If you have innovative ideas but a lack of capital is making it difficult for you to bring your business to life, let’s show you how to obtain business loan from Development Bank of Nigeria.
Morethan 37 million MSMEs — an acronym for Micro, Small and Medium Enterprises — areavailable in Africa’s largest economy, contributing to over 50 per cent ofNigeria’s gross domestic product (GDP). But less than 5 per cent of thesestartups can be said to enjoy adequate access to credit in this country’sfinancial system.
Whenconsidered collectively, MSMEs represent the largest employers in severallow-income nations around the world, with Nigeria also included; in spite ofthat, their viability is facing a threat occasioned by a lack of access to risk-managementtools. Such tools include savings, insurance as well as credit. Without anymodicum of doubt, MSMEs growth in Nigeria is often stifled by limited access tocredit, equity, in addition to payments services.
Ifyou are one of such businesses grappling with this problem, here is how toobtain business loan from Development Bank of Nigeria.
What Is the Development Bank of Nigeria?
The DevelopmentBank of Nigeria was established by the Federal Government of Nigeria in2017 in conjunction with global development partners in a bid to tackle theprimary financing problems that MSMEs in this country contend with.
Theoverarching objective is to get rid of financing constraints that MSMEs &small corporates are facing in Nigeria via the provision of financing as wellas partial credit guarantees to financial intermediaries that qualify for suchon a market-conforming & 100% financially sustainable basis.
Who Is Eligible For This Loan?
- Ifyou’re an entrepreneur in Nigeria, you’re eligible for a DBN loan
- Startupsare eligible
- Businessmen& women can also apply
- Ifyou own a medium/small scale business, you can obtain a loan from DBN as well
How Is a Loan/FinancingOffered?
The Development Bank of Nigeria doesn’t directly give you a loan. Instead, it is offered via banks, via microfinance banks, and via various financial institutions. All the banks, microfinance & other institutions giving this loan are referred to as Participating Financial Institutions (PFIs).
Therefore,you can’t go directly to the DBN; you are required to utilize a channelvia any of the Nigerian banks or other PFIs.
Allthe DBN does is to give the money to the banks; it is now the banks thatprovide the loan to anyone, who is in need of it. In the below section, we havelisted the names and direct contacts of all the participating banks and otherPFIs from which you can get the loan.
All the Participating Banks &Institutions with Their Contact
In thissection, we offer a list of all participating banks, micro-finance banks, andfinancial institutions from which you can get a DBN loan. We have alsoincluded their contact is also here just in case you want to reach out to them.
| Diamond Bank Plc. | Ayodele Olojede – aolojede@diamondbank.com |
| Ecobank Nigeria Bank Plc. | Nelson Paseda – NPASEDA@ecobank.com LAWAL Theresa – TOLAWAL@ecobank.com |
| Fidelity Bank Plc. | Osaigbovo Omorogbe – osaigbovo.omorogbe@fidelitybank.ng |
| FCMB Ltd. | Oluwaseun Adetiba – Oluwaseun.Adetiba@fcmb.com Oluremi Agboola – Oluremi.Agboola@fcmb.com |
| UBA Plc. | Adegoke Bayo – bayo.adegoke@ubagroup.com |
| Wema Bank Plc. | Dotun Ifebogun – dotun.ifebogun@wemabank.com |
| AB Microfinance Bank Nigeria Ltd. | Nnadozie Joseph – nnadozie.ohaji@ab-mfbnigeria.com |
| Addosser Microfinance Bank | Olusola Howells – howells.olusola@addosser.com |
| Baobab Microfinance Bank | Achenyo Oyibo – aoyibo@baobab.bz |
| Bosak Microfinance Bank | Toyin Peters – toyinpeters@bosakmfb.com |
| Infinity Microfinance Bank Ltd. | Oludotun Adewunmi – g.adewunmi@infinitymfb.com |
| LAPO Microfinance Bank Ltd. | Efosa Aigbe – efosa.aigbe@lapo-nigeria.org |
| Microcred Microfinance Bank Nigeria Ltd. | Omar Niaz – oniaz@microcred.com |
| NPF Microfinance Bank Plc. | Jude Ohanehi – jeco0072000@yahoo.co.uk |
WhatYou Are Required to Do Before You Can Obtain the Loan
In order to obtain the loan or financing, you have to open an account with the banks, microfinance bank or other participating institutions, which you want to use to get the loan.
