Abuja Police arrest robbery suspects who rob bank with cutlasses                          109 -year-old, thousands of ghost workers uncovered in Zamfara civil service verification exercise                          Liverpool should be Champions already, but who be Arsenal where Chelsea dey sef?                         Top 10 Nollywood movies that defined the Nigerian film industry in 2019                          Rising Debt, Banking Sector Recapitalisation: Three major issues that will shape Nigeria’s economy in 2020                         Sanusi VS Ganduje: Sanusi fights dirty, sacks Ganduje ally from palace                         5 things no one has ever told you about Christmas                         How a small agritech start-up is taking on Nigeria’s adulterated palm oil cabals                         CBN scraps card maintenance fee, slashes bank charges in new banking guidelines                         EXPLAINED: 7 things you need to know about CBN's new guide on bank charges                         Religious Persecution: You are not world’s police, Buhari’s government lashes out at America                         Mahrez, Mane, Salah are nominees for African Footballer of the Year                         SAD! 19,273 Nigerian teachers fail 2019 Professional Qualification Examination                         Group commends Immigration over compulsory drug test for personnel                         BREAKING! Gunmen abduct Bayelsa commissioner’s 6-year-old son                         JUST IN! JAMB fixes March 14 for 2020 UTME examination                         Tesla to take fresh $1.4 billion loan from Chinese banks for Shanghai’s Gigafactory – Sources                         Igbos outraged over IGP’s roadblock order, decry 60 police roadblocks from Lagos to Onitsha                         Fayose’s faction sells Ekiti PDP secretariat as party’s crisis worsens                         Nigeria’s rising public debt remains worrisome, unsustainable - World Bank                        


Why your request for Bank of Industry loan is proving difficult

One of the issues is for project owners and businesses to make their projects bankable and make them legible for credit.


Share this news


BoI

Have you ever tried but failed to secure a loan for your business from the Bank of Industry, BoI? Several reasons could have accounted for this.

Your business may have been outside of the sectors that the bank provides financing for. Your loan demand may have been below the threshold of what the bank directly provides. There are a host of other issues which we shall deal with subsequently on how to access a BoI loan.

Here is a clue as to why BoI could reject your loan request.

1. Unbankable/Projects: The number one issue for the bank is whether your business or project for which you are seeking a loan is bankable.

One of the issues is for project owners and businesses to make their projects bankable and make them legible for credit.

Also, read What the single aviation market means for Nigeria’s travel business

The BoI has more funds available than there are bankable applications seeking funding from the development lender.

The truth of the matter is that there are funds available to lend in excess of bankable applications at the moment. And that has always been the case.

2. High Cost of Financing: Depending on your size of the business, the cost of financing becomes a major hurdle that you may have to deal with when seeking BoI loan.

Small businesses are most affected because their businesses just do not worth much. To make matters worse, most of them have no collateral to guarantee access to credit.

Cost of financing is a legitimate issue in Nigeria. We have a high nominal interest rate. So, that is a macro-economic problem that is going to take some time to deal with them.

A lot of work is needed to help the SMEs improve their access to debts because one of the issues is having the equity that makes them eligible for debts or having what I would call a substitute for collateral that helps them to borrow.

But for large businesses, the truth of the matter is that many of them need to work on their bankability. They need to ensure that they are producing properly oriented accounts to make sure that they file their returns on time.

Share this new


Sign In To Leave A Comment


Nigeria Today News. ©2019 Nigeria Today. All rights reserved.