How to access Development Bank of Nigeria loan
Development Bank of Nigeria- Are you a business owner, have you been struggling to get you business growing because of financial constraints, do you need more funding to move your business higher, if any of the above applies to you then read this guide with intense concentration to the end.
Development Bank of Nigeria (DBN) is an idea of Federal government of Nigeria in collaboration with global development partners to address the major financing challenges facing the Micro, Small and Medium Scale Enterprises (MSMEs) in Nigeria.
In partnership with DBN for this project are:
- World Bank (WB)
- African Development Bank (ADB)
- KfW Development Bank
- French Agency for Development (AFD) and
- European Investment Bank (EIB)
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The major objectives of this group is to alleviate financing constraints faced by MSMEs and Small Corporates in Nigeria through the provision of financing and partial credit guarantees to eligible financial intermediaries on a market conforming and fully financially sustainable basis.
In essence, they tend to make finances and funds readily available to small business owners which in turn will deepen financial inclusion in Nigeria towards a better standard of living and economic prosperity.
“In Nigeria, there are over 37 million Micro, Small and Medium Enterprises (MSMEs) contributing to over 50% of Nigeria’s GDP. However, less than 5% of these businesses have access to credit in the financial system.” According to statistical data.
Relatively, MSMEs in Nigeria play a vital role in economic growth, poverty reduction, employment creation and shared wealth creation.
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DBN is playing a focal and catalytic role in providing funding and risk sharing facilities, it will as well incentivize financial institutions, predominantly Deposit-Money and Microfinance Banks, by augmenting their capacity and by providing them with funding facilities designed to meet the needs of these smaller clients.
To make this guide even primarily educating, I will address the following points among others:
- Development bank of Nigeria interest rate
- Development bank of Nigeria office
- How to apply for Development Bank of Nigeria (DBN) loan
- DBN loan application form
- BDN loan interest rate
- Requirements for DBN loan
- DBN Abuja
REQUIREMENTS AND CRITERIA TO GET A DBN LOAN
Every loan scheme will always have basis and qualification to access such loan, otherwise it will be abused, as funds are often times not used for the soul aim which they were accessed.
In view of this, DBN loan can only be accessed by clients who meet its criteria in the following arrangements,
All MSMEs (start up or existing) involved in productive enterprises are eligible for the loan, but they must be customers of eligible financial institutions.
This means that you must have been banking with any credible Nigerian bank or other financial institutions/Microfinance Banks as deemed fit by the provision.
DBN will disburse funds through Participating Financial Institutions (PFIs) in this project.
Here are the Participating Financial Institutions:
Access Bank Plc, Diamond Bank, Ecobank Nigeria, Fidelity Bank, FCMB Ltd, UBA Plc, Wema Bank Plc, AB Microfinance Bank, Addosser Microfinance Bank, Baobab Microfinance Bank, HASAL Microfinance Bank, Infinity Microfinance Bank, Mainstreet Microfinance Bank, LAPO Microfinance Bank, Macrocred Microfinance Bank, NPF Microfinance Bank, Parallex Microfinance Bank and Seedvest Microfinance Bank.
HOW TO APPLY FOR DEVELOPMENT BANK OF NIGERIA (DBN) LOAN
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I will explain the procedures in this loan application that even a 10 year old will understand and implement to get this loan, if age ever permits.
- Visit your bank as mentioned in the Participating Financial Institutions (PFI) in Nigeria above, either Commercial or Microfinance Bank as the case may be. Indicate that you want to apply for a DBN Loan.
- The bank in turn appraises the business and loan purpose, and if its assessment is favourable, the Bank applies to DBN for funding.
- If DBN approves the loan, DBN will disburse to the Bank for on-lending to end borrowers. That’s all.
DBN loan differs from other Commercial Banks loan in the sense that it is specifically targeted at small business to ensure that such businesses have increased access to financing.
In addition DBN loans have a longer tenure than other commercial loans, which are usually short term.
The loan repayment tenure is however very flexible with up to 10 years and moratorium period of up to 18 months.
DEVELOPMENT BANK OF NIGERIA (DBN) LOAN INTEREST RATE
DBN offers flexible interest rates that are based on tenure and referenced to market rates. This is probably why you should seek to access it at all means.
DEVELOPMENT BANK OF NIGERIA LOAN OFFICE AND CONTACTS
Head office: The clan Plaza,Plot 1386A Tigris Crescent, Maitama, Abuja, Nigeria
Call: +234-9-904-0000, +234-811-3841-699
Lagos Office: Plot 952/953 Idejo Street, Victoria Island, Lagos, Nigeria
Development Bank of Nigeria loan application forms are obtainable at the Participating Financial Institutions (PFI) as recommended by DBN. What are you waiting for, kindly visit any of the approved financial institutions and commence your registration. For more questions and enquiry, use the comment box and good luck.
Raphael is a seasoned and dynamic writer, with interest in Banking, personal finance, entrepreneurial development. A councillor and motivational speaker.