DBN Loan Application, Requirements and Eligibility – There’s good news for Micro, Small and Medium Enterprises (MSMEs) as the Development Bank of Nigeria (DBN) is set to offer low-interest loans to MSMEs to boost their business and the Nigerian economy in general.
What is DBN LOAN
The DBN (Development Bank of Nigeria) is a wholesale financial institution which aims to increase access to finance for Micro, Small and Medium Enterprises (MSMEs) through eligible financial intermediaries. It was conceived in 2014 however, its take-off had been delayed with President Muhammadu Buhari led administration inheriting the project with a determination to resolve all outstanding issues and set a target of 2017 for its take-off.
Benefits of DBN Loan
As a wholesale bank, the DBN will lend wholesale to qualified Microfinance Banks which will then offer long-term loans to MSMEs. All MSMEs (startup or existing) involved in productive enterprises are eligible for the loan. However, they must be customers of the eligible financial institutions
Eligible Banks you can get DBN Loan
The eligible financial institution currently are;
- Diamond Bank
- Fidelity Bank
- Eco Bank
- Wema Bank
- AB Microfinance Bank
- Infinity Microfinance Bank
- LAPO Microfinance Bank
- Microred Microfinance Bank
- NPF Microfinance Bank.
How to get a DBN Loan Application
- Visit your bank: Commercial Bank, Microfinance Bank, Development Finance Institution (DFI) and other Financial Institutions and indicate you want to apply for a DBN Loan.
- The Bank appraises the business and loan purpose, and if its assessment is favourable, the Bank applies to DBN for funding.
- If DBN approves the loan, DBN will disburse to the Bank for on-lending to end borrowers.
Repayment of DBN Loan
The repayment tenure for DBN loan is flexible (up to 10 years with a moratorium period of up to 18 months) and the interest rates are on a market-conforming and fully financially sustainable basis.
The DBN will have access to US$1.3bn (N396.5 billion), which will be provided by the World Bank (WB), KfW (German Development Bank), the African Development Bank (AfDB) and the Agence Française de Development (French Development Agency).
The DBN will obviously impact the economy positively especially as MSMEs contribute 48.47 percent to the Gross Domestic Products (GDP) of Nigeria but have access to only about 5 percent of lending from Deposit Money Banks (DMBs).
The influx of additional capital from the DBN will lower borrowing rates and the longer tenure of the loans, will provide the required flexibility in the management of cash flows, giving businesses the opportunity to make capital improvements and acquire equipment or supplies.
As the economy diversifies, the growth of the MSME sector will have a positive impact on the economy through employment generation, wealth creation and economic growth
Bank Contacts for DBN Loan
|Diamond Bank Plc||Ayodele Olojede – firstname.lastname@example.org|
|Ecobank Nigeria Bank Plc||Nelson Paseda – NPASEDA@ecobank.com
LAWAL Theresa – TOLAWAL@ecobank.com
|Fidelity Bank Plc||Osaigbovo Omorogbe – email@example.com|
|Wema Bank Plc||Dotun Ifebogun – firstname.lastname@example.org|
|AB Microfinance Bank Nigeria Ltd||Nnadozie Joseph – email@example.com|
|Infinity Microfinance Bank Ltd||Oludotun Adewunmi – firstname.lastname@example.org|
|LAPO Microfinance Bank Ltd||Efosa Aigbe – email@example.com|
|Microcred Microfinance Bank Nigeria Ltd||Omar Niaz – firstname.lastname@example.org|
|NPF Microfinance Bank Plc||Jude Ohanehi – email@example.com|