The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) on Wednesday 22 November 2023, entered into agreement with Sterling Bank Plc. for a ₦5 billion (Five Billion Naira) credit facility to provide soft loans to small businesses in Nigeria.
The loan facility offers a single-digit interest rate at 9%, making it one of the most appealing credit options for businesses that fall within Nigeria’s small and medium enterprises categories.
This opportunity is available nationwide to small businesses across all business sectors. Qualified businesses can obtain loans amounts ranging from ₦250,000 to ₦2,500,000. No collateral is required.
To access the loan, interested businesses must register with SMEDAN and complete an online application form; following which Sterling Bank will process qualified applications for immediate disbursement of the loans.
The loan repayment period is 24 months, and repayment commences after a minimum period of three months. This is to allow businesses to fully leverage on the benefits of the loan facility.
This financial initiative which comes at such a very competitive rate is expected to stimulate economic growth and drive prosperity by enhancing SME access to finance. It will also help Small and Medium Enterprises to expand operations, employ more people and contribute more towards increased level of economic and business activities in the country.
Application for the loan has commenced; and disbursement is expected to begin in two weeks.
Tap the LINK to begin: SMEDAN LOAN APPLICATION
SME stands for small and medium-sized enterprises. These are enterprises that have less than a specific level of assets investment and annual financial turnover. SMEs include both manufacturing and service businesses. The government categorizes them based on a combination of annual turnover and equipment investment (assets).
The Finance Act 2019 (FA 2019) says small companies are companies with annual gross turnover below ₦25 million. But the Companies and Allied Matters Act (CAMA 2020) defines a small business as a private company having an annual turnover of not more than ₦120 million; and a net asset value of ₦60 million.
For more information please visit the SMEDAN website: https://smedan.gov.ng/
To begin your loan application, tap the LINK: SMEDAN LOAN APPLICATION
According to the MD of Sterling Bank, Mr. Abubakar Suleiman, the aim of partnering with SMEDAN is to provide prompt access to finance for small businesses; as well as guide them through the formalization processes that are crucial for business sustainability and access to funds. Such processes include record-keeping, separation of personal finance from business finance, and investment in competitive strategies, that help businesses stand out and succeed.
Related: Business Loan Approval - What do Banks Want?
Related: How to Apply, Qualify and Get the Central Bank of Nigeria Small Business Loans
Related: Access to Easy and Affordable Loans for Small Businesses in Nigeria
Related: The Businessman's Guide to LOANS From The Bank of Industry - By an Insider!
Stay Smart, Wealthy and Wise!
© Jay Onwukwe
