Loans

Bank Of Industry Loan- Get Your First Loan From BOI

BOI is also known as the Bank Of Industry. The bank is a development finance institution in Nigeria. BOI is a successor of the old Nigerian Industrial Development Bank (NIDB) which was introduced in 1964. As of 2001, BOI was later recapitalized and reformed. This is a result of it being the largest and oldest development financing institution in Nigeria.

The Bank Of Industry has partnered   Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), the Federal Ministry of Industry, Trade and Investment, the Federal Ministry of Finance, the Central Bank of Nigeria (CBN), and various other private/public sector organizations. It also sits together with other DFIs like the Development Bank of Nigeria (DBN) and the Bank of Agriculture (BOA).

The aim of the bank is to ensure that it makes loans available for business in Nigeria. These loans can be a long-term or a short terms loans that are meant to boost the industrial sector of the Nigerian economy.

BOI is focused on providing credits to SMEs as well as larger businesses in other to diversify and modernize even existing new enterprises. 

Also Read: Access Bank Trader Lite account

Who Can Get Loan From BOI?

BOI Loan is available to legitimate business operating in Nigeria. The BOI loan gives more priority to businesses that are into manufacturing and processing in Nigeria.

When your business falls into sector that is into the manufacturing and processing of agricultural materials, information technology, oil and gas, mining of solid minerals or the creative industry, you’ll be eligible to get a loan offer.

This loan being offered by BOI is only available for businesses not individuals. and onece you get the loan, you can use it to get equipments not landed properties like lands or buildings.

How Much Is Available For BOI Loan Beneficiaries?

The BOI loan starts from N5 million. But that doesn’t mean that businesses can not get lower amount base on how much they need. This is accessible through the Matching funds platform that operates through microfinance banks.

The Interest Rate Of BOI

BOI has an interest rate 10% max but for working capital, the interest rate is of 12-15% per annum

What Are The Collateral Of BOI Loan?

BOI is a collateral loan which allows you to use any of your asset as collateral. BOI ensures that it holds every borrower accountable for any loan they’re collecting. You can pledge your assest as collateral or use other security options such as bank guarntees, mortgage on landed properties, debentures and external guarantors. if you’re getting a loan of less than 10 million, you can use a thirt party collateral.

Bank Of Industry Loan

Also Read: How to get a loan from GTbank

Requirement For Every BOI Loan Available

Below are the requirements and things you need to know about BOI loan and how you can secure one for your business today.

PRE – APPROVAL CHECKLIST FOR ENTERPRISE – ₦10 MILLION & BELOW

  • Formal Application on letterhead and duly completed loan application form.
  • Photocopy of Certificate & Form of Registration 
  • Business Plan which includes a detailed Profile of the Business Enterprise with Curriculum Vitae of the Key Management Staff 
  • Proforma Invoice for the items of equipment to be purchased.
  • Sources and quotations for Raw Materials expressed in quantity and amount
  • 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

  • Bank Statement of the Business Enterprise for a period of one (1) year (for an existing business)
  • Declaration of Outstanding Liabilities to other Banks and Individuals, if any.
  • Two Individual external guarantors with proper means of identification such as BVN, four (4) passport photographs, Identity Cards 

, and letters of Intent to guarantee the loan.

  •  Security:

If a 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

  • If operating from a rented premise, the lease agreement must have a tenor of at least one year beyond the loan tenor.

Also Read: Kuda Bank App

CHECKLIST – ENTERPRISE

POST – APPROVAL CHECKLIST FOR ENTERPRISE

  • Submission of Letter of Offer duly endorsed by the Proprietor(s)
  • Letter of Acceptance of Offer signed by the Proprietor(s)
  • Evidence of payment of fees (if applicable, appraisal, commitment, and legal fees)
  • Return of duly executed Loan Agreements endorsed by the Proprietor(s)
  •  Letter showing specimen signature of the Proprietor(s)
  • Individual External Guarantors (if applicable):

(a) Means of identification (i.e. photocopy of International Passport or Driver’s License or National Identity Card or Permanent 

Voter’s Card)

(b) Four (4) Passport photographs

(c) Notarized Statement of Net-Worth (Form will be issued by BOI)

