HOW TO APPLY FOR BANK OF INDUSTRY LOAN FOR AGRICULTURE
Bank of Industry loan for agriculture is the major product of Bank of industry, Nigeria. Bank of industry is a development finance institution focused on providing lines of credit for loans for industrial equipment used in manufacturing and agriculture. The Bank is 100% owned by the Federal Government of Nigeria. The bank does not pay the loan in cash to the borrower, but to the vendors and suppliers of the material for which the loan request is intended.
Targeted sub-sectors include agri-food, solid minerals, information technology, oil and gas, and the creative industry. Bank of Industry loan support to SMEs starts at 5 million naira. BOI accepts other guarantees in addition to land ownership.
They are also aware of the difficulty of obtaining certificates of compliance and are actively involved in the defence of affected states.
Start or expand your own business with the help of a government-backed start-up loan. A great alternative for people looking for business loans to finance their start-up. BOI has dedicated time, energy and money to help small businesses thrive.
Some products of Bank of Industry loan for agriculture
- Term loan for SMEs – BOI offers loan products tailored to the business needs of small and medium-sized enterprises (SMEs). SME finance is an affordable financing solution for specific medium-term business projects.
- Working capital loan
- Entrepreneurship fund for graduates
- Government company and training program
- Youth entrepreneurship support program
BENEFITS OF BANK OF INDUSTRY LOAN FOR AGRICULTURE
- Low interest rate
- High loan amount
THE INCONVENIENTS OF BANK OF INDUSTRY LOAN FOR AGRICULTURE
- Numerous documents required
- Loans are paid directly to suppliers
REQUIREMENTS OF BANK OF INDUSTRY LOAN FOR AGRICULTURE
- Legal mortgage on real estate. The property must be properly registered with a certificate of occupancy.
- Obligation on company assets
- Bank guarantee
- External guarantors with notarized equity declaration for loans below 10 million naira.
COSTS OF BANK OF INDUSTRY LOAN FOR AGRICULTURE
- Interest rate on term loans: between 5% and 10% per year.
- Interest rate on working capital loans: 12.5% per annum for SMEs, 15% per annum for large companies
- Appraisal fee: 1% of the loan amount payable on receipt of the loan offer letter. These fees are non-refundable.
- Commitment Fee: 1% of the loan amount payable upon acceptance of the loan offer letter. These fees are non-refundable.
- Final commission: 0.125% on the debit balance of the loan due quarterly.
- Revalidation fee: 1% of the loan amount.
- Credit restructuring commission: 1% of the restructured amount.
- Charges with fine on the unpaid balance at the end of the facility term: 2.5% of the unpaid amount per month.
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