How to Obtain a Loan from the Bank of Industry (BOI)

About the bank of Industry

Established in 2001, the bank of industry was set up by the federal government of Nigeria to provide financial assistance for the Small, medium and large enterprises looking to establish, expand their services, diversity their product lines, expands their business into new markets etc.

The bank recently launched its 50billion naira fund with Alhaji Aliko Dangote, Nigerian billionaire and business magnate. Also the $200 million special entertainment fund announced by the federal government is to be managed by the BOI.

How does the bank operate?
The bank just like any other bank is profit driven, with a board of directors. It has shareholders and publishes its own audited annual financial statements. It doesn’t actually give loans to companies, but agrees to pay suppliers on behalf of the company
It does not finance the acquisition and construction of properties neither does it give loans to people who want to start businesses. The bank only finances companies who add value.

The bank loan-conditions
The banks interest rate is 10%, the tenor is subject to the payback period of the project. There is a one off 1% processing fee and 1% commitment fee and other legal charges which will depend on the nature of the intended project. The minimum loan for SMEs is 10million subject to maximum which can only be approved by the board.

BOI products and services
• Medium and long term loans
• Working capital loans
• Equity financing
• Lease financing
• Loan guarantees
• International trade products
Who does BOI assist?
• Small, medium and large enterprises excluding cottage industries
• New or existing companies seeking expansion, modernisation or diversification

Credit worthy promoters will be required to prove their commitment to the project by contributing at least 25% of the project cost excluding land
Borrowers whose management capability, financial situation (including availability of collateral and guarantee), character and reputation are incontrovertible
Clients with demonstrable ability to meet loan repayments
Borrowers with no record of unpaid loans to erstwhile development finance institutions and other banks.
How to get a loan from BOI
To apply for a loan, you are required to present a detailed feasibility study of the intended project and other documents outlined below:
• Formal application
• Certificate of incorporation
• Certified copy of memorandum of association and articles of association
• A photocopy of filed returns
• Land and building documents
• Quotation for supply of items and machinery and equipment
• Write-up of technology, manufacturing process, technical partners, if any

For more information on documentation required for processing a loan from the bank of Industry (BOI), visit any of the banks’ branches.

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