Bank of Industry

Interest Rate (0% – 17%)


Category: Tag:


Bank of Industry

The Bank of Industry is a development finance institution focused on providing loan credit facilities for industrial equipment used in manufacturing. The Bank is wholly owned by the Federal Government of Nigeria. The bank does not disburse the loan to the borrower in cash but to the vendors and suppliers of the equipment that the loan application is for.

Target sub-sectors include Agro-processing, Solid Minerals, Information Technology, Oil and Gas and Creative Industry. BOI’s loan support to the SME starts from N5 million. The BOI accepts collateral other than landed property. They also know about the difficulty in obtaining C of O’s and actively embark on advocacy to the states affected.

Start or grow your own business with the help of a government-backed Start Up Loan. A great alternative for individuals looking for business loans to fund their start up. The BOI has dedicated time, energy and money to helping small businesses thrive.


  • SME Term loan – BOI offers loan products tailored to meet the business needs of Small & Medium Enterprises (SME). SME finance is a financing solution accessible for specific business medium term projects.
  • Working capital loan
  • Graduate Entrepreneurship Fund
  • Government Enterprise & Empowerment Programme
  • Youth Entrepreneurship Support Programme


  • Low interest rate
  • High Loan amount


  • Numerous documentation required
  • Loans is disbursed directly to vendors


  • Legal mortgage on a landed property. The property must be duly registered with a Certificate of Occupancy
  • Debenture on assets of the company
  • Bank Guarantee
  • External Guarantors with Notarized statement of Net worth for loans below N10 million.


  • Interest rate on Term loans: range between 5% and 10% per annum.
  • Interest rate on Working Capital loans: 12.5% per annum for SMEs, 15% per annum for Large Enterprises
  • Appraisal Fee: 1% of loan amount payable on collection of letter of loan offer. This fee is non-refundable.
  •  Commitment Fee: 1% of loan amount payable upon acceptance of Loan Offer Letter. This fee is non-refundable.
  • Monitoring Fee: 0.125% on the outstanding loan balance payable quarterly in arrears.
  • Revalidation Fees: 1% of the loan amount.
  • Loan Restructuring Fee: 1% of the restructured amount.
  • Penal Charge on Outstanding Balance upon Expiration of Facility Tenor: 2.5% of outstanding amount per month.