Step By Step Guide On How to Get a DBN Loan in Nigeria Fast
Before you plan of getting a loan from any organization, you need to ask yourself some necessary questions and also sit back to think about it carefully.
Getting a loan is quite easy but can you afford to pay it back within the specified period? Well, it isn’t what you think but if you have a clear understanding of the organization and its criteria definitely everything will just be smooth and easy for you. In this article, you will be given details about the Development Bank of Nigeria (DBN), How to Get a Loan from Them, and Also Who is Eligible to Get a Development Bank of Nigeria (DBN) Loan.
First, you need to know about the organization and who they are.
About Development Bank of Nigeria (DBN)
Development Bank of Nigeria exists to alleviate financing constraints faced by Micro, Small, and Medium Scale Enterprises (MSMEs) in Nigeria by providing financing, partial credit guarantees, and technical assistance to eligible financial intermediaries on a market-conforming and fully financially sustainable basis.
With the above explanation about the Development Bank of Nigeria which is clearly stated, you can now have a choice depending on what you need. But, come to think of it, who can be qualified for the Development Bank of Nigeria (DBN) loan?
Who Qualifies For The DBN Loan?
- All MSMEs (start-ups or existing) involved in productive enterprises are eligible for the loan. However, they must be customers of eligible financial institutions.
- DBN is poised to provide funding and risk-sharing guarantees through Participating Financial Institutions (PFIs), which will then on-lend to end beneficiaries.
- DBN loans can be accessed through PFIs, which include Commercial Banks, Microfinance Banks, Development Finance Institutions (DFIs), and other Financial Institutions.
- DBN loan repayment tenure is flexible (up to 10 years with a moratorium period of up to 18 months) and the interest rates are on a market-conforming and fully financially sustainable basis.
After knowing who qualifies for the DBN loan, won’t you like to know the requirements? I believe you would love to. Don’t be afraid about the requirements because you will surely meet up with it.
Eligibility Criteria For Getting An DBN Loan
To be eligible to receive financing from DBN, the PFI shall have met the minimum eligibility requirements set out below on the Cut-Off Date. The PFI shall maintain the minimum eligibility requirements throughout the Financing Period.
DBN or its representative will conduct an annual due diligence process to confirm that the PFI is not in breach of the minimum eligibility requirements and may declare all advances to the PFI immediately payable if the PFI is in breach of one or more of the requirements or fails to remedy the breach of a requirement within any grace period allowed by DBN at DBN’s absolute discretion.
To be eligible to receive financing from DBN, the PFI shall:
- Hold a duly issued and valid license from CBN to carry on business as a bank or finance company;
- Demonstrate within the three most recent financial years, two years of profitable lending operations, with effective risk management procedures, controls, and acceptable levels of loan portfolio quality and performance;
To read more about our Eligibility Criteria please CLICK HERE
To complete our Eligibility Criteria Questionnaire (ECQ), kindly CLICK HERE
As you are reading through the article carefully, I know you have some questions in mind to ask concerning this DBN Loan. All of your questions will be answered appropriately. That’s why we have decided to bring up frequently asked questions (FAQs) about DBN Loan.
FAQs About DBN Loan
Can I Borrow Directly From DBN?
No, the Development Bank of Nigeria (DBN) does not lend directly to businesses. DBN loan is channeled 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.
What Is The Definition Of An MSME?
MSMEs are classified into Micro, Small, and Medium-Sized Businesses based on asset size, sales volume, and number of employees, as defined by The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN).
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.
Can I Open A Current/Savings Account At DBN?
No, DBN is a wholesale Financial Institution and does not provide retail banking services.
Can I File A Complaint With DBN Regarding A Participating Financial Institution?
For any inquiry, complaint, or suggestion, you may contact us directly through the following channels:
E-mail: info@devbankng.com
Call: +234 811 384 1699
I believe we’ve been able to answer some of your questions. Cheers!!!
If you have any other questions to ask, you can drop a comment.
Now, that you have had a clear understanding of DBN Loan, what next to do, you think is lacking behind? I know you are smiling and saying to yourself, it’s the application process that is how to get a DBN Loan.
How To Get A DBN Loan
1. 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.
2. The Bank appraises the business and loan purpose, and if its assessment is favorable, the Bank applies to DBN for funding.
