How to access up to N500 Million SME Loan from Nigerian Banks

How to access up to N500 Million SME Loan from Nigerian Banks can be accessed below.

It is understands that getting capital is a major problem for SMEs, particularly in Nigeria, the poverty capital of the world. However, the bank may still be the best bet to access quick and easy loans for the segment which play a major role in economic development.

The National Bureau of Statistics puts the total number of Micro, Small and Medium Enterprises at 37 million while further statistics show that the number of persons employed by the MSME sector as at 2013 stood at 59.7 million, representing 84.02% of the total labour force with MSMEs contribution to the Nation’s Gross Domestic Product in nominal terms at 48.47% and contribution to export at 7.27%.

In a bid to ensure adequate financing, a number of Nigerian banks offer loans up to N500 million to help small businesses thrive. In addition to offering relatively low rates of interest, these loans are designed to suit varieties of businesses and some require no collateral.

This platform highlights some of the Nigerian banks offering loans in the country as follows:

Standard Chartered – Smart Business Loan offers up to N20 million

The Standard Chartered smart business loan provides SMEs access to loans of up to N20 million for business expansion with no collateral. According to a statement on the bank’s website, the loan allows for a flexible repayment plan which can be structured to suit businesses and flexible for up to 2 years.

Standard Chartered loan which can be accessed through the bank’s digital application forms automates repayment process and also allows for additional financing during loan tenor. This means that business owners can top up after 12 months if regular repayments are made.

First Bank – SME Product Financing offers N20 million – N500 million

The SME product financing is targeted at the overall growth of small and medium scale enterprises which are key drivers of the economy. According to the bank on its website offers varieties of options for featured SME products at competitive rate and flexible collateral and products.

The product depends on the nature of business and the business type determined the amount that can be made available to improve businesses. For instance, the cement distributor finance offers up to N120 million for 12 months to aid working capital of the distributors for business expansion while the Commercial Mortgage provides maximum loan of N100 million and requires a property purchased collateral as the product is designed to meet the funding needs of established small and medium scale enterprises in viable businesses with respect to acquiring business premises under the outright purchase or construction scheme.

Similar to these, offices seeking fund to increase their assets could be granted the Office Equipment loan which allows businesses to access up to N20 million and above and is designed to finance SMEs that require vehicles for operational use for day to day running of their businesses and the maximum loan is offered to fast moving consumer goods at N500 million for a period of 12 months to finance distributors FMCG companies in the bank approved list of principal for business expansion.

Access Bank – Business loan offers up to N3 million

Access bank business loan allows for the expansion of businesses and are available in different category such as the micro loan, loan for small businesses, ALDA Loans, and over draft.

Micro loan: this is targeted at helping small businesses to expand by offering N100,000 up to 60 months for 12% while loans for small and medium businesses allows for implementation of development plans and solution of financial problems. It offers up to N3 million up to 60 months.

Similarly, ALDA loans is considered a special privileges for the development of agriculture with up to N200,000 for 36 months starting from 7% and Overdraft offers up to N200,000 to 12 months with monthly interest rate up to 1-1.5% with no deposit required.

Union Bank – Union Biz Account offers 50 million

Union bank offers banking services for SMES in the different category with varying loans bucket having specific requirement for different loan facility.

The free cash flow lending which allows businesses to borrow a maximum of N10 million for up to 12 months to finance any short-term working capital requirements while school finance is targeted at school owner, offering N5 million with no collateral required for payment of reoccurring/operating expenses such as school uniform, stationery and others for private schools in nurseries, primary and secondary schools.

Other loan facilities are local purchase order, distributor finance assets finance, term loans, over draft and others. Notably, Union bank local purchase order and invoice discounting gives the highest amount at N50 million for maximum of 90 days.

GTBank – SME Banking offers N50 million

GTBank offers loan to help small businesses grow and connect businesses to the resources needed. The bank offers loan for business account and SME invoice discounting finance.

Business loan facility allows business owners to funds for transactions and cash management services. It consists of the GT Business Account targeted at small medium enterprise with a monthly turnover of N50 million. With minimum balance of N20,000, the domiciliary account allows customers to maintain accounts in foreign currencies, GT Max account, which offers maximum interest payments on daily account balances and minimum charges on transactions, call account as well as fixed and tenured deposits.

The SME invoice discounting finance (SME IDF) is a short term borrowing facility which provides a quick cash flow solution to business needs. Businesses can draw money against invoices (receivables) issued before their clients pay for products supplied or services rendered. This facility offers a maximum of ₦50Million (subject to 70% of invoice value) with competitive interest rate with tenor of 60 days.