stmIn this guide, we’ll be discussing Bank of Industry Loan and how to apply for it. Including the requirements. Read on!
The Bank of Industry is an improvement financial establishment centered on supplying loan credit facilities for industrialized instrumentality used in manufacturing. This financial Institution is completely owned by the Federal Government of Nigeria.
The bank surfaced from the authorities’ rationalisation of Development Finance Institutions (DFIs) which are the Nigerian Industrial Development Bank (NIDB) and the Nigerian Economic Reconstruction Fund (NERFUND), Nigerian Bank for Commerce (NBCI).
The Bank of Industry is projected to render financial help to small or medium scale business concerns in Nigeria by disbursement of loans and has dedicated time and finance to help small businesses thrive because, the bank is solely for this function.
Who Is Eligible For The BOI Loan?
The Bank of industry loan is customized for only legitimate businesses. Nevertheless, more priority is given to business concerns involved in manufacturing and processing activities.
This financial assistance is referenced to facets such as agricultural materials processing, information technology, creative industries, and mining of solid minerals, oil and gas. It is essential to note that this loans are only paid out to business organizations and not to individuals.
Besides, the BOI loan is only meant for acquiring industrial equipment and cannot be used to buy possessions like land or structures.
How Much Does The Bank Of Industry Give Out As Loan?
BOI loans kickoffs from a sum of N5 million (N5,000,000). Still yet, the Bank of Industry can render small loans through its coordinated monetary resource platform which runs through the Microfinance banks.
Interest rates for BOI Conditional Loans is set at a maximum of 10% per annum (yearly), while loans for on the job working capital interest range is set at 12-15% per annum.
How To Apply For Bank Of Industry Loans
Applications for BOI Loans can be done in 2 modes:
For the Physical application, business proprietors are to visit any of the BOI subdivision business office located in 24 states in 6 geopolitical zones in Nigeria or the headquarters office in Lagos, Nigeria.
Applications for the Bank of industry loans can be done online via the BOI website or follow the application link www.boi.ng/apply to apply.
BOI loans can take 30 to 40 working days to process and obtain approval. Subsequently, it takes 15 days for the loan pay out.
Requirements For The Bank Of Industry Loans
The BOI loan requirement is splited into 2 formats i.e for micro-loans and Large Scale Loans.
For Micro- Loans;
- An application Letter
- Credential of Enrollment
- Copy of Cooperative’s constitution and Bye-laws
- Business Design
- 4 copies of Business owner’s passport-size photographs
- Current Tax Clearance Certification
- Valid means of Identification (copy)
- Business bank Evidence for one year
- Number of sales for six months and operational cost.
- Collateral evidence
For Large scale loans;
- Formal Letter of Application
- Certificate of Incorporation copies, Certified True Copy of Memorandum and Articles of Organization
- Photocopy of the Certified True Copy of Forms C07 & C02
- Business Design
- Legal Certificate of Residence or Accomplishment of Assignment
- Title Documents to the Collateral (photocopy)
- Authorized Building Design
- Estimate cost to be incurred on Industrial Structure.
- Reports on Factory Buildings and holdings given as Collateral Safety
- Machinery and Plant quotations
- Audited accounts of the business concern for the last three years
- Tax clearance certificate for the company and two Administrators for the previous three years.
- 4 Passport-sized photographs of each of the two Administrators and the Company Secretary
- Attestation to Appointment
Summary
BOI need business organizations requesting for loans to be accountable so, it authorize that some possession of the business to secure the loan. Some other safety alternatives like bank guarantees, mortgage on landed property, bond certificate and external guarantors in the case of debt sum less than N10,000,000.
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