How To Get A Loan From The Development Bank of Nigeria

In the dynamic landscape of Nigeria’s business sphere, obtaining financial support is crucial for the growth of small and medium-scale enterprises (SMEs). Fortunately, the Development Bank of Nigeria (DBN) stands out as a reliable source for loans, offering a unique opportunity to address the financial challenges faced by business owners. In this comprehensive guide, we’ll delve into the operations of the Development Bank of Nigeria, eligibility criteria, the loan application process, and essential details to empower entrepreneurs seeking financial assistance.

About The Development Bank of Nigeria

The Development Bank of Nigeria is a pioneering initiative by the Federal Government, developed in collaboration with global partners. Established to support small and medium-scale enterprises, its primary goal is to alleviate financial constraints faced by business owners. The DBN achieves this by providing finances and partial credit guarantees to eligible financial intermediaries.

Eligibility for DBN Loan

Small and medium-scale enterprises are eligible to access loans from the DBN, with funds and risk-sharing guarantees channeled through approved financial institutions. To facilitate this process, the DBN has partnered with 10 commercial banks and 15 microfinance banks, serving as intermediaries for loan disbursement.

List of Commercial Banks Offering DBN Loans:

1. Access Bank PLC
2. Ecobank Nigeria PLC
3. Fidelity Bank
4. FCMB Limited
5. First Bank Nigeria Limited
6. GTBank Nigeria
7. Stanbic IBTC Bank PLC
8. Sterling Bank PLC
9. Union Bank of Nigeria
10. Wema Bank PLC

List of Microfinance Banks Offering DBN Loans:

1. AB Microfinance Bank Ltd
2. Addosser Microfinance Bank
3. Baobab Microfinance Bank
4. Bosak Microfinance Bank
5. HALAL Microfinance Bank
6. Infinity Microfinance Bank Ltd
7. Nirsal Microfinance Bank
8. LAPO Microfinance Bank Ltd
9. MainStreet Microfinance Bank Ltd
10. NPF Microfinance Bank Ltd
11. Parallex Microfinance Bank
12. Seedvest Microfinance Bank
13. Accion Microfinance Bank Ltd
14. La Fayette Microfinance Bank Limited
15. Davodani Microfinance Bank
16. Trust Microfinance Bank

Getting A Loan From The Development Bank of Nigeria

Obtaining a loan from the DBN is a streamlined process that involves three key stages:

1. Visit a Bank: Entrepreneurs can approach any of the listed commercial or microfinance banks to express interest in a DBN loan.
2. Indicate Interest: The bank assesses the purpose and motive behind the loan application. Successful applicants proceed to the next stage, where the bank applies to the DBN for funding.
3. Get Your Application Approved: The DBN reviews and approves the loan for disbursement. Commercial banks and other financial institutions then act as intermediaries, facilitating the transfer of funds from the DBN to the borrower.

Loan Repayment Terms

The repayment timeline is flexible and depends on the nature of the business and the purpose of the loan. The DBN offers up to 18 months moratorium on principal payment for working capital and investment projects, with a maximum repayment period of 10 years.

Interest Rates

The Development Bank of Nigeria provides competitive and flexible interest rates, aligned with market rates and loan tenure.

Conclusion

the Development Bank of Nigeria serves as a strategic partner for SMEs, offering a distinctive advantage with its extended repayment duration. Unlike traditional commercial banks that often provide short-term loans, the DBN focuses on empowering businesses for long-term success. Entrepreneurs seeking financial support can leverage this opportunity to fuel their growth and contribute to the economic development of Nigeria. Unlock the doors to business success with a Development Bank of Nigeria loan!