How to Access DBN Business Loan for MSMEs (Complete Guide)

Filed in Loan by on November 5, 2020 0 Comments

This guide on How to Access DBN Business Loan explains in detail the major objective of the loan programme, how you can benefit, and requirements to access loans, and all other important information you may need to know. Please, stay tuned.

DBN Business Loan

The Development Bank of Nigeria (DBN) was established by the Federal Government of Nigeria (FGN) in collaboration with global development partners to address the major financing challenges facing Micro, Small and Medium Scale Enterprises (MSMEs) in Nigeria.

Its main objective is to alleviate financing constraints faced by MSMEs and small Corporates in Nigeria through the provision of financing and partial credit guarantees to eligible financial intermediaries on a market-conforming and fully financially sustainable basis.

Beneficiaries

All MSMEs (startups or existing) involved in productive enterprises are eligible to get a loan from the Development Bank of Nigeria. DBN is poised to provide funding and risk-sharing guarantees through Participating Financial Institutions (PFIs), who will then on-lend to end beneficiaries.

RELATED: How to Get Approved for NIRSAL CBN AGSMEIS Loan for SMEs and AGRIC-Businesses

In other to access these loans, it is required that the business must be a customer of any of the eligible Participating Financial Institutions (PFIs) in Nigeria.  The PFIs includes major Commercial Banks, Microfinance Banks, Development Finance Institutions (DFIs) and other Financial Institutions.

How to Access DBN Business Loan?

  • Visit your bank: Commercial Bank, Microfinance Bank, Development Finance Institution (DFI) and other Financial Institutions and indicate you want to apply for a DBN Loan.
  • The Bank appraises the business and loan purpose, and if its assessment is favourable, the Bank applies to DBN for funding.
  • If DBN approves the loan, DBN will disburse to the Bank for on-lending to end borrowers.

DBN Business Loan Frequently Asked Questions

Here are answers to frequently asked questions that might help you.

Can businesses borrow directly from DBN?

No, Development Bank of Nigeria (DBN) does not lend directly to businesses. DBN loan is channelled through PFIs. PFIs carry out the credit evaluation and supervision of the loan.

How many years do I have to pay back the loan?

Depending on the nature of your business and loan purpose, you may have up to 18 months moratorium on principal repayment for working capital & investment projects, and up to 10 years to repay the loan.

What is the interest rate?

DBN loan offers flexible interest rates that are based on tenure and referenced to market rates.

How does DBN loan differ from other commercial loans?

DBN loan is specifically targeted at small businesses to ensure that such businesses have increased access to financing. In addition, DBN loans have a longer tenure than other commercial loans, which are usually short-term.

Do you have any queries on DBN Business Loan application? Please feel free to let us know so we can assist you with any information you will need on the Development Bank of Nigeria Loan.

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