List of UBA SME loans, benefits, features, and requirements
July 16, 2021
UBA SME loans were created to assist various businesses with a possible financing option that will aid the smooth operations of day-to-day activities.
You cannot underscore the fact that financing is a vital and basic necessity for every business, UBA is aware of the difficulty several businesses are going through in the post-Covid-19 and has further devised a way to help cushion the effect by designing a facility that targets the Small and Medium enterprises.
Given this, the bank painstakingly identified key economic drivers to further target the below classes of loans,
- Working capital
- Asset finance
- School loans
- Health loan
- Yong entrepreneur finance
- Creative industry finance
- Development Bank of Nigeria
- Trade finance
- Agri-Business Small and Medium Enterprise Investment Scheme (AGSMEIS)
Working capital loan
This loan is targeted at business owners who are looking to meet their cash flow needs and expand their businesses.
Customers in this category can access up to 50 million nairas, however, it requires flexible collateral subject to/ with recourse to the loan amount and the nature of business a customer operates.
The UBA working capital loan is available for customers with verifiable credit net worth whose cash flow design meets the requirement for lending.
Features of UBA working capital loan
- A customer can access up to 50 million nairas with repayment spread over 12 months, this is to afford such customers the opportunity to expand their businesses at the tenor of this loan.
- For businesses owned and run by women, there is a special interest rate concession. This is aimed at encouraging more women participation in business
UBA asset finance
Asset financing here is a loan type availed to businesses who wish to expand their boundaries by acquiring more assets.
These assets could be land, buildings, machines, etc.
Read also: Introducing the Polaris Health Sector Loan
Asset finance loan is open for SMEs as follow.
- Food and drink
- Wholesale and retail trade
- Entertainment and recreation
- Professional firms and service providers
- Educational institutions, etc.
Features of UBA asset finance
Minimum loan amount of 4b million nairas, however, items purchased could be aggregated to make up the minimum obligor limit subject to a single item value of N500, 000
With a loan maximum of N50 million naira.
- Loan application form
- Copy of Pro-forma invoice from an approved vendor
- Irrevocable domiciliation of business proceeds with UBA
- Executed bill of sale for assets financed
- Offer letter executed
- Evidence of minimum equity contribution of 30%
UBA school loan
If you own or run a private school and want a medium to long-term facility targeted at meeting working capital, asset, and mortgage requirements, the UBA school loan will do just that.
For the school loan, you have a window for; a 4-month time loan, a 3-year asset finance loan, and a 10-year mortgage loan.
Short term loan
Up to 12 months
Access up-to N5 million
Up to 3-year
Access up to N20 million
Up to 5-year
Access up to N100 million
- With a school loan, you can meet the requirement for expansion, and asset procurement with a moderate loan.
- Financing various school projects with this fund is easy
- Growth of the school is inevitable
- Documents evidencing school registration with the regulatory body
- Letter of undertaking by the school proprietor to domicile all business proceed over the facility tenor payment mandate
- Letter of request written by the applicant
- Duly completed KYC form
UBA health loan
If you run a registered hospital, pharmacy, medical laboratories, diagnostic center, optical and dental clinics and need finance for business expansion, upgrade, and procurement of equipment, this loan will be ideal for you.
Short-term loan – You can get N5 million subject to the existing cash flow of the business for a tenor of 12 months.
Term loan – For property expansion and asset acquisition based on the existing cash flow of the business you can access N50 million.
Young entrepreneur finance
As a young entrepreneur in Africa, this product is meant to support you if you have vibrant and bankable business ideas.
This product is targeted at young entrepreneurs across Africa who are at least 18 years old with business ideas that have strong potentials for growth.
- You will receive a maximum limit of $50,000 and $5,000 or their naira equivalent.
- The loan has a maximum tenor of 7 years with a 6-month moratorium for start-up businesses.
UBA gives businesses a temporary overdraft that ensures they have access to cash which can be deployed in emergency expenses.
Overdraft serves as a short-term credit facility where funds are borrowed for up to 30 days, interest is however charged.
UBA creative industry finance
This is a loan supported by the Central Bank of Nigeria, with this loan you can access up to N500 million naira with an interest of 9% annually.
Money borrowed has up to 10 years of repayment flexibility.
This is a financial aid where UBA links Nigerian importers, exporters, or trading companies to international markets with the aid of trade finance solutions.
Two major products offered in trade finance are
- Letters of credit and
- LC discounting finance
This refers to the Agri-Business Small and Medium Enterprise Investment Scheme, which is an initiative designed by the Central Bank of Nigeria to support agricultural businesses.
You can borrow up to N10 million naira and payback within 7 years and attracts an interest rate of 5% per annum.
It’s noteworthy that there are expected requirements for each of the above-listed UBA SME loans, however, you should meet certain basic requirements on a separate cadre.
Documents evidencing regular income, running a viable business, and sound credit history cannot be undermined.
Other requisite materials for qualification include,
- A duly registered business name
- You should have a corporate business account
- You ought to have been in business for 1-3 years before asking for a facility
- Your Credit Bureau Report must be sound
- You must have an active and functional account to access the UBA SME loan.
How to apply for a UBA SME loans
Loan applications could be made on various channels set by the bank, while you may choose to visit a branch for this purpose.
It’s necessary to understand the need to keep a checklist of necessary materials for a loan application, which includes but is not limited to the below as deemed necessary by the bank.
- A UBA SME loans application form duly completed
- Your company profile
- Working cash flow
- Statement of bank account at least for the past 12 months
- Your audited financial account record
- Certificate of incorporation of business with CAC
- Proof of address
- Valid means of identification
- Collateral must be detailed, etc.
UBA loan code *919*28#
This can be referred to as click credit, a loan facility offered to salary earners who have their salary accounts domiciled with UBA.
You can access a loan of up to N1 million naira and a minimum of N50,000 at a 24% interest rate annually deducted at 2% monthly from your salary account and easily pay back over 12 months.
To apply for this loan from your registered phone with the bank dial *919*28# which is referred to as the UBA loan code.
You can also apply on the UBA Mobile app or internet banking.
Read also: How to access AB Microfinance Bank loan
To be eligible for this loan apart from having your salary account domiciled with UBA, you must have received at least N250,000 monthly through the bank for the last six months at least.
Uba no wahala loan – This is a loan created by UBA to assuage the impact of Covid-19 on employed customers. It’s a low-risk loan obtained on confirmation of an employee by the employer.
To access the UBA SME loans, it’s duty-bound to understand basic requirements for each of these facilities as that will enhance your chances of accessing a loan without going through difficulty.
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