This is a major financial agency in Nigeria that is in charge of providing long term financial aid to several organizations in the country as a means of developing the Nigerian economy.
This financial agency has the authorization to give out financial support for the creation and management of small, medium and big projects, not just this, the agency also renders financial assistance for the enlargement, modernization, and diversification of businesses that already exist. It further helps to resuscitate dying businesses through its finance scheme.
Majorly, The bank of industry renders help to enterprises that are involved in the manufacturing and processing of goods. Other sectors that can benefit from the offers of The bank Of Industry are Oil and gas, creative industry, Agro-processing, Information Technology, and solid minerals.
This institution is considered the oldest and biggest financial body in the country. Initially, it was incorporated in the year 1964 with the name Nigerian Industrial Development Bank (NIDB) but in the year 2001, this industry was restructured and the name -Bank Of Industry was given to it.
The restructuring of NIDB was an intentional effort by Nigeria’s Federal Government and it was done to put the institution in a focused state to be able to perform its duties in a more efficient and effective way.
The headquarter of the bank is in Lagos and it has several outlets in virtually every geo-political zone in the country.
One of the notable projects done by this bank is the 10 billion Naira Youth Entrepreneurship Program also known as YES. This program was carried out in order to help youths start-up businesses.
Support loans were given to many Nigerian youths who qualified for this empowerment scheme.
What You Need To Be Eligible For This Loan
Check through the guidelines below to find out if you are eligible for this loan offer
1. Small, medium, scale businesses, also large busineses.
1. First, your business should fall into the small, medium, or large scale business category, and that should exclude cottage.
2. As stated earlier, the business you want to acquire this loan must be a new business or an existing one that needs enlargement or diversification.
3. You need to have rich and reliable promoters who will be asked to show their loyalty to your project by giving out a minimum of 25% of the total cost of the project, meanwhile, this should not include land.
4. The business you intend to borrow this money for must have a good reputation, a good management capability, and a clean financial history.
5. As you apply you must have proof to indicate that you can pay back the loan on time.
6. You must not have a record of any deficit from other banks, your financial history must be clean.
Project Selection Criteria
The projects that BOI provides support funds for are projects that have a high tendency of creating job opportunities, projects that are capable of alleviating poverty, and projects that can help in the development of the country.
So the following are some of the features of the kind of project BOI endorses and supports:
The project is capable of adding to industrial output at a high speed.
Projects that make great use of domestic raw materials.
Projects that can be of high advantage to the Nigerian economy
Projects that are technically possible, economically desirable, and commercial reasons.
Businesses that are friendly to the environment
Projects that are majorly promoted by Women.
Existing Businesses that have a proper accounting strategy and good management set up.
Other subsectors that are given high priority by BOI in the process of project selection are:
1. Businesses that have to do with solid minerals
2. Information communication technology (ICT) services.
3. Projects that have to do Agriculture
4. Businesses that are involved in the manufacturing of Textile and leather polymer.
Criteria For Loan Application/Applicants
If you intend to Access Loans From The Boi, the following are criteria that you must
1. First, you need to provide collateral that has a 150 percent value of the loan you want to apply for.
2. You must write and submit a formal letter of application.
3. Make and submit Photocopies of your business’ Certificate of Registration.
4. You should make and submit photocopies of the original memorandum and Articles of Association documents of the Company.
5. Make 4 copies of your company’s Feasibility Study Report
6. Submit not less than 2 quotations from distinct sources for items of equipment.
7. You must submit the document containing at least three (3) years’ most recent Audited Accounts of your existing company.
Other Important procedures/criteria that have to do with the organizational structure and management of the company include:
1. You should be able to present a minimum of three (3) year Tax Clearance Certificate of your Company.
2. You must make available on request, two directors from your existing company with 8 passport photographs of these two directors. Your company secretary too must be available on request.
3. You must be able to present a completed copy of the Bank of Industry Questionnaire which you must have filled previously.
4. Make available on request the document containing the declaration of your company’s total outstanding liabilities.
5. You must be able to present your company’s Statement of Account for the past six months.
kindly visit the official website of the Bank Of Industry to get other information on the list of criteria.
How To Apply For BOI Business Loans
1. The first thing to do is to open the BOI website or locate any of the BOI outlets in your geopolitical zone.
2. Get a questionnaire form from the bank officer, fill it completely, and then submits it back to the bank.
Be aware that the bank of the industry has a good reputation and is held in high regard in the country and so this institution has a zero-tolerance system for fraudulent acts and corrupt activities.
Also, it is essential for you to understand that BOI is not just a financial institution that provides solutions to the financial problems of your business, they are also interested in the proper growth and development of your enterprise.