Bank of Industry, BoI loan applicants, and we use this to give a summary of all we have discussed over the past six weeks we
The bank of industry targets businesses that engage in manufacturing and processing activities. Target sub-sectors include Agro-processing, Solid Minerals, Information Technology, Oil and Gas and Creative Industry, about 41 business areas in all.
The Bank only finances enterprises or companies and not individual persons or group of persons. The company / enterprise must be duly registered and you will be required to provide the registration number for a Limited Liability Company or business name for an enterprise before you can proceed with your application.
The Bank finances manufacturing equipments only. It does not finance land and buildings for the manufacturing business neither does it give working capital loan directly. You can access your working capital requirements from any of the ten SME friendly banks that Bank of Industry partners with.
BoI does not disburse the loan to the borrower in cash but to the vendors and suppliers of the equipment that the loan application is for.
BOI’s loan support to the SMEs starts from N5 million. However, loan below N5 million are provided on its matching fund platform which is operated in collaboration with various state governments. They also grant such lower loans through its Bottom of the Pyramid (BOP) scheme which is operated through MicroFinance Banks.
The Bank requires that you pledge some assets to secure your loan. We listed the forms of security in previous part of this series.
While the Bank under its general risk acceptance criteria requires a prospective borrower to have at least three years acceptable performance track record, it can also lend to start-ups at its discretion and on a case-by-case basis.
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