How to get a loan from the Bank of Industry (BOI)


The Bank of Industry (BOI) is a leading development financing institution in Nigeria. It was founded in 2001 from the the defunct Nigerian Industrial Development Bank (NIDB) Limited, which was incorporated in 1964. The bank provide access to funds for startups, SMEs, and large enterprises. You can get financing up to N500 million from the Bank of Industry.

In this article, MakeMoney.ng look at how to get a loan from the Bank of Industry (BOI) and all the things that you should know.

Having access to financing is very important in the life of any business. No matter how big or amazing your idea might be, without the funds to put it to reality, it will remain just an idea. That is where the BOI comes in. If you need funds to startup a business or to expand an existing business, the BOI might just be your solution.

 

Who can get financing / loan from the Bank of Industry (BOI)

The Bank of Industry does not give financing to individuals or a group of individuals. That is the first thing you should know.

But they give financing to enterprises or companies that are duly registered with CAC. This is a must as you will be asked for the registration number for a Limited Liability Company or business name for an enterprise before you can apply for loan.

If you run a small scale to medium scale business, you can apply for the BOI loan.

Startup businesses that can provide proof of experience in the business area can apply. They will need to have a sound management team.

In summary, Bank of Industry give preference to businesses whose product revolves around the following industry:

1. Adire (Tie and Dye)/Aso Oke
2. Animal Feeds
3. Aquaculture
4. Bakery
5. Blocks and Interlocking Stones
6. Bottled Water
7. Ceramics & Tiles
8. Chemicals and Paints
9. Cosmetics/Hair Products
10. Dairy
11. Digital Printing/Multimedia Publishing
12. Doors and Window Frames
13. E-Commerce/Information & Communications Technology (ICT)
14. Fashion/Garmenting
15. Fish Smoking/Drying
16. Food Processing (comprising processing of agricultural products)
17. Foundries/Metal Fabrication/3-D Printing
18. Fruit Juice
19. Furniture/Wood Processing
20. Gemstones
21. Greenhouses
22. Laundry and Dry Cleaning
23. Leather/Footwear
24. Liquefied Petroleum Gas/Compressed Natural Gas
25. Meat Processing
26. Mechatronics
27. Health Care (Medical Diagnostics)
28. Laboratory/Orthodontist/Ophthalmology/Physiotherapy)
29. Movie Production (Nollywood)
30. Plastics
31. Quick Service Restaurants
32. Quarries
33. Recycling
34. Roofing Sheets
35. Soaps and Detergents
36. Solar (off grid)
37. Technical/Vocational Schools (Offering City & Guild Certificate)
38. Theme Parks
39. Water Transportation Riverine
40. Light Manufacturing (Paper, Roofing Sheets, lube blending, Paints etc)
41. Grocery packaging

 

Collateral requirement for Bank of Industry loan

The Bank of Industry (BOI) requires collateral and other requirement to get a loan. You should go through the list to ensure that you have them all set. Without these requirements you may not be able to access financing from the development bank of Nigeria.

The good thing is that they are flexible. Types of security the Bank accepts include:

  • Legal mortgage on a landed property. The property must be duly registered with a Certificate of Occupancy
  • Debenture on assets of the company
  • Bank Guarantee
  • External Guarantors with Notarized statement of Networth for loans below N10 million.

 

Other requirements

There are lots of requirement that you should check before applying. These requirements depends on what category you are applying for. See them below:

 

1. For enterprise up to 10 million Naira

Below are requirements for enterprise applying for loan up to N10, million:

1. Formal Application on letterhead and duly completed loan application form.
2. Photocopy of Certificate & Form of Registration
3. Business Plan which includes detailed Profile of the Business Enterprise with Curriculum Vitae of the key Management Staff
4. Proforma invoice for the items of Equipment to be purchased.
5. Sources and quotations for Raw Materials expressed in quantity and amount
6. Means of Identification of Promoters:
(a) Four (4) passport photographs and Biometrics Verification Number (BVN)
(b) Photocopy of International Passport or Driver’s License or National Identity Card or Permanent Voter’s Card
7. Bank Statement of the Business Enterprise for a period of one (1) year (for existing business)
8. Declaration of Outstanding Liabilities to other Banks and Individuals, if any.
9. Two Individual external guarantors with proper means of identification such as BVN, four (4) passport photographs, Identity Cards
and Letter of Intent to guarantee the loan.
10. Security:
If landed property is being pledged as security, then the following are to be provided:
(i) Photocopy of the Title Document(s) to the property being pledged. This could be a Certificate of Occupancy, Deed of
Sublease or Deed of Assignment/Conveyance
(ii) Evidence of payment of Ground Rent up to date
(iii) Tax Clearance Certificate (TCC) of the owner of the property obtained from the State where the property is located.
(iv) Valuation Report from one of BOI’s accredited valuers
(v) Four (4) passport photographs and BVN of the property owner
(vi) Means of identification of the property owner
(vii) Letter of Consent signed by the property owner to mortgage property to BOI
(viii) If the property is owned by a limited liability company different from the borrower, then Board Resolution of that
company
11. If operating from a rented premises, lease agreement must have a tenor of at least one year beyond loan tenor.

