How To Appy Development Bank Of Nigeria Loan – The Development Bank of Nigeria (DBN) is one of the banks where businesses and entrepreneurs can obtain business loans in Nigeria. The DBN is founded to alleviate financial situations faced by Micro, Small & Medium Scale Enterprises (MSMEs). They provide financing, partial credit guarantees and technical assistance to eligible financial intermediaries on a market-conforming and fully financially sustainable basis.

So, if you have been looking for where you can obtain loans in Nigeria, the Development Bank of Nigeria loans is there for you. We have decided to gather a comprehensive guide that will teach you how to obtain Development Bank of Nigeria loan. So, read on.

DBN Loan Eligibility

Before we show you the processes, here is the eligibility criteria before you apply.

1. All MSMEs (start up or existing) involved in productive enterprises are eligible for the loan. However, they must be customers of eligible financial institutions.

How Development Bank of Nigeria Loan works

Before you are given the loan, you must apply through an eligible financial institution. DBN is poised to provide funding and risk-sharing guarantees through Participating Financial Institutions (PFIs), who will then on-lend to end beneficiaries. Its 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.

Also see: 5 Practical Ways To Obtain Business Loans In Nigeria

How To Obtain Development Bank of Nigeria Loan

Here are the steps to follow.

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 favourable, 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.

DBN Participating Financial Institutions (PFIs)

Below are the banks that work in partnership with PFN

Also See: Top Best Mobile Loan Apps In Nigeria

DBN Collateral

The collateral requirement varies from one individuals to another. After the bank or institution through which you apply have listen to your pitch, based on that, they will decide the best collateral requirement. In some cases, they will ask to come conduct assessment of your business wherever it is located, this will have a say on collateral requirement. And the amount of money requested is likely to influence collateral requirement.

There is really no fixed collateral requirement, it is on case by case basis and likely at the discretion of the PFI based on their risk assessment.

Also See: Trader Moni Loan Scheme Application Guidelines And Requirements

DBN Loan Duration

The DBN have a very good timeline to pay back loans. You can pay back from 18 months. You can even take up to ten years to pay back. But there are some factors that will determine when you pay back. They include your nature of business and why you need the loan.

Do you have any question on how you can apply and get the Development Bank Of Nigeria Loan in Nigeria? Use the comment box below.