If you have innovative ideas but a lack of capital is making it difficult for you to bring your business to life, let’s show you how to obtain business loan from Development Bank of Nigeria.
More than 37 million MSMEs — an acronym for Micro, Small and Medium Enterprises — are available in Africa’s largest economy, contributing to over 50 per cent of Nigeria’s gross domestic product (GDP). But less than 5 per cent of these startups can be said to enjoy adequate access to credit in this country’s financial system.
When considered collectively, MSMEs represent the largest employers in several low-income nations around the world, with Nigeria also included; in spite of that, their viability is facing a threat occasioned by a lack of access to risk-management tools. Such tools include savings, insurance as well as credit. Without any modicum of doubt, MSMEs growth in Nigeria is often stifled by limited access to credit, equity, in addition to payments services.
If you are one of such businesses grappling with this problem, here is how to obtain business loan from Development Bank of Nigeria.
What Is the Development Bank of Nigeria?
The Development Bank of Nigeria was established by the Federal Government of Nigeria in 2017 in conjunction with global development partners in a bid to tackle the primary financing problems that MSMEs in this country contend with.
The overarching objective is to get rid of financing constraints that MSMEs & small corporates are facing in Nigeria via the provision of financing as well as partial credit guarantees to financial intermediaries that qualify for such on a market-conforming & 100% financially sustainable basis.
Who Is Eligible For This Loan?
- If you’re an entrepreneur in Nigeria, you’re eligible for a DBN loan
- Startups are eligible
- Businessmen & women can also apply
- If you own a medium/small scale business, you can obtain a loan from DBN as well
How Is a Loan/Financing Offered?
The Development Bank of Nigeria doesn’t directly give you a loan. Instead, it is offered via banks, via microfinance banks, and via various financial institutions. All the banks, microfinance & other institutions giving this loan are referred to as Participating Financial Institutions (PFIs).
Therefore, you can’t go directly to the DBN; you are required to utilize a channel via any of the Nigerian banks or other PFIs.
All the DBN does is to give the money to the banks; it is now the banks that provide the loan to anyone, who is in need of it. In the below section, we have listed the names and direct contacts of all the participating banks and other PFIs from which you can get the loan.
All the Participating Banks & Institutions with Their Contact
In this section, we offer a list of all participating banks, micro-finance banks, and financial institutions from which you can get a DBN loan. We have also included their contact is also here just in case you want to reach out to them.
|Diamond Bank Plc.||Ayodele Olojede – email@example.com|
|Ecobank Nigeria Bank Plc.||
Nelson Paseda – NPASEDA@ecobank.com|
LAWAL Theresa – TOLAWAL@ecobank.com
|Fidelity Bank Plc.||Osaigbovo Omorogbe – firstname.lastname@example.org|
Oluwaseun Adetiba – Oluwaseun.Adetiba@fcmb.com|
Oluremi Agboola – Oluremi.Agboola@fcmb.com
|UBA Plc.||Adegoke Bayo – email@example.com|
|Wema Bank Plc.||Dotun Ifebogun – firstname.lastname@example.org|
|AB Microfinance Bank Nigeria Ltd.||Nnadozie Joseph – email@example.com|
|Addosser Microfinance Bank||Olusola Howells – firstname.lastname@example.org|
|Baobab Microfinance Bank||Achenyo Oyibo – email@example.com|
|Bosak Microfinance Bank||Toyin Peters – firstname.lastname@example.org|
|Infinity Microfinance Bank Ltd.||Oludotun Adewunmi – email@example.com|
|LAPO Microfinance Bank Ltd.||Efosa Aigbe – firstname.lastname@example.org|
|Microcred Microfinance Bank Nigeria Ltd.||Omar Niaz – email@example.com|
|NPF Microfinance Bank Plc.||Jude Ohanehi – firstname.lastname@example.org|
What You Are Required to Do Before You Can Obtain the Loan
In order to obtain the loan or financing, you have to open an account with the banks, microfinance bank or other participating institutions, which you want to use to get the loan.
This is an essential requirement as without an account with any of them, you will not be offered the loan.
Let’s now discuss how to obtain business loan from Development Bank of Nigeria.
Steps to Obtain DBN Loan or Financing
- Visit your bank or any institution near your location: You have to start by visiting a bank or financial institution and let them know that you would like to apply for a loan from the Development Bank of Nigeria. As stated earlier, your bank, microfinance or any other PFI you plan to use has to be part of those giving the loan.
- The Nigerian bank or other institution will then interview you: In the next stage, the bank or any other PFI you chose will request for your purpose of obtaining the loan. As part of the interview, they will ask you other relevant questions. You need to provide a solid reason for requesting the loan. Such reasons could range from opening a business to expanding your business, etc.
- PFI will carry out an assessment: The next thing after you have been interviewed is that the bank or any other PFI you use will decide from the information you gave them if it will offer you the loan. They may request to carry out an assessment of your business.
- PFI Applies to the Development Bank of Nigeria for loan: If your bank or micro-finance bank finds your purpose for asking for the loan genuine, they will now apply to the DBN for funding.
- DBN approves your loan: If the Development Bank of Nigeria approves your loan, they’ll send the money to the bank or any other PFI you are using.
- The bank will forward the loan to you: The Bank or PFI will now send the loan to you.
Those are all the steps to obtain business loan from Development Bank of Nigeria.
What Is the Interest Rate?
The interest rate for a DBN loan is the best in Nigeria, and this should not be surprising as it was specifically established to serve the purpose of providing credit facility for MSMEs.
Many factors determine the interest rate of a specific loan, with one of them being the duration the loan is needed for.
Repaying the Loan
The Development Bank of Nigeria gives an excellent timeline to repay loans. You are allowed to pay back from 18 months (one and a half years). You may even take up to ten years to pay back.
However, there are a number of factors determining when you can repay, and they include the kind of business you have, as well as your purpose for requesting the loan.
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What Is DBN Collateral Requirement?
The Development Bank of Nigeria collateral requirement varies from one person to the other. After your bank, or other PFI you are using, has interviewed you to know why you need a loan, based on the information they gathered, they’ll decide the best requirement that will be used for a collateral.
In some instances, the financial institution will request to visit your business for an assessment, and this could significantly determine what your collateral requirement will be. Additionally, another factor that may also affect your collateral requirement is the amount of money requested.
When it comes to a fixed collateral requirement, there is none. What is used as a collateral for your DBN loan is determined on a case-by-case basis and could be at the discretion of your bank or micro-finance bank, based on their risk assessment.
Contacts of the Development Bank of Nigeria
If you have any question or need to lodge a complaint about your bank concerning obtaining a DBN loan, you can contact the DBN.
The DBN headquarters is the head office in Abuja, and its addresses is, the Clan Place, Plot 1386A Tigris Crescent, Maitama, Abuja, Nigeria.
Lagos office address: Plot 952/953 Idejo Street, Victoria Island, Lagos, Nigeria.
DBN phone number: +234-811-3841-699 and +234-9-904-0000.
Email address: email@example.com
DBN website: devbankng.com
Apart from being a body created by the Federal Government of Nigeria, the DBN also has a number of international partners which support the loan programs. The partners are listed as follows:
- The World Bank
- The African Development Bank (AfDB)
- The European Investment Bank
- The Agence Française de Développement (AFD)
- KfW – a German government-owned development bank
In a Nutshell
Having perused this guide on how to obtain business loan from Development Bank of Nigeria, you are now armed with the relevant information on getting that much-needed capital for your business. What you now need to do is to take the bold step and apply!