Loans can be obtained in Nigeria from virtually anywhere and from anywhere. In addition to traditional financial technology institutions and banks, small businesses can obtain loans from other sources.
The Development Bank of Nigeria is one of those reliable and safe places to get loans. We answer questions related to the operation of the Development Bank of Nigeria, its interest rate, and obtaining loans.
Next, we will discuss some frequently asked questions that may arise from obtaining a loan from the Development Bank of Nigeria.
How To Get A Loan From The Development Bank of Nigeria
About The Development Bank of Nigeria
The Development Bank of Nigeria is a program launched by the federal government in association with global development partners. It exists to address the challenges faced by small and medium-sized enterprises.
Its main objective is to reduce the financial constraints faced by these entrepreneurs.
How does DBN manage to achieve this? Simple: it provides financing and partial credit guarantees to suitable financial intermediaries.
Who can benefit from the Development Bank of Nigeria Loan?
As we have established, small and medium-sized businesses can obtain loans from DBN. We will also reiterate that financial institutions are channels through which money and risk-sharing guarantees are provided.
To obtain a loan from DBN, it is imperative that the prospective borrower offers protection to any suitable financial institution. Furthermore, DBN has listed 10 commercial banks and 15 microfinance banks to act as intermediaries.
List of Commercial Banks You Can Get DBN Loans From
- Access Bank PLC
- Ecobank Nigeria PLC
- FCMB Limited
- Fidelity Bank
- First Bank Nigeria Limited
- GTBank Nigeria
- Stanbic IBTC Bank PLC
- Sterling Bank PLC
- Union Bank of Nigeria
- Wema Bank PLC
List of Microfinance Banks You Can Get DBN Loans From
- AB Microfinance Bank Ltd
- Accion Microfinance Bank Ltd
- Addosser Microfinance Bank
- Baobab Microfinance Bank
- Bosak Microfinance Bank
- Davodani Microfinance Bank
- HALAL Microfinance Bank
- Infinity Microfinance Bank Ltd
- La Fayette Microfinance Bank Limited
- LAPO Microfinance Bank Ltd
- MainStreet Microfinance Bank Ltd
- Nirsal Microfinance Bank
- NPF Microfinance Bank Ltd
- Parallex Microfinance Bank
- Seedvest Microfinance Bank
- Trust Microfinance Bank
Obtain a loan from the Development Bank of Nigeria
We have summarized the procedures for obtaining the loan from DBN in three phases:
Visit the bank: Either you decide to go into a commercial bank or its microfinance version, you can simply apply for a DBN loan. All you have to do is indicate interest in the application; That step 1 of 3. Should we also mention that other financial institutions provide this service, unlike traditional banks?
Reasoned Interest: When indicating interest in a loan application, the bank evaluates the business owner’s purpose and overall objective. If this process is successful, the bank applies the DBN directly to the funds.
Get your application: The Development Bank of Nigeria will need to approve the loan for disbursement. Once completed, commercial banks and other financial institutions act as intermediaries between the DBN and the borrower.
When should I complete the loan repayment?
This factor depends on the nature of your business and your intention to take out a loan. However, the Development Bank of Nigeria provides an extension of up to 18 months on the basic payment for working capital and investment projects. After that, you have up to 10 years to make the loan.
What is the loan interest of the Development Bank of Nigeria?
The Development Bank of Nigeria offers flexible interest rates which are in charge and tied to market rates.
The Development Bank of Nigeria caters to a particular location. What determines DBN, besides commercial banks, is the long repayment period. For the latter, they are usually short-lived. However, one connection between them is that commercial banks, as well as other financial institutions, are responsible for overseeing and evaluating the PAN provided by IBN.