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Starting a business can be an exciting journey, but it can also be a financial challenge, especially for new entrepreneurs. Luckily, there are many loans available in Nigeria that can help startups get off the ground. In this article, we'll explore the top 20 loans for startups in Nigeria, including their features, requirements, and how to apply.
1. Bank of Industry (BOI) Youth Entrepreneurship Support (YES) Programme
The BOI YES programme is designed to provide financial and business support to young entrepreneurs between the ages of 18 and 35. The loan amount ranges from N1 million to N10 million, and the interest rate is 9%. To apply, you must have a viable business plan and a guarantor. The loan repayment period is between 3 and 5 years.
2. GroFin Small and Growing Business Fund
The GroFin Small and Growing Business Fund is a loan programme that provides funding to small and medium-sized enterprises (SMEs) in Nigeria. The loan amount ranges from N5 million to N100 million, and the interest rate is 24%. To apply, you must have a viable business plan, a guarantor, and collateral. The loan repayment period is between 4 and 7 years.
3. Diamond Bank BET Programme
The Diamond Bank BET programme is a loan scheme designed to support young entrepreneurs in Nigeria. The loan amount ranges from N1 million to N10 million, and the interest rate is 9%. To apply, you must have a viable business plan, a guarantor, and collateral. The loan repayment period is between 3 and 5 years.
4. Bank of Agriculture (BOA) SME Loans
The BOA SME Loans programme is designed to provide funding to small and medium-sized agribusinesses in Nigeria. The loan amount ranges from N100,000 to N10 million, and the interest rate is 9%. To apply, you must have a viable agribusiness plan and a guarantor. The loan repayment period is between 3 and 5 years.
5. Central Bank of Nigeria (CBN) Agric-Business/Small and Medium Enterprises Investment Scheme (AGSMEIS)
The CBN AGSMEIS programme is designed to provide financial support to small and medium-sized enterprises (SMEs) in Nigeria. The loan amount ranges from N50,000 to N10 million, and the interest rate is 5%. To apply, you must have a viable business plan and be registered with the Corporate Affairs Commission (CAC). The loan repayment period is between 3 and 5 years.
6. Lagos State Employment Trust Fund (LSETF) Loan Programme
The LSETF Loan Programme is designed to provide funding to small and medium-sized enterprises (SMEs) in Lagos State, Nigeria. The loan amount ranges from N100,000 to N5 million, and the interest rate is 5%. To apply, you must have a viable business plan and be registered with the Corporate Affairs Commission (CAC). The loan repayment period is between 1 and 3 years.
7. Bank of Industry (BOI) Graduate Entrepreneurship Fund (GEF)
The BOI GEF programme is designed to provide financial support to young graduates who have completed the National Youth Service Corps (NYSC) programme in Nigeria. The loan amount ranges from N500,000 to N2 million, and the interest rate is 9%. To apply, you must have a viable business plan and a guarantor. The loan repayment period is between 3 and 5 years.
8. Tony Elumelu Foundation Entrepreneurship Programme
The Tony Elumelu Foundation Entrepreneurship Programme is a $100 million initiative designed to support African entrepreneurs. The programme provides seed funding, mentorship, and business training to selected entrepreneurs across Africa, including Nigeria. To apply, you must have a viable business idea and be a citizen or legal resident of an African country. The application process opens annually from January to March.
9. Nirsal Microfinance Bank (NMFB) COVID-19 Targeted Credit Facility
The NMFB COVID-19 Targeted Credit Facility is designed to provide financial support to households and businesses affected by the COVID-19 pandemic in Nigeria. The loan amount ranges from N50,000 to N25 million, and the interest rate is 5%. To apply, you must have a viable business plan and be registered with the Corporate Affairs Commission (CAC). The loan repayment period is between 1 and 3 years.
10. Development Bank of Nigeria (DBN) Loan Programme
The DBN Loan Programme is designed to provide funding to micro, small, and medium-sized enterprises (MSMEs) in Nigeria. The loan amount ranges from N5 million to N10 billion, and the interest rate is 9%. To apply, you must have a viable business plan and be registered with the Corporate Affairs Commission (CAC). The loan repayment period is between 3 and 10 years.
