Last updated on November 20th, 2023 at 01:06 pm
Need help starting or growing your small or medium-sized business in Nigeria?
The Bank Of Industry (BOI) Loan can provide you with a loan.
This guide will show you how to apply and the needed requirements.
How To Apply For A Bank Of Industry Loan
You can apply for BOI Loans in two ways:
- For Physical application, business owners are to visit any of the BOI branch offices located in 24 states in 6 geopolitical zones in the country or their headquarters in Lagos State.
- Applications for BOI loans can also be made online, via the Bank of Industry website or the application link.
The Interest rate for BOI Term Loans is at a maximum of 10% per annum, while that of loans for working capital is at 12-15% per annum.
BOI loans start from an amount of N5 million. However, the Bank of Industry can provide smaller loans through its matching funds platform, which it operates through Microfinance banks.
Bank Of Industry Loan Requirements
Any business applying for a Bank of Industry Loan must possess the following:
(For Micro-credit Loans)
- Application letter
- Certificate of Registration (photocopy)
- Copy of cooperative’s constitution and bye-laws
- Business plan
- Business owner’s passport photographs (4 copies)
- Copy of means of identification
- Business bank statement for one year
- Record of sales for six months and operating expenses.
- Evidence of collateral
(For Small and Medium-scale Enterprise/Large scale Entrepreneur)
- Formal letter of application
- Copies of the certificate of incorporation, a certified true copy of the memorandum, and articles of association.
- Photocopies of the certified true copy of forms C02 and C07.
- Business plan.
- Statutory Certificate of Occupancy or Deed of Assignment
- Photocopy of title documents to the collateral
- Approved building plan
- The estimate of the cost to be incurred on the factory building
- Valuation reports on factory building(s) (for existing projects) and property offered as collateral security.
- Plant and machinery quotations
- The audited accounts of the business in the last three years
- Tax clearance certificate for the company and two directors for the previous three years.
- Passport photographs of each of the two directors and the company secretary (4 copies)
- Evidence of appointment
The Bank of Industry needs businesses applying for loans to be held accountable, and so it mandates some assets of the businesses be pledged to secure the loan.
Other security options such as bank guarantees, mortgages on landed property, debentures, and external guarantors (in the case of loans worth less than N10 million). Third-party collateral is also suitable.
Conclusion
If you’re looking for a means to expand and grow your business, the Bank of Industry provides the perfect loans suitable for such capital-intensive financing.
