How To Get Business Loan From Development Bank Of Nigeria

In Nigeria, there are over 37 million MSMEs contributing to over 50% of Nigeria’s GDP. However, less than 5% of these businesses have adequate access to credit in the financial system.

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MSMEs are, collectively, the largest employers in many low-income countries including Nigeria, yet their viability is being threatened by lack of access to risk-management tools such as savings, insurance, and credit. Indeed, their growth is often stifled by restricted access to credit, equity and payments services.

SEE ALSO: Development Bank of Nigeria (DBN) Recruitment 2021 Commences/Apply Now

Who can get a DBN loan?

All MSMEs (startups or existing) involved in productive enterprises are eligible to get a loan from the Development Bank of Nigeria. DBN is poised to provide funding and risk-sharing guarantees through Participating Financial Institutions (PFIs), who will then on-lend to end beneficiaries.

In other, to access these loans, it is required that the business must be a customer of the eligible Participating Financial Institutions (PFIs) in Nigeria. The PFIs includes major Commercial Banks, Microfinance Banks, Development Finance Institutions (DFIs) and other Financial Institutions.

How to get a Development Bank of Nigeria (DBN) Loan

1. Visit your bank: Commercial Bank, Microfinance Bank, Development Finance Institution (DFI) and other Financial Institutions and indicate you want to apply for a DBN Loan.

2. The Bank appraises the business and loan purpose, and if its assessment is favourable, the Bank applies to DBN for funding.

3. If DBN approves the loan, DBN will disburse to the Bank for on-lending to end borrowers.

SEE ALSO: Apply for Bank of Industry Limited (BOI) Loan 2021

Development Bank of Nigeria Interest Rate

DBN loan offers flexible interest rates that are based on tenure and referenced to market rates.

How many years do I have to pay back the loan?

Depending on the nature of your business and loan purpose, you may have up to 18 months moratorium on principal repayment for working capital & investment projects, and up to 10 years to repay the loan.

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About the Author: Sam Oluwarantimi

Interpersonal Communication Specialist & Graduate (Biology), Obafemi Awolowo University. Join me on Twitter.

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