FG start the SMEDAN 1.5m Loan for Nigerians to help Small and Medium Enterprises by Giving them loans with low interest. FG is set to begin SMEDAN to boost the 2023 economy!
SMEDAN(Small and Medium Enterprises Development Agency of Nigeria) was first established in 2003.
They come up with 4 mandates:
- This time of low is low-interest or absolute no-interest loans to help the MSMEs gain easy access to funds
- Aim to Engage in Capital Building
- They are set to create and implementation of fair loan policies for MSMEs
- They are structures to monitor and coordinate all micro, small and medium-sized enterprises (MSMEs)
SMEDAN situate its head office in Abuja but have an office all around the states in the country.
They focus on helping the MSMEs in funding their business with loan facilities.
They have two main collaborations with the Bank Of Industry (BOI) and the Bank Of Agriculture (BOA) With the aim of helping the Nigeria economy
SMEDAN is the intermediary between MSMEs in the country and the loan providers meanwhile partnering with the Federal Government of Nigeria, Central Bank Of Nigeria, Bank Of Industry, and Bank Of Agriculture just to ease the loan funding and distribution to the appropriate parties
Qualification And Requirement For SMEDAN Loan
There are very few requirements for MSMEs in the country to collect loans. The main thing is the business must be registered and if not registered presently must have it in mind to register later while taking the loan.
MSMEs can also get the SMEDAN loan through commercial banks but will need some additional requirements according to the commercial banks which SMEDAN will make the announcement
Application procedure for the Small and Medium Enterprises Development Agency loan
All MSMEs can apply for the loan in two ways:
The first method is to apply for the loan on SMEDAN’s credit information portal and head over to the commercial bank to take the loan
The second method is to first attend SMEDAN’s training programs and after that, you will get access to the loan facility
Let’s give the procedure for the two!
Accessing the loan through SMEDAN’s training programs
The first thing to do here is to register to be part of SMDAN-sponsored initiatives then you will be trained on a particular business by the SMDAN team
To register for this you need to visit any of the MSME registration portals online but you will need to continue some registration in their office and you will need to be going for the training frequently
After the successful completion of the training then you have access to soft loans or conditional grants to boost your business.
The soft loan comes with no collateral and a low-interest loan
For the other side which is the grants! You will need to have a registered business or be encouraged to register your business with CAC
You will also need a business plan stating how you want to spend the money if given to you and some other things below
SMEDAN grants Requirements:
- You need your Business Registration Number ( BN OR RC) if any
- Valid means of Identification(ID card)
- Business plan( Strategy on how to use the loan)
- State in which the business operates ( You need to provide where your business is located)
- Your phone number and Proof Of Adress
- If any, you provide Details of collateral offered
- Type of business or business model( What the business is all about)
You check for more information on smedan.gov.ng
Applying for a SMEDAN loan through the Credit Information Portal
SMEDAN has a lot of commercial loans you can apply for through the credit information portal depending on the types of MSMEs and which is suitable for the business
SMEDAN portal gives detailed information about the lender and its loan… Information like the interest rate, repayment period, and if any collateral will be needed among others.
There are some other loans too on the portal apart from loans for businesses, loans like mortgage loans, personal loans, and credit cards
This platform successfully matches the lender with the borrower with the appropriate information you sub, it in the portal, and afterword you will still need to visit the financial institute you are taking the loan from
This portal is basically for the information you can easily access to get the appropriate loan but not an online loan application portal! If you want to get a direct loan from SMEDAN you can go through the first method!