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How to obtain loan from the Development Bank of Nigeria

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Over 37 million MSMEs operate in Nigeria, accounting for more than half of the country’s GDP. However, only around 5% of these firms have access to sufficient financing in the banking system.

MSMEs are the major employers in many low-income countries, including Nigeria, but their survival is jeopardized by a lack of risk-management instruments including savings, insurance, and loans.

Their expansion is frequently hampered by limited access to finance, equity, and payment services.

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Who is eligible for a DBN loan?
A loan from the Development Bank of Nigeria is available to any MSMEs (new or existing) engaged in productive enterprises. DBN plans to give cash and risk-sharing guarantees to Participating Financial Institutions (PFIs), who would subsequently lend to end beneficiaries.

In order to qualify for these loans, the company must be a customer of one of Nigeria’s approved Participating Financial Institutions (PFIs). Major Commercial Banks, Microfinance Banks, Development Finance Institutions (DFIs), and other Financial Institutions are included in the PFIs.

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How to Obtain a Loan from the Development Bank of Nigeria (DBN)

Go to your bank and tell them you wish to apply for a DBN Loan: Commercial Bank, Microfinance Bank, Development Finance Institution (DFI), and other Financial Institutions.
The Bank evaluates the business and loan purpose, and if its judgment is favourable, it submits a financing request to DBN.

DBN will disburse to the Bank for on-lending to end borrowers if the loan is approved by DBN.

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Development Bank of Nigeria Interest Rate

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

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.

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