The DBN Loan programme is made to provide short and long-term business loans to entrepreneurs looking to get funding for their businesses. If you are interested in getting funding to start your own business, you can consider the Development Bank of Nigeria loan.
We will provide with the requirements, steps to apply, interest rate, pros and cons and everything you need to know about getting a loan from the Development Bank of Nigeria.
Nigeria is one of the best commercial places in Africa that boasts of so many business ventures and enterprises. There are more than 30 million Medium Scale Enterprises (MSMEs) in Nigeria and they all contribute a quota to the Gross Domestic Product (GDP) of the country.
Sadly, most of these MSMEs lack access to capital and this is one of the challenges of doing business in Nigeria.
Small and Medium Entreprises (SMEs) need funding for their business and poor credit facilities could deny them access to getting business funding.
A majority of the Nigerian populace are low-income earners. Business startups and MSMEs in Nigeria are vulnerable to failure due to lack of financial risk-management tools such as insurance, credit facilities and insurance.
About Development Bank of Nigeria (DBN)
The Development Bank of Nigeria (DBN) is an institution set up by the Federal Government of Nigeria in alliance with foreign partners to tackle the financial constraints faced by Micro, Small and Medium Scale Enterprises (MSMEs) in the country.
The primary objective of the Development Bank of Nigeria is to eliminate the financial difficulties and challenges facing the Micro, Small and Medium Scale Enterprises (MSMEs) in Nigeria.
This is done by providing partial credit guarantees, financial aid and technical assistance to qualified financial intermediaries on a market-conforming and fully financially sustainable basis.
The Development Bank of Nigeria is a partner of various international financial and development agencies such as;
- African Development Bank (AfDB).
- French Agency for Development (AFD).
- European Investment Bank (EIB)
- KfW Development Bank (a government-owned development bank in Germany) and
- World Bank (WB).
Therefore, the Development Bank of Nigeria provides support for the development of small businesses and startups in Nigeria by providing them with credit facilities which will help them to overcome the financial challenges which they face in the day-to-day running of their businesses.
Who Can Get The DBN Loans?
The Development Bank of Nigeria (DBN) is not a place for people to get personal loans. Hence, it is a financial institution for startups, Micro, Small and Medium Scale Enterprises (MSMEs) or entrepreneurs who are engaged in active business ventures in Nigeria.
If you are an entrepreneur or a small businessman or woman, you are eligible to get a loan from the Development Bank of Nigeria.
Requirements For DBN Loan
MSMEs, business owners and startups are qualified for the DBN loan as long as they meet the criteria for getting the loan. The following are the requirements for the Development Bank of Nigeria loan.
- MSMEs (both startups and existing) must be involved in productive enterprises.
- MSMEs (both startups and existing) must be customers of Participating Financial Institutions (PFIs).
- MSMEs (both startups and existing) must obtain DBN loans through Participating Financial Institutions (PFIs).
Participating Financial Institutions (PFIs)
The Participating Financial Institutions (PFIs) are major commercial banks, Development Finance Institutions (DFIs), microfinance banks and other financial institutions.
You can get the Development Bank of Nigeria loan through any of the following PFIs by contacting any of these banks listed below:
- Access Bank Plc.
- Ecobank Nigeria Bank Plc.
- Fidelity Bank Plc.
- FCMB Ltd.
- Guaranty Trust Bank (GTBank).
- UBA Plc.
- Wema Bank Plc.
- First Bank Nig Ltd.
- Union Bank of Nig Plc.
- Stanbic IBTC Bank Plc.
- Sterling Bank Plc.
- AB Microfinance Bank Nigeria Ltd.
- Addosser Microfinance Bank.
- Baobab Microfinance Bank.
- Bosak Microfinance Bank.
- HASAL Microfinance Bank.
- Infinity Microfinance Bank Ltd.
- LAPO Microfinance Bank Ltd.
- Mainstreet Microfinance Bank Ltd.
- Microcred Microfinance Bank Ltd.
- NPF Microfinance Bank Plc.
- Parallex Microfinance Bank.
- Seedvest Microfinance Bank.
- Accion Microfinance Bank Limited.
- LaFayette Microfinance Bank Limited.
- Davodani Microfinance Bank.
- Trust Microfinance Bank.
How To Apply For DBN Loan
The following are the steps to how to get a loan from the development bank of Nigeria for your business;
- Visit any financial institution such as commercial banks, Development Finance Institutions (DFIs), microfinance banks and indicate your interest to apply for the DBN loan.
- The bank considers your business along with the loan purpose. After assessment and evaluation, if you are qualified, the Bank proceeds to the DBN for funding.
- Your loan request gets to DBN and if it is approved; the Development Bank of Nigeria will disburse the loan to the bank to give to you.
Note that businesses do not obtain loans directly from the Development Bank of Nigeria (DBN). DBN loans can only be obtained via PFIs.
Also, if you don’t have an account with any of the Participating Financial Institutions (PFIs), you’ll not be able to get the loan.
In other words, it is very important for you to have an account with any of the banks that is a Participating Financial Institution of the Development Bank of Nigeria.
DBN Collateral Requirement
The collateral requirement isn’t specified but varies according to the bank or institution. After the bank receives the loan application, then decide on the best collateral requirement for you.
In other words, the DBN loan collateral requirement is determined by the bank where you applied for the loan.
How To Repay
The repayment schedule for the DBN loan is very flexible. It ranges from 18 months to 2 years depending on the objective behind the loan.
Depending on the loan purpose and the nature of your business, you may be provided with up to eighteen (18) months moratorium on principal repayment for investment projects and working capital. Also, the DBN loans have a longer tenure compared to other commercial loans.
Hence, you may have up to 10 years to repay the loan. One of the factors that determine when you pay back is the size of the loan.
The Development Bank of Nigeria offers flexible interest rates to loanees. These interest rates are determined based on the tenure and reference to the market rates.
|Decent interest rate.||No Mobile App.|
|Issue long-term loans.||They don’t give loans directly to businesses.|
|No collateral needed.||No quick loans.|
Email Address: email@example.com.
Phone number: 0700-0225-5326, +234-9-904-0000, +234-811-3841-699.
The Clan Place, Plot No 1386A Tigris Crescent, Maitama, Abuja.
Call: +234-9-904-0000, +234-811-3841-699
Plot 952/953 Idejo Street, Victoria Island, Lagos, Nigeria
The DBN loan application forms can be obtained at the Participating Financial Institutions (PFIs) which are listed and recommended by the Development Bank of Nigeria.
The Development Bank of Nigeria loan is specifically made to provide funding for businesses. If you are looking to get money to start a business, you can consider getting the DBN Loan.