The bank of industry is a development finance institution in Nigeria which targets businesses that engage in manufacturing and processing activities. Target sub-sectors of BOI include Agro-processing, Solid Minerals, Information Technology, Oil and Gas and Creative Industry. However, Bank of industry mostly finances enterprises or companies and not an individual person or group of persons; this implies that companies or enterprises being financed are duly registered with CAC, have simple financial records, have experience in the value chain and tax compliant.
The bank is principally set up to finance industrial equipment used in manufacturing. The Bank does not finance land and building which are expected to be financed from equity. The bank does not disburse the loan to the borrower in cash but to the vendors and suppliers of the equipment. BOI’s loan support to the SME starts from N5 million.
As part of the fiduciary responsibility in managing funds under its care, Bank of industry requires that you pledge some assets to secure your loan. However, the Bank also accepts other forms of security subject to adequate coverage of the loan being provided to you.
Types of security the Bank accepts include:
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- Legal mortgage on a landed property. The property must be duly registered with a Certificate of Occupancy
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- Debenture on assets of the company
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- Bank Guarantee
- External Guarantors with Notarized statement of Networth for loans below N10 million.
Please note that the Bank is willing to share assets previously pledged to other lenders provided the Bank’s loan is adequately covered in the arrangement. Also note that the Bank is willing to accept third party collateral.
Startup businesses
While the Bank under its general risk acceptance criteria requires a prospective borrower to have at least three years acceptable performance track record, it can also lend to start-ups at its discretion and on a case-by-case basis. A startup would need to provide proof of cognate experience in its business area and would need to have a highly qualified management and operational team with sound management structure.
List of Product Cluster financed by BOI
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1 Adire (Tie and Dye)/Aso Oke
2 Animal Feeds 3 Aquaculture 4 Bakery 5 Blocks and Interlocking Stones 6 Ceramics & Tiles 7 Cosmetics/Hair Products 8 Dairy 9 Digital Printing/Multimedia Publishing 10 E-Commerce/Information & Communications Technology (ICT) 11 Fashion/Garmenting 12 Fish Smoking/Drying 13 Food Processing (comprising processing of agricultural products) 14 Foundries/Metal Fabrication/3-D Printing 15 Furniture/Wood Processing 16 Gemstones 17 Greenhouses 18 Laundry and Dry Cleaning 19 Leather/Footwear 20 Liquefied Petroleum Gas/Compressed Natural Gas 21 Meat Processing 22 Mechatronics 23 Health Care (Medical Diagnostics Laboratory/Orthodontist/Ophthalmology/Physiotherapy) 24 Movie Production (Nollywood) 25 Plastics 26 Quick Service Restaurants 27 Quarries 28 Recycling 29 Solar (off grid) 30 Technical/Vocational Schools (Offering City & Guild Certificate) 31 Water/Beverage Packaging 32 Theme Parks 33 Water Transportation 34 Light Manufacturing (Paper, Roofing Sheets, lube blending, Paints etc.) While applying for loan you will need to support your application with the following documents;
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