We are here again with another legitimate loan opportunity for you. The Bank of Industry (BOI) loan was created by the Nigerian government and fully committed to improving entrepreneurs businesses. This is surely a one stop hope when it comes to loan requesting in Nigeria.
Imagine a loan request coming directly from the Nigerian Government? How is it going to feel like? Well, we won’t say much.
We’ll allow you to judge,
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and so many more. So we came up with some amazing loan offers like this one which can be found here.
Things You Should Know Before Applying For Bank of Industry Loan (AKA BOI Loan)
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.
2. Entities That BOI Finances
Bank of industry only finances enterprises or companies and not an individual person 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.
3. Items That Boi Loan Finances
The bank is principally set up to finance industrial equipment used in manufacturing.
The Bank does not finance land and building which are expected to be financed from equity.
You can also access your working capital requirements from any of the ten (10) SME friendly banks that Bank of Industry partners with at Monetary Policy Rate plus 6 percent.
4. Mode Of Disbursement
The bank 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.
5. Amount That Can Be Financed By BOI
BOI’s loan support to the SME starts from N5 million. However, loan below N5 million are provided on their matching fund platform which is operated in collaboration with various state governments and on our Bottom of the Pyramid (BOP) scheme which is operated through MicroFinance Banks.
6. Collateral Requirements
As part of the fiduciary responsibility in managing funds under its care, Bank of industry requires that you pledge some assets to secure you loan.
However, the Bank also accepts other forms of security subject to adequate coverage of the loan being provided to you. Types of security the Bank accepts include:
- Legal mortgage on a landed property. The property must be duly registered with a Certificate of Occupancy
- Debenture on assets of the company
- External Guarantors with Notarized statement of Networth for loans below N10 million.
7. Startup Businesses
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.
A startup would need to provide proof of cognate experience in its business area and would need to have a highly qualified management and operational team with sound management structure.
8. You Need To Support Your Application With Some Documents
There are documents you should be prepared to upload while you apply on this platform.
How To Apply For BOI Loan 2020
To apply for BOI loan or Bank of Industry loan from Nigeria, all you have to do is visit their registration page https://www.boi.ng/apply/register and apply.
The application process is not really a difficult one. it;s just a simple on-page information which you won’t have to crack your knots to answer.