Though securing business Loans in Nigeria may not really be easy, but Development Bank of Nigeria (DBN) has come to make everything easy especially for small and medium business owners.
Small businesses other wise called Micro, Small and Medium Enterprises (MSMEs) have been seen to be the largest employers in many developing Country especially in Nigeria.
This means that in a Country that has a low employment rate, small businesses are always the best option that can help to create employment opportunities and alleviate people from poverty.
This is the reason MSMEs need to be promoted in Nigeria, to help create more employment and increase the country’s Gross Domestic Product (GDP).
In Nigeria today, the number of small businesses is really increasing on daily basis, and many business lovers are still striving to go into one small business or the other.
But the major problem that small businesses are facing in Nigeria is the difficulty in accessing loans, either to start or to expand their small businesses.
Data provided by DevBankNg, revealed that there are over 37 million MSMEs in Nigeria contributing to over 50% of the Country’s GDP; but only 5% of these MSMEs are always able to access loans for their businesses.
This is actually the major problem that Development Bank of Nigeria has come to solve.
- Read Also: How To Raise Capital For Business In Nigeria
What To Know About Development Bank Of Nigeria
Development Bank of Nigeria (DBN) is a financial institution that provides loans or medium/long term financing for small and medium size businesses (MSMEs).
It was established in 2014 by the federal government of Nigeria, collaborating with other domestic and foreign financial institutions like the World Bank, African Development Bank (AfDB), European Investment Bank (EIB), and so on.
Development Bank of Nigeria provides loans on a very flexible form, usually up to 10 years with a moratorium period of up to 18 months.
Also the interest rates of DBN loan are usually on a market-conforming and fully financially sustainable basis.
Nigerian Banks That Collaborate With Development Banks Of Nigeria (DBN)
Inorder to facilitate the disbursement of loans to small businesses, DBN has to work or collaborate with various domestic banks or financial institutions in Nigeria.
This means that for a business owner to access DBN loan for business, they must have to go through any of these commercial banks or micor finance banks as listed below:
- Access Bank Plc
- Ecobank Nigeria Bank Plc
- Fidelity Bank Plc
- FCMB Ltd
- First Bank Nig Ltd
- Stanbic IBTC Bank Plc
- Union Bank of Nig Plc
- AB Microfinance Bank Nigeria Ltd
- Astra Polaris MFB
- Baobab Microfinance Bank
- Bosak Microfinance Bank
- Davodani Microfinance Bank
- FSDH Merchant Bank Micro Finance Bank Ltd
- LAPO Microfinance Bank Ltd
- Mainstreet Microfinance Bank Ltd
- Microvis Microfinance Bank
- NPF Microfinance Bank Plc
- Parallex Microfinance Bank
- Regent Microfinance Bank
- Seedvest Microfinance Bank
- Stanford Microfinance Bank
- Trust Microfinance Bank
Eligibility Criteria For Getting Loan From Development Bank Of Nigeria
Just as stated earlier, loans from Development Bank of Nigeria is mainly for small and medium businesses.
This means that for you to access loans from DBN, it must either be to start up your business or to expand your business.
Having known this, for you to be eligible for this loan, the following criteria must be considered:
- All MSMEs, whether Startup or existing, involved in productive enterprises are eligible to apply for for the loan.
- Applicant must have an account with eligible bank or financial institution in Nigeria, especially as listed initially.
How To Apply For DBN Loan
Applying for the Development Bank of Loan may not really be difficult as you may think, it involves just a simple procedure.
All you have to do is just to:
- Visit your Bank
Just as listed initially in this post, if you have account with any of those banks that collaborate with Development Bank of Nigeria, all you have to do is to visit the bank and tell them that you want to apply for DBN Loan.
- The bank will now access you and your business or the purpose of the loan.
- If you are certified by your bank, the bank will now apply directly to Development Bank of Nigeria for your loan.
- Once DBN approves your loan, they will disburse it to your bank and you will be contacted for it.