 

2. For limited liability company up to 10 million Naira loan

Below are requirements for limited liability companies applying for up to N10 million:

1. Formal Application on letterhead and duly completed loan application form.
2. Photocopy of Certificate of Incorporation
3. Certified true copy of Memorandum and Articles of Association and Forms CAC 2.5 (Allotment of Shares), CAC 2.3 (Particulars of
Directors) and CAC 2.1 (Appointment of Company Secretary)
4. Business Plan to include detailed company profile, Curriculum Vitae of the key Management Staff, write-up on
technology/manufacturing process(es) and agreement with Technical Partners (if applicable)
5. Quotation(s)/ Proforma invoice(s) for the supply of item(s) of Machinery and Equipment
6. Sources and quotation(s) for Raw Materials expressed in quantity and amounts
7. Means of Identification of the Chief Promoter and one other Director of the company:
(a) Eight (8) passport photographs and Biometrics Verification Number (BVN).
(b) Photocopy of International Passport or Driver’s License or National Identity Card or Permanent Voter’s Card Means of
identification (i.e. photocopy of International Passport or Driver’s License or National Identity Card or Permanent Voter’s
Card)
8. Biometrics Verification Number (BVN) of major shareholders of the company.
9. Three years’ Audited Financial Accounts and most recent Management Accounts from BOI accredited auditors (for existing business)
or Statement of Affairs (for businesses less than one (1) year)
10. Company’s Bank Statement(s) for a period of one (1) year (for existing business)
11. Declaration of Outstanding Liabilities to other Banks and Individuals
12. Two Individual external guarantors with proper means of identification such as BVN, four (4) passport photographs, Identity Cards
and Letter of Intent to guarantee the loan.
13. Security:
If Landed Property is being pledged as security, then the following:
(a) Photocopy of the Title Document(s) to the property being pledged. This could be a Certificate of Occupancy, Deed of Sublease
or Deed of Assignment/Conveyance
(b) Evidence of payment of Ground Rent up to date
(c) Tax Clearance Certificate (TCC) of the owner of the property obtained from the State where the property is located.
(d) Valuation Report from one of BOI’s accredited valuers
(e) Four (4) passport photographs and BVN of the property owner
(f) Means of identification of the property owner
(g) Letter of Consent signed by the property owner to mortgage property to BOI
(h) If the property is owned by a limited liability company different from the borrower, then Board Resolution of that company
14. If operating from a rented premises, lease agreement must have a tenor of at least one year beyond loan tenor.

 

3. For large enterprise and SME above 10 million Naira loan

The follow requirement are for large enterprise or SME applying for above N10 million:

