Olamide Famuwagun

The bank of industry (BOI) exist majorly to help organizations in different sectors to achieve growth. Due to their purpose, the institution regularly gives out grants and funds to different sectors to fast track their development that of the economy at large. This article takes a look at the different BOI intervention funds, as well as everything else that you should know.

An overview on BOI Intervention Funds

The bank of industry (BOI) is the largest, most successful, and oldest development finance institution in Nigeria. BOI was reconstructed out of the Nigerian Industrial Development Bank (NIDB) Limited in 2001. However, NIDB has been in existence since 1964. The Bank of Industry has a mission to transform Nigerian’s industrial sector by providing support services and finance for businesses across the nation. Their reach covers small, large, and medium establishments and projects.

Some core values of Bank of Industry are:

• Service
• Professionalism
• Passion
• Integrity
• Innovation
• Team spirit  

What are the objectives of the BOI intervention funds?

BOI intervention funds are categorized into two. They are:

Matching fund: 

the available funds under this category are:

BOI/ State Matching funds: 

this fund is based on the partnership between BOI and some state governments. They are available to cooperatives, limited liability companies, and enterprises engaged in manufacturing and Agro-processing. It offers a maximum of N50 million and interest range between 5% to 10%.  

BOI/ Dangote Foundation Matching Fund: 

this fund is made available from a collaboration between BOI and Dangote foundation. It is N5bn fund that is available for companies in the merchandising, manufacturing, and Agro-processing sector of Nigeria. It has a per head limit of N50 million at 5% interest.    

Managed fund: 

the available products under managed funds are:

BOI/CBN Intervention fund: 

this fund comes in different sections, which are the N235 Billion VBN fund for manufacturing and restructuring facilities of bank loans, and N300 billion for power and airline intervention fund. The N236Bn focuses on the manufacturing section to improve credit availability to manufacturers. On the other hand, the N300Bn exist to fast track the development of the aviation and power industry.

NADDC Fund: 

the national automotive council fund is a sum of N16,91Bn that is aimed at developing SMEs in automotive parts production. The BOI collaborates with the National Automotive Council (NAC) to this regard.

FGN special intervention fund for MSME (NEDEP): 

this intervention provides subsidized loans to SMEs for their development. It has an interest rate of 9% per annum.

Other interventional funds offered by the BOI are:

• Cassava Bread Fund
• Cement fund
• Cottage fund
• National Program on Food Security (NPFS)
• Rice and Cassava Intervention fund
• Sugar development council fund

What other products does BOI offer?

Asides from managed and matching fund, BOI also offers the following products:

1. ASM Fund
2. Bottom of pyramid
3. Fashion and beauty product
4. Light manufacturing
5. Food and Agro commodity processing
6. Graduate entrepreneurship fund
7. Nollyfund
8. On- lending to commercial banks
9. Solar energy
10. Youth entrepreneurship support (YES) programme
11. Youth ignite programme

How do I apply for BOI intervention fund?

To apply for any of the funds, simply follow the procedure below:

1. Visit their website at https://www.boi.ng,
2. Select the most appropriate fund option for your line of business and industry
3. Click on the option, the scroll to the bottom page
4. At the bottom, you would find the “click here to apply” option.

Conclusion

The BOI intervention funds provide access to loan and grant opportunities that you can maximize to grow your business. Their products and services cut across all categories, and have really helped a lot of businesses since inception.

Have you ever been in a situation when you are cash strapped and desperately need financial aid for your business? Well, we understand how this feels.  You need not worry about those expenses, Grofin loans got you covered.

In this article, we have carefully reviewed all you need to know about getting a loan from Grofin. This includes the requirements, interest rate, amongst several other things you need to know.

About Grofin Loans

Grofin is one of the fast-rising Financial Institutions in Nigeria. They are an impact-driven SME financier with a vision to help entrepreneurs succeed at their businesses. They however achieve this by providing business owners with business support and loans. Furthermore, it is a belief of the organization that the most powerful driver of social and economic development is the SME sector which creates stable jobs.

They have their headquarters in Mauritius and they generally offer support to SMEs in 14 countries in Africa, including Nigeria and in the Middle East. Additionally, they have the maximum support of 14 financial institutions and private funders who have committed about $335 million in capital to their fund.

What are the Pros and Cons of Grofin Loans?

• They have a flexible repayment option for their customers
• The amount of loan they will give to your business will be enough to cater to all your needs.
• Excellent loan tenor. (Up to 8 years)
• Up to date, they have supported about 9,630 Entrepreneurs
• They have approved up to about $385m business loans for entrepreneurs

Cons

• They require collateral.
• The process might be rigorous for anyone who needs quick cash.

What are the maximum and minimum amount you can borrow?

The major reason for the existence of Grofin is to help SME business owners succeed in their business. On that note, Grofin ensures they provide enough money to cater to your business needs. Once they review your application and approve it, they make it available to you for about $100,000–1 Million.

