car loan in nigeria

How to Apply For National Automotive Loan In Nigeria (It’s Covered By Vehicle Purchase Credit Scheme)

Last Updated on July 19, 2021 by Ope Quadri

Every loan initiated by the Federal Government has a purpose and mostly the funds are managed by the Bank of Industry (BoI). One of them is the National Automotive loan. Is there a brand of vehicle that isn’t on Nigeria’s roads? Nigeria is a huge market for all kinds of vehicles.

Many Nigerian banks that have vehicle loans products for their customers under easy asset leasing schemes or other names will access the NAC fund, more details about one of them is available at: https://infomediang.com/fidelity-bank-loan

Apart from the importation of vehicles from Japan, South Korea, the USA, and Britain among others, it also means more spare parts of vehicles will be needed by their owners

The market for the vehicle and spare parts importation into the country is exactly what the FG is leveraging on by tapping into that to develop its own local content. In the end, this will contribute to the GDP.

Objective of Automatic Fund

1) The major purpose of this loan is to support, develop, and provide funds for the Small, Medium, and Micro-Enterprises (SME’s) to support them in the area of production of automotive parts, components, and services.

2) Not just that, it is also aimed at creating a conducive environment for the existing assembly plants to grow and attract others in the sector into Nigeria.

3) To encourage and increase local content participation in Vehicle Assembly in the country.

4) To use it as one of the tools to effect price change in the automobile sector, basically to reduce the price of vehicles.

5) To discourage smuggling and reduce the number of imported vehicles into Nigeria.

Above all, to create direct and indirect jobs

How the loan will be disbursed

Working in collaboration with the National Automotive Council (NAC), the BoI is saddled with the disbursement of N16.91 billion to SMEs under this programme.

 Who Is The Target Market?

If you sell clothes, repair a phone, or into carpentry works, this isn’t for you. There are other loans specifically designed for you.

The National Automatic Loan is designed for the following people or company:

1) A Limited Liability Companies and Enterprises who assemble automobiles

2) Companies who engage in the manufacturing of automotive component

3) Vehicle workshop and Car Service Centers

4) Nigeria’s financial institutions that have Vehicle Purchase Credit Scheme as one of their products

5) Banks who provide on-lending to automobile Artisans, craftsmen, auto-technicians, and mechanics.

How to apply for National Automotive Fund In Nigeria:

If you fall under the vehicle manufacturing business in Nigeria or are involved in the productions of spare parts, you can access the National Automotive Fund by heading to the official application portal of BoI at: https://apply.boi.ng

If you don’t have an account, create one to begin your application.

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