Are you searching online for how to apply for SMEDAN loan in Nigeria? You’ve come to the right place. Continue reading!
SMEDAN as a middle man agency stands for Small and Medium Enterprises Development Agency of Nigeria. The agency was ingrained by the SMEDAN Act of 2003 to advance the improvement of the MSME facet of the Nigerian Economic system. This agency orientate itself as a one Halt Outlet for MSME Improvement.
Micro Organizations are enclosed in the patronage of the Agency ever since they sort the fundamentals for SME.
The agency has the vision to set up an organized and efficient micro, small and average project sectors that will enhance a sustainable profitable evolution in Nigeria and also has a mission to facilitate the availability of resources to develop small and average entrepreneurs / investors.
SMEDAN executes its duty in assisting the improvement of small enterprises through its central office in Abuja and many other business offices extended end-to-end of the country.
This Small Medium Enterprises Development Agency join forces with some like oriented partner institutions like the Bank of Agriculture (BOA) and the Bank of Industry (BOI).
About SMEDAN Loans
Generally, SMEDAN does not straight off supply loans to commercial enterprises. However, SMEDAN acts as a intermediate serviceman connecting worthy MSMEs with appropriate loan providing organizations.
There are situations where the organization relate with some other governing agencies, such as the Bank of industries and the Central Bank of Nigeria in giving credit entry to small business organizations. SMEDAN principally maintain to entrepreneurship upbringing and business improvement, with the disbursal of loans being handled by other like mined financial institutions like the BOA, BOI, CBN.
Apart from loans of the open facets, SMEDAN also assist small businesses in approaching credit from private sectors.
How Can I Qualify For The SMEDAN Loan
The very first requirement to have access to the Small and Medium Enterprises Development Agency Loan is to have a fully registered Business. However, unregistered businesses can still apply for the loan then get registered at a future period.
All MSMEs are entitled to get a loan, via one of the various SMEDAN’s initiatory.
How To Apply For A SMEDAN Loan
There are majorly two modes of application for a loan via SMEDAN. You can apply to one of SMEDAN’s education programmes and you can use SMEDAN’s credit info portal.
Through SMEDAN Business Offices
To get a loan, you can apply to be part of SMEDAN sponsored initiatives of your choice. These programs atypically pertain you being disciplined on many aspects of business.
Application will necessitate visiting a SMEDAN business office near you in which you will be required to complete an application form and may later on be invited to an instruction or education program.
On passable windup of course some programs regard getting you a contingent grant to start or expand your business, or you will be given a soft loan. These loans come with low interest rates and require no collateral.
If you are granted aid or loan you would usually be expected to have a certified business, or be advised to register with the CAC.
Through SMEDAN’s Credit Information Portal
Before you apply to a commercial bank, SMEDAN has an Entry Information Portal that can be helpful for those wanting to apply for a commercial bank loan.
On the portal, you will find basic info about lenders and how much they can lend to you, loan refund time and interest charge.
There are 3 other credit options apart from business loans, personal loans, mortgage loans and credit cards. The portal has a search algorithm function, where you are well-matched to befitting lenders based on the information you give.
SMEDAN Loans Requirements
A list of what is required before a loan through SMEDAN is authorized could regard:
- Filled application form
- Business design
- Cash flow plan
- Certificate of Consolidation
- Valid ID
- Proof of address
- Information of collateral offered (if applicable)
Length of petition procedure differ based on the direct programme because after application with SMEDAN, you will be required to attend preparation and execute other status ahead before any loan can be paid out and repayment period depends on the plan, and credit facility applied for with favorable terms.