A lot of businessmen or women, or entrepreneurs, are usually scared of getting loans in Nigeria for several reasons. One of these reasons is that getting loans is difficult and expensive. In this post, we’ll be examining the 5 cheapest places to get loan in Nigeria.
You can get loans from these places at low-cost and low rate, although with some level of difficulties. However, you assured that once you get these loans, repaying them won’t be an issue because the rates are cheap and the repayment plan and time is long.
Therefore, if you’re an entrepreneur in Nigeria thinking of expanding your business in the country, we’re going to present or state the 5 cheapest places to get loan in Nigeria.
5 Cheapest Places to Get Loan in Nigeria
1. Bank of Industry (BOI)
Bank of Industry is the cheapest place to get a loan for your business in Nigeria. The rate of this bank is very cheap, and the repayment plan is long and flexible. The interest rate is as low as 4% annually. It is a good option you should consider.
However, you’ll need to pass through a rigorous process of presenting what you need the loan for, and pass the screening. This Bank of Industry is a Federal Government Bank of Industry supporting businesses and business growth.
2. Bank of Agriculture (BOA)
Bank of Agriculture belongs to the Nigerian Federal Government and acts almost similar functions as that BOI. While BOI focuses on giving loans to all forms of industries, Bank of Agriculture focuses on giving loans to businesses in the agro-allied industries. These loans have low interest rates and long repayment plan.
The loan application of this bank has a rigorous process, though. You’ll have to scale through before you are considered viable for the loan or before you secure the loan.
3. Development Bank of Nigeria (DBN)
This bank is a bank belonging to the Government. They give out cheap rate loans to businesses with good and profitable plans and ideas. You’ll have to possess a great business with great business idea before you get this loan.
4. Nigerian Export-Import Bank (NEXIM)
NEXIM reviews enormous business ideas and businesses before handing loans to them. They give loans t large scale businesses. This bank is also controlled by the Government. This is just like other banks mentioned here, you’ll have go through a rigorous process to secure loan from here.
5. Small and Medium Enterprises Development Agency of Nigeria (SMEDAN)
This is more of an agency than a bank. They oversee the growth and prosperity of small and medium business enterprises. Thus, they always seek out ways to assist such businesses to grow. They can do this by giving out loans and grants. If your business is a small or medium enterprise, you can apply and follow through the rigorous process to secure low-interest loans.
This is it on the 5 cheapest places to get loan in Nigeria. This post will guide you well on how to get these cheap loans and boost your business.