Bank of Industry (BOI) Reopens Loan Application Portal

The Bank of Industry (BOI), as the name implies, is a governmental-owned bank that began as a portion of what is coined as a financial body known as the Nigeria Industrial Development Bank Limited in 1964.

It was established with the goal of financing business owners, entrepreneurs, and those looking to expand their business to the next level.

More than two (2) million of authorized disburse capital was issued to the Nigerian Industry Development Bank Limited, which also entailed the involvement of the international finance corporation, with which 75% of the capital share was majorly allocated to, and as such didn’t make it available for small-medium enterprises and other places where it could have satisfied customers.

However, in order to address this limited reach to all those in need of government assistance to grow their businesses, the Bank of Industry was reintroduced in 2001 with a capital share of 250 billion naira, along with a portal through which loan applicants could easily access it.

Bank of Industry Reopens Loan Application Portal

Although there has been shutdown of the portal for a long time, which makes loan seekers go through stress while applying from other financial sectors, but guess what, the government has again reopened the BOI for 2022/2023 applicants with the assurance of giving its loan seekers a loan worth more than 22 billion Naira as proof of their preparation to encourage Nigerian business individuals, especially at this period where the country’s economic system is drastically dropping.

To avoid being left behind, it is important to understand their application requirements as well as other relevant characteristics to possess as their intended loan seekers before applying for the loan.

Requirements for BOI loan

From this article, we are aware that the BOI was created to assist new and existing business organizations, such as corporations and other industries.

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Intending loan seekers from the large governmental loan sections should have the following eligibility while bagging into BOI for a loan:

  • Established marketable financial instrument
  • Have a legal mortgage on landed property
  • Ensurance of Bankguarantee
  • External guarantors whose net worth is known or stated
  • Official awareness of application as a formal letter
  • Photocopy of certificate of incorporation
  • Presentation of a well-recognized and made feasibility study
  • Some copies of passport
  • Company, organizational structure, and management
  • Finally, as a business, three years of most recent tax clearance is also needed.

Note: In general, applicants for BOI loans worth about 22 billion Naira are expected to have a standard progressive business or create a profitable business that will allow them to easily refund the payment. If for a project, such a seeker must have a wealthy means of income to make the loan repayment on time.

Meanwhile, go to https://apply.boi.org/ for an application and more information on additional application requirements.

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Is the BOI loan for everyone?

The answer to this is “no.” This is done to ensure a quick refund and build confidence in each other. So, therefore, the bank is confident in lending their loan only to companies or financial enterprises that are well recognized and have obtained their business registration number either as a limited liability company or a company while having a business name as an enterprise before fully applying for the loan.

And to point out the bank’s objective toward established companies, which is to ensure such companies which have obtained their loan are both materially and manpower stable. The same is done for business owners.

Aside from that, the bank disregards the assistance of financing land and buildings that are subject to equity. In addition to the above inscription, the bank encourages their borrowers who seek a loan of less than 5 million to access it with banks they have partnered with as SME-friendly banks, as stated interest is required while refunding the loan primarily about 6% of its value.

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The method of loan disbursement

From the beginning of this, we understand the two categories of individuals expected to access BOI, which is either as a company, in which case BOI’s reason for lending out remains for the purpose of improving the company’s operational equipment, which therefore makes it possible for BOI personnel to make the purchase of the equipment with the seller rather than forwarding the loan straight to the company management as per policy demand.

And to small business enterprises, which are welcome to apply through its portal for a loan ranging from 5 million naira and above. Anything less than 5 million should be done with other banks of industry partners, majorly with the microfinance bank of Nigeria, where they are linked as well.

Type Of Collateral Needed

It is no longer news that banks with such great offers as loans could need their applicants to present worthy assets that are worth the amount of loan they are hunting from the bank, asset know as collateral.

That does not exclude the Bank of Industry, which also goes to the point of stating the expected net worth of their loan seekers’ external guarantors when it has to do with loans of not more than 10 million, mainly for SMEs.

Finally, on this, both the third party and Collateral can also be presented where the borrower has a shortage of assets that can’t meet his/her required amount of loan.

What becomes the faith of a startup business?

Are you a new or aspiring business owner interested in obtaining a loan from this bank but unsure how to proceed? Don’t worry, these are simply things to know:

  • Gather business information about the business
  • Have some Competent workers
  • Establish a strong management structure and a lively team.

The bank also set its risk acceptance criteria, which is applicable to start-up businesses also, and as it goes, this requires borrowers to present the intending business with a three years’ track record for acceptable performance.

Source: Nyscinfo.com

Updated: June 17, 2022 — 8:08 am

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Humphery

Humphery is a seasoned internet entrepreneur and a life coach. He has been the Nyscinfo ambassador since 2017. He is knowledgeable enough to guide you. Keep following this website for updates, we love you!