 |
| Bank of Industry Loan Requirements |
The Bank of Industry (BOI) is Nigeria’s foremost development finance institution, providing affordable loans to registered businesses across manufacturing, agro-processing, ICT, and creative industries. Whether you're starting a company or scaling an existing venture, understanding BOI’s eligibility criteria and documentation requirements is essential.
Who Can Apply for a BOI Loan?
- Only registered business entities (LLC or Business Name) are eligible—individuals or unregistered groups are excluded
- Priority is given to SMEs in agro-industrial, ICT, solid minerals, fashion, renewable energy, and export-focused sectors (BOI SME overview)
- Eligible enterprises include micro-, small-, medium-, and large-scale businesses (loan limits range from ₦5 million to over ₦1 billion) (BOI target industries)
Types of BOI Loans and Sectors
BOI provides different loan programs:
- Microcredit Loans (Bottom-of-Pyramid/BOP): ₦10M max, delivered via BOI Microfinance Banks (structure overview)
- SME Term Loans: ₦5M and above; longer tenor, working capital or equipment financing
- Intervention Funds managed with state governments (e.g. Edo MSME Fund) offering ₦1M–₦20M at low interest rates (5–6% annually) (state matching fund example)
Core Requirements for BOI Loans
1. Business Registration Documents
- CAC Certificate of Incorporation or Business Name
- Certified Memorandum & Articles of Association (LLCs)
- CAC forms C02, C07, C01 (where applicable) (requirements summary)
2. Business Plan & Feasibility Study
A comprehensive plan including:
- Business model, market analysis, projections
- Quotations for equipment, machinery, or raw materials
- CVs of the management team (detailed checklist)
3. Financial Records
- Last 6–12 months of bank statements
- Audited financial accounts (1–3 years) for existing businesses
- Statement of Affairs for newer ventures (financial docs)
4. Collateral & Guarantees
- Collateral must be ≥150% of the loan value (e.g. landed property, debentures, bank guarantees)
- For loans under ₦10M, notarized external guarantors may suffice (collateral rules)
5. Minimum Promoter Contribution
- Borrowers must inject at least 25% of the project cost, excluding land cost
- This demonstrates commitment and reduces default risk (promoter contribution requirement)
6. Management & Creditworthiness
- A track record of responsible financial management
- Clean credit history—no outstanding debts or defaults
- For startups: a capable founding team with verifiable expertise (credit criteria details)
Additional Requirements for Microcredit
Through BOI’s Microfinance Bank, applicants must also provide:
- A formal application letter and completed form
- Cooperative’s constitution (for groups)
- Four passport photographs of the promoter
- Business sales records and operating data
- Utility bill and valid ID (microcredit documentation)
Tenure, Rates & Disbursement
- Loan tenor: 12 to 60 months, with 3–12 months moratorium period
- Interest rates: between 5%–10% per annum depending on loan type and fund
- Disbursement is made directly to suppliers, not the borrower, ensuring funds are used for project assets (loan mechanism explanation)
How to Apply
- Visit the official BOI loan portal at boi.ng/apply
- Or attend a regional BOI office or affiliated SME consultant
- Complete and submit all required documents and fees (e.g. CBN credit check through BOI MFB)
Final Checklist
- Proper CAC registration and board documents
- Well-prepared business plan and quotations
- Bank statements and financial records
- Collateral and guarantors prepared
- Minimum promoter contribution available
- Clean credit history and proof of capability
With the right preparation and documentation, BOI loans can provide significant working capital or term finance at competitive rates—unlocking growth for Nigerian enterprises.
 ){kind=link}