How to access Microfinance from BOI

Want create site? Find Free WordPress Themes and plugins.

By Abdulsalam Omowale

BIO MICROFINANCE BANK LOAN REQUIREMENT – FAQs

  1. Who is eligible to access a loan and what type of business does the bank finance?

Loans can be accessed by an individual or a group (solidarity group or registered cooperative). The bank finances a wide range of businesses in the under-listed sector:

  • Manufacturing and processing
  • Agriculture and Forestry
  • Service
  • Trading

How to access Microfinance from BOI BOI Bank of Industry1

The bank specifically encourages businesses involved in value-addition to apply.

  1. Can a prospective borrower access a loan without prior banking relationship?
  • A prior relationship is a must.
  1. What are the account opening requirements?
  • 2 recent passport photographs
  • Copy of a valid identity card (Driver’s license, National Identity card, International Passport and Voter’s Card)
  • Utility bill (paid within the preceding 3 months)
  • Initial deposit
  • Completed KYC form provided by the bank
  1. What is the minimum account opening amount?
  • Minimum account opening deposit is N3, 000. In the instance were the customer submits an application for loan, the bank will conduct a search at the credit bureau at a cost of N2, 000. This amount will be deducted from the N3,000 irrespective of whether the search is favourable or not or if the loan is approved or declined.
  1. What is the minimum account balance?
  • Minimum account balance is N500
  1. What is the maximum loan I can access?
  • The amount of loan a prospective borrower can access depends on an assessment of capacity to repay and the adequacy of the collateral pledged.
  1. As a prospective borrower what loan requirements must I fulfil?
  • A loan shall be approved for a prospective borrower if he/she can demonstrate that there is sufficient capacity to repay the loan in line with the approved loan conditions. The prospective borrower will be required to provide the following:
  • Valid means of identification
  • 2 recent passport photographs
  • Statement of account for a minimum of 6 months and pay slips covering an equivalent period for salary earning borrowers.
  • Utility bill (within the preceding 3 months)
  • Signed post-dated cheques
  1. Do I need to provide a Guarantor?
  • The borrower may also require more than one guarantor depending on the loan size and other loan considerations.
  1. What are the Guarantor requirements?
  • The guarantor must provide the following:
  • Valid means of identification
  • 2 recent passport photographs
  • Statement of account for a minimum of 6 months and pay slips covering an equivalent period for salary earning guarantors
  • Signed post-dated cheques
  1. How long does it take to obtain a loan?How to access Microfinance from BOI BOI Bank of Industry
  • Once all loan requirements have been fulfilled by the prospective borrower, the bank will normally disburse the loan within 7 working
  1. If my loan request is granted, where would I make the loan repayment?
  • Loan repayments can be paid at the bank or at any of the bank’s correspondence banks nearest to you.
  1. If I have a loan with another financial institution, can the bank approve a loan for me?
  • The bank can approve a loan even if you have a loan with another financial institution insofar as you have indicated this clearly in the application form.
  1. Does the bank insist on savings alongside loan repayment?
  • Yes, the bank’s loan repayment plan includes an on-going savings of 20% of the approved loan over the tenor of the loan. For example, if the bank approves a loan of N100,000 with a tenor of 12 months, the borrower in addition to the monthly loan payment will remit the sum of N8, 333.33 as compulsory savings.
  1. When will the compulsory savings become available to the borrower?
  • Once completion of the loan repayment, the full compulsory savings can be withdrawn by the borrower.
  1. Does the bank finance contracts and Local purchase Orders?

      • No.

  1. Can I use my car as collateral for a loan?
  • Yes, you can.
  1. Would I have to park it at the bank’s premises?
  • Not necessarily. The Relationship Officer will however need to inspect the vehicle at the bank’s premises and the original vehicle documents will also be made available to the bank.

Related Posts
5 Tips For Winterizing Your Sprayer
BEFORE YOU TUCK YOUR SPRAYER AWAY FOR THE SEASON, PERFORM THESE MUST-DO TASKS. Your sprayer has worked hard this season, and it’s time to give it a much-deserved rest. Before you ...
READ MORE
How Best To Grow Wheat –IAR Director
Wheat, a highly versatile crop, is used in making foods like bread, biscuits, cookies, cakes, spaghetti, and noodles. It is also used for making local foods like ‘Tuwo’, ‘Alkaki’, ‘Fura’, ...
READ MORE
Missouri Hereford Cattle - Goodman
Pasture management and grazing systems vary greatly between regions of North America. No matter when the grazing season begins in your area, there are a few common components in preparing ...
READ MORE
Sweet potatoes
Sweet potato is tropical herbaceous plant which, by the nature of its temperature requirement, can be grown throughout Nigeria. States like Kaduna, Kano, Zamfara, and Sokoto in the North-west are ...
READ MORE
Copyright: Sven Torfinn/Panos
Ever wonder how to break though yield barriers? Or maybe how to tweak your crop rotation to make sure it’s firing on all cylinders? A panel of farmers at an ...
READ MORE
How To Start Tomato Farming
Have you ever thought of starting your own tomato farming business in Nigeria?You may think that only the northern part of Nigeria grows tomatoes, but I can tell you that ...
READ MORE
How to Start a Palm Kernel Oil Extraction Company
Are you interested in starting a palm kernel oil extraction business? Do you need a sample palm kernel oil extraction business plan template or feasibility study report? Then I advice you ...
READ MORE
Better Ways To Manage Yam Farm – Researcher
Yam is one of the nation’s most valuable tuber crops. The demand for yam is generally very high in Nigeria. In some societies in Nigeria, festivals are staged to mark the ...
READ MORE
How To Obtain NAFDAC Registration
Entrepreneurs who are into the manufacturing of food or drugs would readily agree that a major hurdle they had to cross was getting their product registered by the regulatory authority ...
READ MORE
How To Start Quail Eggs Business And  Benefits
This special report exposes you to the little known but amazing medical and financial benefits of quail birds. You’ll get to discover huge secrets about the potency of this tiny ...
READ MORE
5 Tips For Winterizing Your Sprayer
How Best To Grow Wheat –IAR Director
How To Manage Forage, Grazing Systems
Best Ways To Farm Sweet Potato, By Expert
How To Boost Your Yields
How To Start Tomato Farming
How to Start a Palm Kernel Oil Extraction
Better Ways To Manage Yam Farm – Researcher
How To Obtain NAFDAC Registration
How To Start Quail Eggs Business And
RELATED POST
Did you find apk for android? You can find new Free Android Games and apps.