Bank Of Industry Loan Requirements

Bank Of Industry Loan Requirements – If you are planning to apply for the bank of industry loan, there are many things you should consider before doing so. First, understand that you can apply online, over the phone or in person at the lender’s office. Once you submit your application and wait to hear back from the lender, you’ll also have to fill out more paperwork and answer additional questions regarding your credit report. Remember that it’s important to read all of the fine print when filling out any forms or providing any personal information and remember that everything you submit could be stored on your credit report in the future. To apply for BOI loan and get quick response see the requirements below.

Table of Contents

1. Who is eligible to access a Bank Of Industry Loan and what type of businesses does the bank finance?

The Bank Of Industry Loans can be accessed by an individual or a group (solidarity group or registered cooperative society). The bank finances a wide range of businesses in the under-listed sectors:

Manufacturing and processing
Agriculture and forestry
Service
Trading

The bank specifically encourages businesses involved in value-addition to apply.

Can a prospective borrower access a Bank Of Industry Loan without prior banking relationship?

A prior relationship is a must.

What are the account opening requirements?

Loans can be accessed by an individual or a group (solidarity group or registered cooperative society).

The bank finances a wide range of businesses in the under-listed sectors:

2 recent passport photographs
copy of a valid identity card (Driver’s license, National Identity card, International Passport and Voter’s Card)
Utility bill (paid within the preceding 3 months)
Initial deposit
Completed KYC form provided by the bank

4, What is the minimum account opening amount?

Minimum account opening balance is N3,000. In the instance were the customer submits an application for loan, the bank will conduct a search at the credit bureau at a cost of N2,000. This amount will be deducted from the N3,000 irrespective of whether the search is favourable or not or if the loan is approved or declined.

5. What is the minimum account balance?

Minimum account balance is N500

6. What is the maximum loan I can access?

The amount of loan a prospective borrower can access depends on an assessment of capacity to repay and the adequacy of the collateral pledged.

7. As a prospective borrower what loan requirements must I fulfil?

A loan shall be approved for a prospective borrower if he/she can demonstrate that there is sufficient capacity to repay the loan in line with the approved loan conditions. The prospective borrower will be required to provide the following:

Valid means of identification
2 recent passport photographs
Statement of account for a minimum of 6 months and pay slips covering an equivalent period for salary earning borrowers
Utility bill (within the preceding 3 months)
Signed post-dated cheques

8. Do I need to provide a Guarantor?

Yes. The borrower may also require more than one guarantor depending on the loan size and other loan considerations.

9. What are the Guarantor requirements?

What are the Guarantor requirements?
The guarantor must provide the following:

Valid means of identification
2 recent passport photographs
Statement of account for a minimum of 6 months and pay slips covering an equivalent period for salary earning guarantors
Utility bill (within the preceding 3 months)
Signed post-dated cheques

10. How long does it take to obtain a loan?

Once all loan requirements have been fulfilled by the prospective borrower, the bank will normally disburse the loan within 7 working days.

11. If my loan request is granted, where would I make the loan repayments?

Loan repayments can be paid at the bank or at any of the bank’s correspondence banks nearest to you.

12. If I have a loan with another financial institution, can the bank approve a loan for me?

The bank can approve a loan even if you have a loan with another financial institution insofar as you have indicated this clearly in the application form.

13. Does the bank insist on savings alongside loan repayment?

Yes, the bank’s loan repayment plan includes an on-going savings of 20% of the approved loan over the tenor of the loan. For example, if the bank approves a loan of N100, 000 with a tenor of 12 months, the borrower in addition to the monthly loan payment will remit the sum of N8, 333.33 as compulsory savings.

14. When will the compulsory savings become available to be borrower?

On completion of the loan repayment, the full compulsory savings can be withdrawn by the borrower.

15. Does the bank finance Contracts and Local Purchase Orders?

No.

16. Can I use my car as collateral for a loan? Would I have to park it at the bank’s premises?

No. The Relationship Officer will however need to inspect the vehicle at the bank’s premises and the original vehicle documents will also be made available to the bank.

For more information please click to Bank of Industry webpage