Loan application process infomedia nigeeria

33 Nigerian Banks Where You Can Get DBN Loan For Your Business

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We’ve said severally how difficult it is for small business owners to access financing, but getting the right information to know the right credit facility for SMEs is also very important.

Do you know that even when the loans are available, the eligibility requirements and the interest rates by the commercial banks are not always favourable?

But we hope that the recent CBN Guidelines for Credit Guarantee Companies would see SMEs gaining more access to funding just as we pointed out at: https://infomediang.com/msmes-benefits-cbn-guidelines-for-cgcs

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One of the steps the Federal Government of Nigeria took was the establishment of the Development Bank of Nigeria (DBN).

Objectives of DBN

1) To remove the difficulty faced by Micro, Small and Medium Scale Enterprises (MSMEs) in Nigeria in accessing credit facility

2) To provide partial credit guarantees

3) To provide technical assistance to eligible Participating Financial Institutions

Unfortunately, the awareness about the existence of DBN is poor as most of the MSME owners we asked said they’ve never heard about the bank and what they do.

So, how can SMEs access some of the credit facilities of the Development Bank of Nigeria?

Who Can Access DBN Loan?

  1.  All existing MSMEs in productive enterprises
  2. Startup SMEs in productive activities

The good thing about this is that DBN will be providing funding and risk-sharing guarantees through Participating Financial Institutions (PFIs), who will in turn undertake on-lend to end beneficiaries.

Follow the steps below to apply for the credit facility:

Step 1: Visit one of the Participating Financial Institutions (PFIs) near you, some commercial, Microfinance Bank, and Development Finance Institution (DFI) have the form available in their branches spread across Nigeria

Step 2: The PFI assesses your application and loan purpose.

Step 3:  If your business gets a positive assessment, the bank on your behalf sends your score to DBN

Step 4: DBN disburses the funds to the bank through which you applied.

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Interest Rate:

The interest rate of depends on the PFIs through which you submitted your application, though it’s a double-digit rate.

It’s more favourable when you applied through Deposit Money Banks (DMBs) like GTCO, FCMB, Sterling, Providus, and Union bank among others.

If you submitted your loan application through microfinance banks and other financial institutions (OFIs), you’d pay more interest.

  • For DMBs, the interest rate is 12.5% per year.
  • For MFBs and OFIs, it is 16.5% per annum

What does this mean?

If you applied and received a loan of N2,000,000 via the DMBs, you’d pay N250,000 as an interest rate in 12 months

If you get the same DBN N2,000,000 loan through a microfinance bank, you’d pay N330,000 as an interest.

Repayment Mode:

  • Up to 10 years
  • Moratorium period of up to 18 months

Below is a list of banks – Commercial Banks, Microfinance Banks, Development Finance Institutions (DFIs) and other Financial Institutions – where you can apply get DBN loan:

  1. GTBank
  2. Astra Polaris MFB
  3. Baobab Microfinance Bank
  4. Access Bank Plc
  5. Ecobank Nigeria Bank Plc
  6. Fidelity Bank Plc
  7. HASAL Microfinance Bank
  8. Infinity Microfinance Bank Ltd
  9. Wema Bank Plc
  10. Providus Bank
  11. Stanbic IBTC Bank Plc
  12. Infinity Trust Mortgage Bank
  13. La Fayette Microfinance Bank Limited
  14. LAPO Microfinance Bank Ltd
  15. FCMB Ltd
  16. First Bank Nig Ltd
  17. Parallex Microfinance Bank
  18. Regent Microfinance Bank
  19. Mainstreet Microfinance Bank Ltd
  20. Microvis Microfinance Bank
  21. NPF Microfinance Bank Plc
  22. Seedvest Microfinance Bank
  23. Stanford Microfinance Bank
  24. Trust Microfinance Bank
  25. AB Microfinance Bank Nigeria Ltd
  26. Accion Microfinance Bank Limited
  27. Addosser Microfinance Bank
  28. Davodani Microfinance Bank
  29. FSDH Merchant Bank
  30. Bosak Microfinance Bank
  31. Sterling Bank Plc
  32. Union Bank of Nig Plc
  33. Jubilee Life Mortgage

Final Thought

It is imperative to note that DBN loan isn’t available in all Nigerian banks. The above banks applied to be participating partners.

All the best as you take another step to boost your business with a friendly credit facility.

 

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