What type of bank is the Bank of Industry? How can you get Bank of Industry Loan In Nigeria?
The bank of industry is a private banking company that was founded in the year 1959 and is famous for offering loans.
The name bank of industry has a concrete foundation that took 42 years to build from Investment Corporation of Nigeria Limited (ICON), Nigerian Industrial Development Bank (NIDB), Nigerian Bank for Commerce and Industry (NBCI), and the National Economic Reconstruction Fund (NERFUND).
It is reputed to have 24 branches nationwide with its headquarters located on the street of Marina, Lagos.
Bank of Industry is one of the organizations that gives business grants in Nigeria.
It has four subsidiaries namely:
- BOI-ITC: Bank of Industry Investment Trust Company.
- BOI-MFB: Bank of Industry Microfinance Bank Limited.
- BOI-IB: Bank of Industry Insurance Brokers.
- LECON financial services.
Remember I mentioned earlier that it is famous for bank of industry loans, the question goes thus…
What Is Bank of Industry Loan?
Yes, a loan is a loan. Basically, a loan means something temporary as it has to go back to due owner.
There are two parties involved in a single word, the party giving out and the party receiving, same as the bank of industry loan.
Here, the bank of industry is the one with the money to be loaned while the applicants are the ones the money is loaned to.
It gets more interesting, the bank of industry loan is for Small Medium Enterprises, Limited Liability Companies, graduates, or corps members.
The BOI loan is not paid directly to applicants’ account but to the suppliers of equipment for the project, the loan is requested.
That is right, sadly for some, unlike dialing USSD codes to get loans into your bank account, the bank of industry loan is not the right option.
How to Get Bank of Industry Loan For Agriculture
The green and white coloured cloth we proudly wave on Independence Day is the Nigerian flag.
The green colour that shines so bright in contrast to the white colour stands for agriculture.
Agriculture is an important part of the Nigerian economy that has stood the test of time and fared considerably well compared to oil.
The bank of industry loan for agriculture is known as Cottage Agro Processing Fund, CAP Fund.
This type of bank of industry loan was launched in September, 2014.
It targets limited liability Company, enterprises or cooperative societies that are involved in agriculture, specifically, the conversion of agricultural produce into raw or finished products that can also be exported.
You should also check out this list of top 10 loan apps in Nigeria to get personal loans into your bank account in no time.
What You Should Know About CAP Fund
- The cottage agro processing fund is worth N5 billion.
- 1% total management fee.
- 9% interest rate.
- 6 months moratorium.
- 5 years loan tenor.
- It is for installation of equipments for the project.
Requirements for CAP Fund
- A formal application.
- Photocopy of certificate of registration as issued by the corporate affairs commission.
- Business plan.
- 2 passport photograph of business owner.
- Valid identification card.
- Bank statement of the business for the last 6 months.
- Reference letter from a recognized traditional ruler or an authorized local government official.
- Minimum of 2 external guarantors (check the bank of industry website for eligible guarantors).
- Declaration of outstanding liabilities to other banks and individuals.
- Value and source(s) of raw materials to be purchased. This should be expressed in units.
- Valuation report on existing assets that will be prepared by an accredited BOI valuer.
- Value of the equipment to be purchased (strictly from an accredited BOI supplier).
Steps to Get BOI Loan for Agriculture
- STEP 1: Go through the requirements for the fund and get your documents ready.
- STEP 2: Get a browsing device.
- STEP 2: Visit https://www.boi.ng/apply/register and register.
- STEP 3: Apply for a loan through an accredited business development service provider under BOI as this will increase your chances of getting a loan.
- STEP 4: Wait for approval of the loan.
You can also check out our post on tips about getting student loans
Steps to Get Bank of Industry Loan For Corps Members
The Bank of Industry in agreement with the National Youth Service Corp Directorate launched the Graduate Entrepreneurship Fund on the 5th of October, 2015.
Yes, the BOI loan is one the ways Corps Members can get NYSC loan.
This type of bank of industry loan has its lens fixed on corp members with business plans worth seeing to fruition in the SME clusters.
What you should know about GEF
- The graduate entrepreneurship fund is worth N2 billion.
- Each successful applicant gets a maximum loan of N2 million.
- 9% interest rate.
- 6 – 12 months moratorium.
- 3 – 5 years loan tenor.
For more information, visit https://www.boi.ng/graduate-entrepreneurship-fund.
How to Get Bank of Industry Loan (Summary)
The choking thorns that keep suffocating the life out of almost every hope for employment in the country have weighed some down.
While the resilient ones have created employment for them but one thing has gained popularity as a resort either for corporate or personal reasons, loans including the bank of industry loan.
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