The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) is a government sanctioned agency created by an Act in 2003. The goal of SMEDAN is to help, mentor and promote the growth of the Micro, Small and Medium Enterprises (MSME) sector of the economy.
The agency achieves this goal by helping Small businesses and entrepreneurs have access to loans and also offering training and mentor-ship. Frequently, the organisation organizes different programs and projects aim at helping the MSME sector.
As you may know, the MSME sector of the economy is the backbone of Nigeria’s economy. It is widely believed that if small businesses and emerging entrepreneurs can be empowered with access to funds and training, the Nigerian economy would grow rapidly. That is the goal of the The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN).
Understanding SMEDAN loan
SMEDAN does not necessarily provide the loan on its own. While they occasionally disburse loans themselves, such as the National Enterprise Development Programme (NEDEP) loan, they most often time act as a middle man.
They create a pool of loans accessible to small businesses and entrepreneurs from different providers such as banks, Micro-finance, cooperate societies and more. They then give entrepreneurs and small businesses access to these loans through its platform. There are also loans provided by the Central bank of Nigeria (CBN) on its platform. Bank of Agriculture (BOA) loans can also be accessed from them.
In summary, it is more like a matchmaking between small businesses/entrepreneurs and fund providers. The matchmaker is SMEDAN.
All loans offered by SMEDAN itself and the fund providers in its pool can be accessed through the SMEDAN credit information portal.
SMEDAN loan requirement and collateral
Since all loans are not provided by the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) and there are different loan provider in the pool, requirement and collateral demand defers.
However, the emphasis of SMEDAN is on loan without collateral. Or with minimal collateral demand.
Generally, small businesses and entrepreneurs in Nigeria can have access to the loans in the pool.
Who can apply for SMEDAN loan?
How to get a loan from SMEDAN
Follow these steps to get a loan from SMEDAN or any of the fund providers in its pool:
1. Visit SMEDAN credit information portal
The first step is to visit the credit information portal. You can access the portal from your computer, tablet or phone. To access the credit information portal click here.
2. Select the type of loan that you want
Next is to select the type of loan that you are looking for. There are basically four types of loan to select from. The four types of loan available includes:
Personal loan: Personal loans are aimed at helping individuals achieve aims/target quickly
Business loans: Business loans are targeted to help businesses grow
Mortgage loans: Mortgage Loans are aimed to assist in acquiring property. It is usually long-term loan to assist individuals own their houses
Credit card loans: Credit card loans are to help you on the go
So select the type of loan that you are looking for.
3. Provide needed information
You will be asked next to provide necessary information. More like creating a profile. You must only provide accurate information.
Information required will include the purpose of loan, your age, employment status and how much you need. See the screenshot below as an example.
4. Get loan options
Once you have filled in the required information, you click on ‘check availability’. From there you should be able to see the available loan options for you based on the information that you provided.
5. Apply for loan
Go through the results. You will see loan requirement for each of them and the interest rates. Once you find the one that is okay by you, you apply. Simply click on “View details and apply.” Then click on “Get started.” From there you can apply.
SMEDAN loan interest rates
Since the loan are from different providers, there is no fix interest rate. However, SMEDAN prioritized loans with small interest rates.
Currently the loans are available mainly in only few states in Nigeria. You can still find some in other states but the coverage is mainly in the following states: Lagos, Abuja and Kaduna. However, if you are not any of these states you can still try. You will see options for “All states” when applying. Select it. You may still have loans to access.
You can contact SMEDAN through the following information:
Address: No 35 Port Harcourt Crescent , Area 11, Off Gimbiya Street, Area 11, Garki, Abuja.
Email Address: firstname.lastname@example.org
For other loan options, check our page: Loans