11. Bank of Industry (BOI) Cottage Agro Processing (CAP) Fund
The BOI CAP Fund is designed to provide financial support to small and medium-sized agro-processing businesses in Nigeria. The loan amount ranges from N5 million to N50 million, and the interest rate is 9%. To apply, you must have a viable agro-processing business plan and a guarantor. The loan repayment period is between 3 and 5 years.
12. SMEDAN Loan Programme
The SMEDAN Loan Programme is designed to provide funding to micro, small, and medium-sized enterprises (MSMEs) in Nigeria. The loan amount ranges from N50,000 to N5 million, and the interest rate is 9%. To apply, you must have a viable business plan and be registered with the Corporate Affairs Commission (CAC). The loan repayment period is between 3 and 5 years.
13. Youth Entrepreneurship Support (YES) Programme
The YES programme is a loan scheme designed to support young entrepreneurs in Nigeria. The loan amount ranges from N1 million to N10 million, and the interest rate is 9%. To apply, you must have a viable business plan and a guarantor. The loan repayment period is between 3 and 5 years.
14. Nigerian Export-Import Bank (NEXIM) Export Stimulation Facility
The NEXIM Export Stimulation Facility is designed to provide financial support to businesses that export non-oil products in Nigeria. The loan amount ranges from N5 million to N500 million, and the interest rate is 9%. To apply, you must have a viable non-oil export business plan and be registered with the Nigerian Export Promotion Council (NEPC). The loan repayment period is between 3 and 10 years.
15. Fidelity Bank SME Funding Connect
The Fidelity Bank SME Funding Connect is an online platform designed to connect small and medium-sized enterprises (SMEs) in Nigeria with funding opportunities. The platform provides access to various loan products, including overdrafts, term loans, and invoice discounting. To apply, you must have a viable business plan and be registered with the Corporate Affairs Commission (CAC).
16. Access Bank Womenpreneur Pitch-A-Ton
The Access Bank Womenpreneur Pitch-A-Ton is a pitch competition designed to provide financial support to female entrepreneurs in Nigeria. The competition provides a total grant of N10 million to the top 3 winners, as well as training and mentorship opportunities. To apply, you must be a female entrepreneur with a viable business idea.
17. Lagos State Employment Trust Fund (LSETF) Lagos Innovates
The LSETF Lagos Innovates programme is designed to provide funding and support to tech startups in Lagos State, Nigeria. The programme provides access to various funding opportunities, including equity-free grants, seed funding, and venture capital. To apply, you must have a viable tech startup and be registered with the Corporate Affairs Commission (CAC).
18. Bank of Industry (BOI) Food Processing Fund
The BOI Food Processing Fund is designed to provide financial support to small and medium-sized food processing businesses in Nigeria. The loan amount ranges from N5 million to N50 million, and the interest rate is 9%. To apply, you must have a viable food processing business plan and a guarantor. The loan repayment period is between 3 and 5 years.
19. First Bank of Nigeria SME Connect
The First Bank of Nigeria SME Connect is an online platform designed to connect small and medium-sized enterprises (SMEs) in Nigeria with funding opportunities. The platform provides access to various loan products, including overdrafts, term loans, and invoice discounting. To apply, you must have a viable business plan and be registered with the Corporate Affairs Commission (CAC).
20. Providus Bank SME Challenge
The Providus Bank SME Challenge is a pitch competition designed to provide financial support to small and medium-sized enterprises (SMEs) in Nigeria. The competition provides a total grant of N3 million to the top 3 winners, as well as training and mentorship opportunities. To apply, you must have a viable business idea.
Conclusion
Starting a business in Nigeria can be challenging, but with the right funding and support, you can turn your dreams into reality. The loans and funding opportunities listed in this article are just a few of the many options available to startups in Nigeria. Before applying for any loan, be sure to carefully read and understand the terms and conditions, and ensure that you have a viable business plan. With the right funding and support, you can take your business to the next level and contribute to the growth and development of the Nigerian economy.
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