What Interest rates apply with Grofin?

This depends on the amount you wish to borrow. However, in general their loan interest rate rises up to about 15% of the amount you borrowed.

What are the minimum requirements for taking up a loan with Grofin?

The minimum requirements for taking a loan with Grofin are not farfetched. However, before you can qualify for a loan with them, you have to meet up their eligibility criteria.

 Below are the eligibility criteria for obtaining a loan with them.

• Your business must be in any of the following African countries: Ghana, Nigeria, Egypt, Kenya, Tanzania, Rwanda, South Africa, Zambia, and Uganda.
• The Business must belong to you
• Your business must have a turnover of 1.5 times your loan amount
• You must have been operating your business for 2 years or more.
• Your business must be profit-oriented.
• You will need collateral to secure the loan

How fast are funds released?

Grofin funds release is lightning-fast. However, this is only possible if you satisfy all the necessary requirements after they have reviewed your application.

How do I apply for Grofin Loans?

As we have earlier stated, getting a loan from Grofin might be a little strenuous for you. However, if you persevere and go through the process, it would be worth it.

To get a loan from Grofin, kindly follow the following procedures:

• Visit their official website on www.grofin.com
• Click on the Menu Icon on the far right corner of the Page
• Select the Loan that interests you. It could be either business loans, women’s Entrepreneurs loans or Business support.

After this, they will require you to go through 4 stages. Which includes:

• Taking Online Assessment
• Filling an Application form
• Review of the documents you provided
• Approval/Rejection.

However, if you scale through these four stages successfully, your loan will be disbursed into the account number you supplied.

 How do I contact Grofin Loans?

Feel free to contact Grofin Loans via any of the following media:

Head office:

• Real plaza (Ground Floor) Plot 1 Dosumu street, off Hakeem Balogun Street, CBD, Agindingi, Ikeja Lagos
• 77 stadium Road Port Harcourt, Rivers state.

Email Address: info.nigeria@grofin.com or info.portharcourt@grofin.com

Official website: www.grofin.com

Mobile Number: +234 7056966666, +2349090001346 (Lagos). +2347052951455(Port Harcourt)

Conclusion.

Grofin is one of the best lending and fast loan company for SMEs in Nigeria and Africa at large. Their Interest rates are affordable, and they offer a loan tenor of up to 8 years. Simply visit their official website to secure a financial loan for your business.

Nigeria has one of the highest poverty rates in the world, and a larger percentage of this are the youths. Because of this, the government created different empowerment programs and funding schemes to encourage entrepreneurship. Developing businesses is the fastest way to getting rid of unemployment in the country, and the Nigerian youth investment fund addresses just that. Here’s everything you should know about the Nigerian youth investment fund.

What are the objectives of the Nigerian youth investment fund?

1. The government developed the Nigerian youth investment fund to target Nigerian youths and has a goal to generate at least 500,000 jobs between 2020 and 2023. According to the official release, the objectives of this scheme are:
2. To improve access to finance for youths and youths and youth owned national development
3. Generate much needed employment opportunities to curb youth restiveness
4. Boost the managerial capacity of the youth and develop their potential to become the future of large corporate organization
5. This scheme is funded with an initial take off seed capital of N2.5 billion.

What are the eligibility criteria of the Nigerian youth investment fund?

You must fulfill the following qualification and document criteria to be eligible for this fund:

1. A youth within the age range of 18 to 35 years
2. Own a registered business domiciled and operational in Nigeria
3. You must have not been convicted of any financial crime in the last 10 years
4. Must hold a valid Bank Verification Number (BVN)
5. Possess local government indigene certificate

Also, the Nigerian youth investment fund registration requires the following document from you:

1. Evidence of registration with Corporate Affairs Commission (Certificate of incorporation and form CAC 2A)
2. Business questionnaire
3. List of business directors and their BVN numbers
4. Evidence of regulatory approvals where applicable
5. Tax identification number (TIN)

Nigerian youth investment fund – ineligible applicants

You are ineligible to apply for the Nigerian youth investment fund if you are currently a beneficiary of NMFB loans at the time of application. These loans include the Targeted Credit Facility (TFC) and Agric business/small and Medium Enterprises Investment Scheme (AgSMEIS). Also, you cannot apply as a beneficiary of other government loan schemes.

What businesses are eligible to enjoy the Nigerian youth investment fund?

The Nigerian youth investment fund is accessible by the following businesses:

1. Technology and innovation
2. Agriculture and related value chain
3. Green economy and renewable energy sector
4. Manufacturing
5. Hospitality and tourism
6. Construction
7. Logistics and supply chain
8. Healthcare value chain
9. Creative sector
10. Trading and services
11. The NYIF and CBN may include others from time to time.

However, note that preference is given to enterprises that support the growth of priority sectors. The businesses are identified by the Economic Recovery Growth Plan (ERGP) and the Nigerian Youth employment action plan.

Are there any other perks?