(d) BVN

(e) Curriculum Vitae of the Guarantor(s)

  • Original proforma invoice(s) of the items to be financed

PRE – APPROVAL CHECKLIST FOR LIMITED LIABILITY COMPANY – ₦10 MILLION & BELOW

  • Formal Application on letterhead and duly completed loan application form.
  • Photocopy of Certificate of Incorporation
  • A 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)

  • 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)

  • Quotation(s)/ Proforma invoice(s) for the supply of item(s) of Machinery and Equipment
  • Sources and quotation(s) for Raw Materials expressed in quantity and amounts
  • 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)

  • Biometrics Verification Number (BVN) of major shareholders of the company.
  • Three years’ Audited Financial Accounts and most recent Management Accounts from BOI accredited auditors (for an existing business) 

or Statement of Affairs (for businesses less than one (1) year)

  • Company’s Bank Statement(s) for a period of one (1) year (for an existing business)
  • Declaration of Outstanding Liabilities to other Banks and Individuals
  • 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.

  • 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 the Board Resolution of that company

  • If operating from a rented premise, the lease agreement must have a tenor of at least one year beyond the loan tenor.

Also Read: Quickteller Loan

CHECKLIST – LIMITED LIABILITY COMPANY

POST – APPROVAL CHECKLIST FOR LIMITED LIABILITY COMPANY

  • Submission of Letter of Offer duly endorsed by a Director and Company Secretary or two (2) Directors
  • Letter of acceptance of Offer
  • Return of duly executed Loan Agreement
  • Board Resolution authorizing borrowing
  • Photocopy of the filed Annual Returns (up to date) of the Company at the Corporate Affairs Commission (CAC)
  • Photocopy of the Current Tax Clearance Certificate of the Company and two of its Directors (if a landed property is being pledged as 

security for the loan)

  • Evidence of filling appointment of Company’s Secretary with CAC
  • Security – Original Title Documents of landed property (Certificate of Occupancy, Deed of Assignment (registered), Bank Guarantee
  • Individual Guarantors (Where Applicable):

(a) Means of identification (i.e. photocopy of International Passport or Driver’s License or National Identity Card or Permanent 

Voter’s Card)

(b) Four (4) Passport photographs

(c) Notarized Statement of Net-Worth (Form will be issued by BOI)

(d) BVN

(e) Curriculum Vitae of the Guarantor(s)

  • Evidence of payment of fees (if applicable – appraisal, commitment, and legal fees
  • Letter of Attestation
  • Letter showing specimen signature of the authorized signatory
  • Original proforma invoice(s) for the approved item

PRE – APPROVAL CHECKLIST FOR SMALL & MEDIUM ENTERPRISE – ABOVE ₦10 MILLION

  • Formal Application on letterhead and duly completed loan application form.
  • Photocopy of Certificate of Incorporation
  •  A 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)

  • 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

  • Quotation/Proforma Invoice for the supply of items of Machinery and Equipment
  • Sources and quotations for Raw Materials expressed in quantity and amount
  • 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

  • Biometrics Verification Number (BVN) of major shareholders of the company.
  • Three years’ Audited Financial Accounts and most recent Management Accounts from BOI accredited auditors (for an existing business) 

or Statement of Affairs (for businesses less than one (1) year)

  • Company’s Bank Statement(s) for a period of one (1) year (for an existing business)
  • Declaration of Outstanding Liabilities to other Banks and Individuals
  • Security:

(a) If Bank Guarantee, a letter of intent for Bank Guarantee from the Head Office of the commercial bank issuing the guarantee. 

(b) If a 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. 