Thisis an essential requirement as without an account with any of them, you willnot be offered the loan.
Let’snow discuss how to obtain business loan from Development Bank of Nigeria.
Steps to Obtain DBN Loan orFinancing
- Visit your bank or any institution near your location: You have to start by visiting a bank or financial institution and let them know that you would like to apply for a loan from the Development Bank of Nigeria. As stated earlier, your bank, microfinance or any other PFI you plan to use has to be part of those giving the loan.
- The Nigerian bank or other institution will then interview you: In the next stage, the bank or any other PFI you chose will request for your purpose of obtaining the loan. As part of the interview, they will ask you other relevant questions. You need to provide a solid reason for requesting the loan. Such reasons could range from opening a business to expanding your business, etc.
- PFI will carry out an assessment: The next thing after you have been interviewed is that the bank or any other PFI you use will decide from the information you gave them if it will offer you the loan. They may request to carry out an assessment of your business.
- PFI Applies to the Development Bank of Nigeria for loan: If your bank or micro-finance bank finds your purpose for asking for the loan genuine, they will now apply to the DBN for funding.
- DBN approves your loan: If the Development Bank of Nigeria approves your loan, they’ll send the money to the bank or any other PFI you are using.
- The bank will forward the loan to you: The Bank or PFI will now send the loan to you.
Thoseare all the steps to obtain business loan from Development Bank of Nigeria.
What Is the Interest Rate?
Theinterest rate for a DBN loan is the best in Nigeria, and this should not besurprising as it was specifically established to serve the purpose of providingcredit facility for MSMEs.
Manyfactors determine the interest rate of a specific loan, with one of them beingthe duration the loan is needed for.
Repaying the Loan
TheDevelopment Bank of Nigeria gives an excellent timeline to repay loans.You are allowed to pay back from 18 months (one and a half years). You may eventake up to ten years to pay back.
However, there are a number of factors determining when you can repay, and they include the kind of business you have, as well as your purpose for requesting the loan.
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What Is DBN CollateralRequirement?
TheDevelopment Bank of Nigeria collateral requirement varies from one person to theother. After your bank, or other PFI you are using, has interviewed you to knowwhy you need a loan, based on the information they gathered, they’ll decide thebest requirement that will be used for a collateral.
Insome instances, the financial institution will request to visit your businessfor an assessment, and this could significantly determine what your collateralrequirement will be. Additionally, another factor that may also affect yourcollateral requirement is the amount of money requested.
Whenit comes to a fixed collateral requirement, there is none. What is used as acollateral for your DBN loan is determined on a case-by-case basis and could beat the discretion of your bank or micro-finance bank, based on their riskassessment.
Contacts of the DevelopmentBank of Nigeria
Ifyou have any question or need to lodge a complaint about your bank concerningobtaining a DBN loan, you can contact the DBN.
TheDBN headquarters is the head office in Abuja, and its addresses is, theClan Place, Plot 1386A Tigris Crescent, Maitama, Abuja, Nigeria.
Lagosoffice address: Plot 952/953 Idejo Street, Victoria Island, Lagos, Nigeria.
DBNphone number: +234-811-3841-699 and +234-9-904-0000.
Emailaddress: info@devbankng.com
DBNwebsite: devbankng.com
DBN Partners
Apart from being a body created by theFederal Government of Nigeria, the DBN also has a number of internationalpartners which support the loan programs. The partners are listed as follows:
- TheWorld Bank
- TheAfrican Development Bank (AfDB)
- TheEuropean Investment Bank
- The Agence Française de Développement (AFD)
- KfW –a German government-owned development bank
In a Nutshell
Having perused thisguide on how to obtain businessloan from Development Bank of Nigeria, you are now armed with the relevantinformation on getting that much-needed capital for your business. What you nowneed to do is to take the bold step and apply!
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