Yes, there is one. They mandate all applicants to go through entrepreneurship training, which is arranged and approved by the Federal Ministry of Youth and Sports Development.

What are Nigerian youth investment fund terms?

The terms and conditions of the Nigerian youth investment fund are as follows:

1. Loan rate: 

For unregistered individual businesses, the stated amount is a maximum of N250,000, subject to the activity and nature of the project. Registered businesses, on the other hand, are subjected to a maximum loan sum of N3.0 million including work capital. It depends on the nature and activity of the project.

2. Tenor: 

The loan is subject to a maximum of 5 years, depending on the asset required and nature of the business.

3. Interest rate: 

the interest rate shall not be more than 5% per annum.

4. Moratorium: 

The scheme allows a moratorium of up to 1 year depending on the nature of nosiness and asset acquired.

5. Bank: 

The eligible financial institution for this scheme is the NIRSAL Microfinance Bank (NMFB).

6. Collateral: 

The NMFB would leverage on the General Standing Instruction (GSI) as collateral.

7. Repayment: 

repayment would be made to the NMFB by beneficiaries according to the repayment schedule and work plan as agreed during the application process.

How do I apply for the Nigerian youth investment fund?

The application procedure for this loan is very easy. To apply, simply visit the official website at www.nyif.nmfb.com.ng and follow the procedure. On successful credit checks, processing and confirmation, NMFB shall release funds accordingly to approved enterprises.

Conclusion

This scheme is designed to provide funds for youths to be able to chase their dreams in entrepreneurship. If you are a business owner, we highly encourage you to apply for this, for your betterment and that of the economy as a whole. 

The reality of things is that only a few people go through life without obtaining a loan. At one point or the other, you might have to get a loan to pay for an asset or a new car or even invest in a business. For whatever reason it is, one common factor is that you have to sign a loan agreement. This agreement is between the loan giver, and you the loan receiver. Whichever side you are one, you have to understand the standard clauses in a loan agreement to help you navigate the terrain.

This article would inform you of everything you need to know about these clauses and a bit of extra information too.  

Why is a loan agreement important?

A loan agreement is a binding contract between all the parties involved in a loan, signed to formalize the loan process. These agreements could come in different forms, ranging from simple payback promise notes between friends to more explicit ones, as seen offered by banks. A loan agreement stands as a binding contract of the obligations of all parties in the loan and can stand in court.

Federal and state guidelines govern loan conditions and agreements. This is to prevent extortion due to illegal or excessive interest rates on repayment.

What are the details of a loan agreement?

Loan agreements usually include:

1. Covenants
2. Value of collateral involved
3. Guarantees
4. Interest rate terms
5. Duration of repayment

Also, it clearly states the default terms and conditions in the agreement to avoid confusion or legal implications. They specify the terms of collecting outstanding debts in case of a default, and the specific cost involved in collecting the debt.  

What are the standard clauses in a loan agreement?

We considered the most standard loan agreement contract in selecting the clauses that should appear in a loan agreement. It is a contract between the bank and a borrower. Please note that restrictions to these clauses are not to banks alone, and could be included in other loan contract agreement.  

Interest fluctuation clause: 

This clause gives the bank a right to select an interest according to their base rate fluctuations. This means the bank can alter interest rates when they change their base rates without your approval.

Definition of default: 

The bank (borrower) determines the terms of a default, as it transcends simply missing a predetermined fixed interest payment. You should thoroughly read the terms of default, as defined by your bank.

Clauses regarding disbursement: 

This depends on the nature of the loan. For example, a building loan could include a disbursement clause that states that the money would be disbursed directly to the contractor and not you. In such a case, although you are the borrower, they would not release the money to you.

You could also have a disbursement situation where the loan is released to you directly, and you determine how it is used. The bank would state all these conditions in the contract.

Force majeure clause: 

This is a clause in which most banks include in a loan agreement. It gives the lender (bank) the right to unfix the fixed interest rate in the event of unforeseen economic situations like inflation. Go through your agreement contract to understand this clause and avoid future disputes.

Reset clause: 

This clause applies to fixed-rate loans. In some of these loans, they include a reset clause to allow the bank to reset the rate to a higher level after some years. This happens especially when interest rates seem to show a rising trend.

Debt collection by third parties: 

Most lending banks include a clause in their loan contract that enables them to transfer your details to third party collectors. They can do this without informing you, and from there on, the third party takes charge of recovering the loan. It mostly happens after you default.

Amendment clause: 

This is a very precarious clause that allows the bank to amend the conditions of your loan agreement without prior notice. Always read it in detail to know what it entails if you find one in your loan agreement.

Conclusion

These standard clauses in a loan agreement could vary from one lender to another. Although you could find some missing, or not, they remain the standard applied by most banks.

Always take time to go through each individual clause in order to know what you are getting into. Ignorance has led to so many issues between borrowers and lenders in the past. Do not be caught unaware. You can further read about loan documents here.