Last updated on August 8th, 2023 at 09:43 am
Starting a business in Nigeria today requires lots of capital, which most don’t have access to. Bank of industry was created to meet such needs, specializing in providing access to funds for startups, SMEs, and large enterprises.
This article provides information about how you can apply for Bank of Industry Loans in Nigeria, as well as what it requires to do so.
Basically, the Bank of Industry is tasked with providing financial assistance for small to medium-scale businesses in Nigeria through the use of loans. Therefore a BOI Loan is precisely for this purpose.
Anyone with a legitimate business can apply for a Bank of Industry Loan. However, more priority is given to businesses engaged in manufacturing and processing. The loan is targeted at sectors such as processing of agricultural materials, information technology, oil and gas, the creative industry and mining of solid minerals. It is important to note that BOI loans are only disbursed to business entities and not individuals.
Also, BOI loans are only meant for the purchase of industrial equipment. They can not be used to buy assets like land or building.
BOI loans start from an amount of N5 million. However, the Bank of Industry can provide smaller loans in Nigeria through its matching funds platform, which it operates through Microfinance banks.
The Interest rates 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.
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, mortgage on landed property, debentures and external guarantors (in the case of loans worth less than N10 million. Third-party collateral is also suitable.
Any business applying for a bank of Industry Loan must possess the following;
(For Micro-credit Loans)
(For Small and Medium-scale Enterprise/Large scale Entrepreneur)
You can apply for BOI Loans in two ways. For Physical application, business owners are to visit any of the BOI branch offices situated in 24 states in 6 geopolitical zones in the country or the headquarters in Lagos.
Applications for BOI loans can also be made online, through the Bank of Industry Website or through the application link www.boi.ng/apply.
Processing of BOI loans can take 30 to 40 working days to obtain approval. Afterwards, it takes 15 days for the credit to be disbursed.
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.