3. If DBN approves the loan, DBN will disburse to the Bank for on-lending to end borrowers.
You can access the DBN loan through any of these PFIs by contacting any of the banks listed below:
| Access Bank Plc | Onyinyechi.Uba@ACCESSBANKPLC.com, CorporateFinance@ACCESSBANKPLC.com, Oreoluwa.Adeyemo@ACCESSBANKPLC.com, Omotolani.Ketiku@ACCESSBANKPLC.com, Moses.Osondu@ACCESSBANKPLC.com |
| Ecobank Nigeria Bank Plc | LAWAL Theresa – TOLAWAL@ecobank.com, TOLARINDE@ecobank.com, AODJEGBA@ecobank.com |
| Fidelity Bank Plc | Osaigbovo Omorogbe – osaigbovo.omorogbe@fidelitybank.ng, Jennifer.David-Ake@fidelitybank.ng, Chiwuike.Okere@fidelitybank.ng |
| FCMB Ltd | Oluremi Agboola – Oluremi.Agboola@fcmb.com, George.Ogbonnaya@fcmb.com, Toyin.Ajibulu@fcmb.com |
| First Bank Nig Ltd | DBNFUNDS@FIRSTBANKNIGERIA.COM |
| GTBank | gbeminiyi.onipede@gtbank.com, lucia.jaiyeola@gtbank.com, kelvin.biiranee@gtbank.com |
| Stanbic IBTC Bank Plc | David.Adebayo@stanbicibtc.com, Ayodele.Ojosipe@stanbicibtc.com |
| Sterling Bank Plc | Fatai.Jelili@Sterlingbankng.com, Ezinne.Nwokafor@Sterlingbankng.com |
| UBA Plc | Adegoke Bayo – bayo.adegoke@ubagroup.com, anuoluwapo.ajayi@ubagroup.com |
| Union Bank of Nig Plc | aoordia@unionbankng.com, aebassey@unionbankng.com, retaillending@unionbankng.com |
| Wema Bank Plc | Ololade.Adekunle@wemabank.com, Arthur.Nkemeh@wemabank.com |
| AB Microfinance Bank Nigeria Ltd | Oladapo.Ikupolati@ab-mfbnigeria.com, Olukorede.Ekundebe@ab-mfbnigeria.com |
| Addosser Microfinance Bank | Olusola Howells – howells.olusola@addosser.com, deji.sobulo@addosser.com, oluwaseun.adekanbi@addosser.com |
| Baobab Microfinance Bank | Achenyo Oyibo – aoyibo@baobab.bz, cgwehi@baobab.bz |
| Bosak Microfinance Bank | Toyin Peters – toyinpeters@bosakmfb.com, teepeeters@gmail.com, FrancisAtiri@bosakmfb.com |
| HASAL Microfinance Bank | ruskiyat@hasalmfb.com, rogers.nwoke@hasalmfb.com |
| Infinity Microfinance Bank Ltd | Oludotun Adewunmi – g.adewunmi@infinitymfb.com, oludotunadewunmi@yahoo.com, s.ogunniyi@infinitymfb.com |
| LAPO Microfinance Bank Ltd | Efosa Aigbe – efosa.aigbe@lapo-nigeria.org, stanley.oriakhi@lapo-nigeria.org |
| Mainstreet Microfinance Bank Ltd | Adegoke E. Adegbami – aadegbami@mainstreetmfb.com, midris@mainstreetmfb.com, midris@mainstreetbankmfb.com |
| Microcred Microfinance Bank Ltd | Omar Niaz – oniaz@microcred.com |
| NPF Microfinance Bank Plc | Jude Ohanehi – jeco0072000@yahoo.co.uk, JOHANEHI@npfmicrofinancebank.com, cwosu@npfmicrofinancebank.com, rdada@npfmicrofinancebank.com, rotoyin1159@gmail.com, chima_wosu@yahoo.com |
| Parallex Microfinance Bank | abimbola.akande@parallexbank.com, femi.otenigbagbe@parallexbank.com |
| Seedvest Microfinance Bank | Kehinde Oyeleke – kehinde.oyeleke@seedvestgroup.com, oyelek@yahoo.com, omololaakinjoko1@gmail.com, jannybee1@live.com |
| Accion Microfinance Bank Limited | tjoda@accionmfb.com, conyekwere@accionmfb.com, ooladoyin@accionmfb.com |
| La Fayette Microfinance Bank Limited | eodetayo@advans-lfmfb.com |
| Davodani Microfinance Bank | johne.ologe@davodanimfb.com, aayotomi@davodanimfb.com, ayodejitomi@yahoo.com, soyebisi@davodanimfb.com, ufelix@davodanimfb.com |
| Trust Microfinance Bank | trustmfb@yahoo.com, debanjajayi@gmail.com, Sodiyasamusideen@yahoo.com |
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