SMEs: Here’s how to get N500 million loans
Raising capital is a major problem for SMEs, especially in Nigeria, the world’s capital of poverty. However, banks may still be the best choice for quick and easy loans for those who play an important role in economic growth.
The National Bureau of Statistics estimates that the number of micro, small and medium-sized enterprises is 37 million, while other figures show that in the SME sector in 2013 employed 59.7 million. people, ie 84.02 percent. total workforce. The contribution of SMEs to the country’s GDP is 48.47% in nominal terms and exports are 7.27%.
Despite the significant contribution of SMEs to the economy, the challenges they face in Nigeria tend to be inconsistent government policies, poor infrastructure and assistance, access to markets, multiple taxes and outdated technologies, and, most importantly, access to finance.
To ensure adequate funding, many Nigerian banks offer loans of up to £ 500m. N to help small businesses thrive. Not only do these loans offer relatively low interest rates, but they are designed to suit a variety of businesses, and some do not require them to be innate.
We highlights some Nigerian banks offering loans in the country:
Standard Chartered – offers smart business loans up to N20 million
Standard Chartered Smart Business Loans give SMEs access to loans of up to € 20 million. N to be able to expand the business without any collateral. According to the bank’s website, the loan allows for a flexible repayment plan that is business-friendly and can be flexible for up to 2 years.
A standard outsourced loan, available through the bank’s digital application forms, automates the repayment process and also allows for additional financing over the life of the loan. This means that business owners can top up after 12 months if regular payments are made.
The first bank – SME Product Finance offers N20 mln. – N500 million
Financing SME products is intended for the overall growth of small and medium-sized enterprises, which are the main drivers of the economy. According to the bank, we offer a variety of competitive SME products at competitive prices and flexible assets and products on our website.
The product depends on the nature of the business, and the type of business determines the amount that can be spent on improving the business. For example, Cement Distributor Finance offers up to $ 120 million. Approximately 12 months to support distributors ’working capital for commercial development, and a commercial mortgage provides up to $ 100 million. N. loan and requires the purchase of property. Because the product is designed to finance. Requirements for small and medium-sized enterprises established in practical business related to the acquisition of commercial premises under a full purchase or construction scheme.
Similarly, loans for office equipment can be given to offices looking to raise funds to increase their assets, allowing businesses to reach N20 million. and more, and are designed to finance SMEs that need vehicles for their day-to-day business and offer the largest loan. N500 million For a period of about 12 months, FMCG companies, distributors on the main list approved by the bank for the commercial development of fast-growing consumer goods.
Access Bank – offers commercial loans up to N3 million
Access Bank’s business loans allow businesses to expand and are available in a variety of categories, such as micro loans, small business loans, ALDA loans, and overdrafts.
Micro-loan: The aim is to help small businesses grow by offering 12% up to 100,000 N in 60 months, while allowing small and medium-sized businesses to implement credit expansion plans and solve financial problems. It offers up to 3 million. N up to 60 months.
ALDA loans are also considered exclusive rights for agricultural development up to 200,000 N in 36 months. from 7% and overdrafts up to 1-1.5% with a monthly interest rate of 200,000 N to 12 months. Offers. Security deposit required.
Union Bank – Union Biz account offers 50 mln
Union Bank provides a range of special purpose banking services to make it easier for different categories of SMEs to obtain loans.
Free cash flow lending, allowing businesses to borrow up to a maximum of N10 million. N 12 months to meet any short-term working capital needs and the school funding is for the school owner. Offers the required $ 5 million. N, no deposit required. Operating costs of private schools in kindergartens, primary and secondary schools, such as school uniforms, stationery, etc.
Other loan options include local purchase order, distributor financing of financial assets, term loans, overdraft
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