1. Formal Application on letterhead and duly completed loan application form.
2. Photocopy of Certificate of Incorporation
3. Certified true copy of Memorandum and Articles of Association and Forms CAC 2.5 (Allotment of Shares), CAC 2.3 (Particulars of
Directors) and CAC 2.1 (Appointment of Company Secretary)
4. Feasibility Study Report to include detailed Profile of the Company with Curriculum Vitae of the Directors and key Management
Staff and write-up on technology/manufacturing process(s)/ Technical Partners
5. Quotation/Proforma Invoice for the supply of items of Machinery and Equipment
6. Sources and quotations for Raw Materials expressed in quantity and amount
7. Means of Identification of the Chief Promoter and one other Director of the company:
(a) Eight (8) passport photographs and Biometrics Verification Number (BVN).
(b) Photocopy of International Passport or Driver’s License or National Identity Card or Permanent Voter’s Card
8. Biometrics Verification Number (BVN) of major shareholders of the company.
9. Three years’ Audited Financial Accounts and most recent Management Accounts from BOI accredited auditors (for existing business)
or Statement of Affairs (for businesses less than one (1) year)
10. Company’s Bank Statement(s) for a period of one (1) year (for existing business)
11. Declaration of Outstanding Liabilities to other Banks and Individuals
12. Security:
(a) If Bank Guarantee, a letter of intent for Bank Guarantee from the Head Office of commercial bank issuing the guarantee.
(b) If landed property is being pledged as security, then the following are to be provided:
(i) Photocopy of the title document(s) to the property being pledged. This could be a Certificate of Occupancy, Deed of
Sublease or Deed of Assignment/Conveyance
(ii) Evidence of payment of Ground Rent up to date
(iii) Tax Clearance Certificate (TCC) of the owner of the property obtained from the State where the property is located
(iv) Valuation Report from one of BOI’s accredited valuers
(v) Four (4) passport photographs and BVN of the property owner (for 3rd Party Legal Mortgage)
(vi) Means of identification of the property owner (for 3rd Party Legal Mortgage)
(vii) Letter of Consent signed by the property owner to mortgage property to BOI
(viii) If the property is owned by a limited liability company different from the borrower, then Board Resolution of that
company.
13. If operating from a rented premises, lease agreement must have a tenor of at least one year beyond loan tenor.
14. A copy of the draft Technical, Management, Machinery Supply and/or Joint Venture Agreement (where applicable).
15. Three years’ Audited Financial Accounts and most recent Management Account from BOI accredited auditors (for existing business)
or Statement of Affairs (for business less than one (1) year)
16. Company’s Bank Statement for a period of one (1) year (for existing business)
17. Three years’ Financial Statement of Accounts for Institutional Investors in the project or another company owned by the Chief Promoter
(where applicable)
18. Declaration of Outstanding Liabilities to other Banks and Individuals (if any)

 

4. For cooperative society up to 10 million Naira loan

The following requirement are for cooperative society applying for loans up to N10 million:

1. Formal Application on letterhead and duly completed loan application form
2. Photocopy of Certificate of Registration
3. Photocopy of Bye-Laws/Constitution of the Society
4. Business Plan which includes detailed Profile of the Cooperative Society with Curriculum Vitae of the Executive members.
5. Proforma invoice for the supply of items of Equipment to be purchased.
6. Sources and quotations for Raw Materials expressed in quantity and amount
7. Means of Identification of every beneficiary member:
(a) Four (4) passport photographs and Biometrics Verification Number (BVN).
(b) Photocopy of International Passport or Driver’s License or National Identity Card or Permanent Voter’s Card
8. Bank Statement of the Society for a period of one (1) year (for existing societies)
9. Declaration of Outstanding Liabilities to other Banks and Individuals (if any)
10. Security:
If landed property is being pledged as security, then the following:
(a) Photocopy of the title document(s) to the property being pledged. This could be a Certificate of Occupancy, Deed of Sublease
or Deed of Assignment/Conveyance
(b) Evidence of up to date payment of Ground Rent
(c) Tax Clearance Certificate (TCC) of the owner of the property obtained from the State where the property is located
(d) Valuation Report from one of BOI’s accredited valuers
(e) Four (4) passport photographs and BVN of the property owner
(f) Means of identification of the property owner (i.e. photocopy of International Passport or Driver’s License or National Identity
Card)
(g) Letter of Consent signed by the property owner to mortgage property to BOI
(h) If the property is owned by a limited liability company different from the borrower, then Board Resolution of that company
11. If operating from a rented premises, lease agreement must have a tenor of at least one year beyond loan tenor.
12. Letter of Consent to borrow, issued by the Director of Cooperatives of the State.

 

How much is the Bank of Industry (BOI) loan?

The Bank of Industry offers financing starting from N5 million upward. But through its other platforms, a loan below N5 million can be accessed. You can obtain loan up to N500 million.

 

How Bank of Industry disburses loans

The Bank of Industry does not distribute the loan in cash to applicants. Rather, they give it to the vendors and suppliers of the equipment that the loan application is for.

 

How to apply for the Bank of Industry (BOI) loan or financing

Follow these steps to apply for the Bank of Industry loan or financing:

1. Get your document ready

The first step is to get your document ready. If you look above, we have highlighted the requirements. You should get them ready. Because without them, your loan application may not sail.

 

2. Apply online

After you have all your documents ready, it is time to apply. You can apply online on the Bank of Industry website. It is straightforward. If you are new to the website, register to get your login details. Then login to apply. Click here to apply on the website

 

3. Apply at BOI branches

You can visit any of the Bank of Industry branches to apply

 

4. Submit your application

Submit your application and wait for outcome. If your application is accepted, some actions will be required from your end.

 

You can also read: How to get a loan from the Development Bank of Nigeria

 

For other loan options, read this page: Loans

 


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