The Bank of Industry, BoI is not your regular money deposit bank.

It is known as a development lender, providing cheap, government subsidised funds to businesses.

It originally targets only specialized sectors such as the manufacturing or processing businesses.

But it also has series of intervention funds targeted at other sectors that are not necessarily manufacturing or processing.

If you are a business owner seeking to get a loan from the bank, part of your due diligence should involve understanding the following.

Also Read: Top 5 Venture Capital Firms In Nigeria

1. BoI Loan Is At Single Digit Interest Rate:

The BoI offers credit at single digits.

Unlike commercial banks and other financial services providers that offer loans at double digit interest rates, the BoI’s loans is at a single digit interest rate of 6%.

But don’t misunderstand this. Nigeria’s base interest rate is at 14%. That is the Central Bank of Nigeria’s Monetary Policy Rate, MPR.

So, the BoI’s interest rate is on top of the MPR.

So, when you do the math, you will see it is actually 20% but that is about one of the cheapest you can find in the lenders’ market.


2. BoI Finances Only Registered Businesses: The BoI only finances enterprises or companies and not an individual person or group of persons.

The company/enterprise must be duly registered and you will be required to provide the registration number for a Limited Liability Company or business name for an enterprise before you can proceed with your application.

Real Also: 3 Reasons A Bank Won’t Fund Your Startup


3. You’re More Likely To Get Funding For Industrial Equipment: So, the BoI is set up principally to finance industrial equipment used in manufacturing.

If for instance, you run a business that processes chicken feeds, you are likely to get a BoI loan than if you are just rearing broilers and selling them.


4. BoI Won’t Pay You Cash: Assuming the BoI decides that you are qualified for a loan.

It will not credit you account with the loan sum. Instead, it will pay your suppliers of the equipment the total sum that the loan is worth.


5. BoI’s Loan Starts From 5 Million Naira: BoI’s loan support to the SME starts from 5 million naira.

However, loan below N5 million are provided under an initiative known as The Matching Fund.

It is operated in collaboration with various state governments and on the BoI’s Bottom of the Pyramid (BOP) scheme which is operated through Micro-finance Banks.

6. BoI’s Loans Are Not Collateral-Free: Any loan you secure from the BoI is not collateral-free.

The bank requires that you pledge some assets to secure you loan. Some of the collateral that it needs range from landed property to bank guarantees.

Also Watch: Bounce Masterclass: How to write a winning CV