  • If operating from a rented premise, the lease agreement must have a tenor of at least one year beyond the loan tenor.
  • A copy of the draft Technical, Management, Machinery Supply, and/or Joint Venture Agreement (where applicable). 
  • Three years’ Audited Financial Accounts and the most recent Management Account from BOI accredited auditors (for an existing business) 

or Statement of Affairs (for business less than one (1) year)

  • Company’s Bank Statement for a period of one (1) year (for an existing business)
  • Three years’ Financial Statement of Accounts for Institutional Investors in the project or another company owned by the Chief Promoter 

(where applicable)

  • Declaration of Outstanding Liabilities to other Banks and Individuals (if any)

 CHECKLIST – SMALL & MEDIUM ENTERPRISE

POST – APPROVAL CHECKLIST FOR SMALL & MEDIUM ENTERPRISE

  • Submission of Letter of Offer duly endorsed by a Director and Company Secretary or two (2) Directors
  • Letter of acceptance of Offer
  • Return of duly executed Loan Agreement
  • Board Resolution authorizing borrowing
  • Photocopy of the filed Annual Returns (up to date) of the Company at the Corporate Affairs Commission (CAC)
  • Photocopy of the Current Tax Clearance Certificate of the Company and two of its Directors (if a landed property is being pledged as security for the loan)

  • Evidence of filling appointment of Company’s Secretary with CAC
  • Security – Original title documents of landed property (Certificate of Occupancy, Deed of Assignment (registered)), Bank Guarantee
  • Evidence of payment of fees (if applicable – appraisal, commitment, and legal fees)
  • Letter of Attestation
  • Letter showing specimen signature of the authorized signatories
  • Original proforma invoice(s) for the approved item


Also Read: How secure a federal government grant

PRE – APPROVAL CHECKLIST FOR COOPERATIVE SOCIETY – ₦10 MILLION & BELOW

  • Formal Application on letterhead and duly completed loan application form
  • Photocopy of Certificate of Registration 
  • Photocopy of Bye-Laws/Constitution of the Society
  • Business Plan includes a detailed Profile of the Cooperative Society with Curriculum Vitae of the Executive members.
  • Proforma Invoice for the supply of items of Equipment to be purchased.
  • Sources and quotations for Raw Materials expressed in quantity and amount
  • 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

  • Bank Statement of the Society for a period of one (1) year (for existing societies)
  • Declaration of Outstanding Liabilities to other Banks and Individuals (if any)
  • Security:

If a 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 the Board Resolution of that company

  • If operating from a rented premise, the lease agreement must have a tenor of at least one year beyond the loan tenor.
  • Letter of Consent to borrow, issued by the Director of Cooperatives of the State.

CHECKLIST – COOPERATIVE SOCIETY

POST – APPROVAL CHECKLIST FOR COOPERATIVE SOCIETY

  • Submission of Letter of Offer duly endorsed by all beneficiary members of Society
  • Letter of Acceptance of Offer signed by the President and Secretary of the Society
  • Evidence of payment of fees (if applicable, appraisal, commitment, and legal fees)
  • Return of duly executed Loan Agreements duly endorsed by President and Secretary
  • Individual External Guarantors (if applicable): 

(a) Letter of Intent to guarantee

(b) Means of identification (i.e. photocopy of International Passport or Driver’s License or National Identity Card or Permanent 

Voter’s Card)

(c) Four (4) Passport photographs

(d) Notarized Statement of Net-Worth (Form will be issued by BOI)

(e) BVN (Biometric Verification Number)

(f) Profile of the Guarantor

  • Proforma Invoice(s) for the approved items to be finance

Also Read: Best Loan App in Ghana

PRE – APPROVAL CHECKLIST FOR GOVERNMENT ENTERPRISE AND EMPOWERMENT PROGRAMME 

(GEEP) FOR MEMBERS OF ASSOCIATIONS, COOPERATIVE SOCIETIES & TRADE GROUPS

  • Registration on GEEP portal: www.boi.ng/marketreg
  • Photocopy of Certificate of Registration with either the State or Federal
  • One (1) passport photograph of each executive member
  • BVN (Biometric Verification Number) of executive members
  • Signed group guarantee form between BOI and Association, Cooperative, or Trade groups
  • Minimum of 10 active members
  • Member beneficiaries to provide:
  • Duly completed loan application with accredited GEEP partner
  • Proof of membership in a registered and accredited market association, cooperative, or trade group
  • Valid BVN (Biometric Verification Number)
  • Completed Group Guarantee Form
  •  Duly opened a bank account

Conclusion

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About the author

Mathias Amodu

Mathias Amodu, NIRA Award winner (Youth Dev), Quickteller Ambassador, Web designer, Blogger, son, and a business Man.
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