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Bank Of Industry SME Loan – Requirements And How To Apply for It

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The Bank of Industry (BOI) gives short and long term loans to support SMALL AND MEDIUM ENTERPRISES (SMEs) in Nigeria. Much of the banks support to SMEs is done through it’s Small and Medium Enterprises Directorate which aims at Facilitating the Growth & Development of Small and Medium Enterprises

Focus Of BOI SME Directorate

The Small and Medium Enterprises Directorate has a focus on developing sustainable SME Business Models that will assist to unlock the inherent potential of the SME sector to improve SMEs’ contribution to national economic growth, job creation, resource endowment value chain development, skills and entrepreneurial development poverty alleviation, exports expansion, import substitution and overall GDP growth.

Benefits Of BOI SME Loans

1. Loan Terms : loan terms are concessionary and provided to ensure the greatest levels of success for the beneficiaries.

2 Tenor: The Bank offers extended repayment periods to give businesses ample time to repay loans and minimize default.

3. Sector Consideration:  They offer sector-specific loans which are tailored to the unique needs of micro-enterprises, SMEs operating along those value chains.

4. Partnerships: Apart from financing, they create and leverage their partnerships with other stakeholders to provide capacity building opportunities for improved business performance as businesses also require entrepreneurship and management skills to succeed.

5. Segmentation : The Bank delivers strategic support and financing to the disadvantaged and vulnerable segments within the grassroots that are typically underserved but critical to economic prosperity.

 

6. It is their resolve at the Bank and in collaboration with their strategic partners to develop products, as well as provide both Financial and Business advisory services/support. These are offered by the Bank at a cheaper rate and at close reach through the SME directorate network of state offices spread across the country.

Features Of BOI SME Loan

1. They take advantage of their knowledge of the business environment and footprint across 30 Business Offices, spread across the six geopolitical zones including the FCT, to offer SMEs loans with longer tenors (3-5 years) 

2. The loans are offered at below market rates;

3. A moratorium period of 3-12 months is allowed

4.SMEs are eligible to apply for loans that fall within the category of N10million to less than N1billion.

Requirements/Conditions For BOI SME Loan

To qualify for BOI SME loan you must me the following basic criteria:

1. These facilities are provided to duly registered business entities.

2. These entities must be operating along the value chains of the various sectors with high potentials for entrepreneurship development, employment generation and skills acquisition.

3. For your project to be approvec, your.business must be registered with the Corporate Affairs Commission (CAC)

4. Your business must have its audited financial statements (if existing)

 

Ways through which BOI SME Loans are Delivered

BOI  lending products are tailored to meet the financing needs of SMEs in the short, medium to long term and are delivered in 4 ways:

1. Project Based Lending

2. Cluster-Based Product Programmes

3. On-lending Facilities through Commercial Banks and Microfinance Banks under the Bottom of the Pyramid (BOP) Programme

4. Special Intervention Funds

 

How To  Apply for a BOI Loan

Loans can be applied for either physically or online.

For physical application, customers are advised to apply either at any of the BOI branch offices that is closest to them or at the headquarters (for loan applications that are N1bn and above).

Note that All loan applications are submitted at the various state offices closest to the customer. However, it is IMPORTANT TO NOTE that processing of the loan application does not commence until all documents stated in the checklist are provided.

Customers who want to apply online can do so by applying on the bank’s website or by clicking the link www.boi.ng/apply to apply.

For more information on BOI SME loans, do well to visit their website.

 

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