Do you have a company or do you manage one? Maybe you would want to acquire some equipment to increase your production. If you are in agreement with the above, then read on. In this article, you will learn everything you need to know about Bank Of Industry Loan. You will know how to apply and what you are required to have before you can apply.
The Bank of Industry loan is not for individuals. It is strictly for registered industries, preferably in the manufacturing and processing industries. The disbursement of the loan is also not done by giving you the loan cash. Rather, BOI acquires the equipment you want themselves for the company.
Bank of Industry offers two classes of loan: Micro Credit loan and SME/Large Enterprise loan. Their requirements also differ and they are below listed.
- A formal Letter of Application for loan.
- A clear photocopy of Certificate of Registration.
- For Cooperative societies, a Constitution and Bye-laws of Cooperative Society.
- Your Business Plan
- Four recent passport photographs of the the business owner.
- The photocopy of the Current Tax Clearance Certificate of the Business Enterprise and the business owner.
- Photocopy of valid means of identification such as International Passport or Driver’s License or National Identity Card of the business owner.
- A bank Statement of the Business Enterprise for a period of 1 year (for an already established business).
- The sales record for 6 months and operating expenses.
- An evidence of availability of Collateral Security which could be a landed property, Individual Guarantor, and so on.
- A formal Letter of Application for loan.
- The photocopies of Certificate of Incorporation and Certified True Copy of Memorandum and Articles of Association of the Company.
- The photocopies of the Certified True Copy of Forms C02 and C07.
- Your business plan.
- The photocopy of title documents to project site ie Statutory Certificate of Occupancy or Deed of Assignment.
- The photocopy of Title Documents ie Statutory Certificate of Occupancy or Deed of Assignment to the Collateral Security (which must be a landed property in an urban center).
- An approved Building Plan if you are applying for new building.
- The bill of quantities or you contractor’s estimate of cost to be incurred on building of factory.
- Reports of valuation on factory building(s) (for already existing projects) and that of the property offered as Collateral Security.
- The quotations for items of plant and machinery. At least 3 quotations from different sources are required.
- 3 years most recent Audited Accounts of the company (for and already existing company).
- 3 years most recent Tax Clearance Certificate for the Company and for 2 Directors.
- Four passport photographs of each of the two Directors and the Company Secretary.
- Finally, the evidence of appointment of a Company.
How to apply
The Bank of Industry loan application is done via the Bank of Industry’s official website application portal https://www.boi.ng/apply/register
You must understand that your business must be registered before you can apply for BOI loan. To to continue with the loan application you must have a registered business. You can register your business with the Corporate Affairs Commission (CAC).
So when you open the application portal, choose that your business is registered. Fill the online application form with valid information and submit.
You will be informed on the next step to take when you have filled the form.
The interest rate on BOI Term loans range between 5% and 10% per annum.
The interest rate on Working Capital loans are 12.5% per annum for SMEs and 15% per annum for Large Enterprises.
Other Popular Banks That Gives Loans In Nigeria:
- Aella Credit Loan
- Renmoney Loan
- Federal Government Empowerment Loan For Entrepreneur
- Dbn Loan Nigeria
- Fairmoney Loan
- Kiakia Loan App
- Snapcredit Loan
- Kwikcash Loan
- C24 Loan
The Bank of Industry provides credit facilities at tenors that range from 12 to 60 months and above. This is so because of the belief that since the loan the Bank is mandated to provide is for the manufacturing sector, which requires a longer time frame from start to profitability, the Bank of Industry structures its loan tenors to accommodate the incubation period of the industries.
Moratorium periods are incorporated in the BOI loan tenors to make easier the repayment of the loan.
Pros & Cons
You can reach the Bank of Industry through the number if you need any help: (+234) 0700-CALL-BOI
|Contact Number||(+234) 0700-CALL-BOI|
Branches & Head Office
The Head Office of Bank of Industry Nigeria is located at: 23 Marina, Lagos. Nigeria