If you’re a fashion designer or producer of fashion accessories in Nigeria and you’re looking to expand your business, the Bank of Industry could help you with the funds you need. It has a loan facility for businesses operating in the fashion industry; you could benefit from it if your enterprise meets the bank’s requirements.
The BOI’s Fashion Fund was launched in 2015 to fill in the role of business credit provider for SMEs in the fashion industry. Its stated goals for the fund include:
Supporting financial literacy and skills acquisition among fashion entrepreneurs, facilitating value addition in the industry, providing access to working capital, and boosting productivity and job creation.
The ₦1 billion fund is available for loan applicants whose applications are considered satisfactory by the bank. Beneficiaries could receive up to ₦30 million in loans from the BOI.
Businesses applying for the BOI Fashion Fund are expected to meet these criteria
- Duly registered within Nigeria as Limited Liability Companies and operate in the fashion industry.
- Shareholding with 51% female ownership
- Operating license from relevant agencies
- A factory or production center to operate from
- Sustainable business model
- Positive net worth
- Use at least 20% local content
- A minimum of 60% Nigerian ownership.
Fees And Security
Successful applicants are required to pay an approval fee (which is 1% of the loan amount), and a commitment fee (also 1% of loan amount). Monitoring fees (0.125%) to be paid quarterly and a 9% annual interest payable monthly are also costs incurred for receiving and maintaining the loan.
Loan beneficiaries will deposit 5% of the loan amount in an interest yielding joint account opened by their companies, with the BOI as its sole signatory.
In addition, recipients of the loan should ensure that their cash flows are able to support loan principal repayment. A referral letter from a representative of the organized private sector or a well-known umbrella body or association, as well as a statement of net worth from two guarantors, are other security requests made by BOI.
A full list of documents the BOI requires of businesses applying for this loan can be downloaded here.
How To Apply
Applications can be sent to the BOI online through its website. Applications can also be submitted to business development service providers, the BOI’s state and regional offices, and its Gender Business Desk.
Find more information here.
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