The industrial and economic growth of any nation can only be achieved with a private sector-driven economy and infact, the Small and Medium-sized Enterprises (SMEs). Nigeria as a country is not an exception. To drive this, government must create an enabling ground (ease of doing business) for SMEs to thrive. It has been established that, high lending rate and stringent secured loans/credit facilities constitute a major obstacle of SMEs in Nigeria.
Small and Medium-sized Enterprises are drivers that factor sustainable growth and development as seen in other advanced economies of the world such as China, USA, Japan, etc.
According to a survey conducted by PWC, SMEs contribute 48% of the national GDP, account for 96% of Nigerian businesses and create 84% of employment in Nigeria. Since SMEs drive the economic growth, industrial transformation and export growth of the nation, it is safe to conclude that they form the backbone of Nigeria’s economy.
However, SMEs like any other sector of Nigerian economy suffers some challenges, most crucial is the issue of secured loans. Secured loans/loans with callateral are primarily, meant to save lending institutions or financiers the risk of losing their credit facilities to defaulting customers.
In as much as this is tenable, the fact still remains that most of these SMEs do not have the prerequisite requirement, or better still, can’t meet the condition of a collateral in view of how much they would need from the bank. As a result, their businesses suffer speedy growth and expansion.
It is recommended that the federal government of Nigeria through the Apex bank (CBN) formulate and regulate a lending policy that would allow SMEs unsecured loans from the commercial banks with low interest rate, reasonable grace period, tax holidays, long period of repayment in the year, 2022.
1. Sterling Specta: Specta loan is a collateral free credit facility designed for both individuals and SMEs to help Finance quick needs or improve on an existing business.
Specta is an innovation of one of Nigeria’s financial giant STERLING BANK. It is a DIY application, meaning “Do it Yourself”. Customers must not visit the bank to obtain this loan facility. APPLY HERE
2. BOI Loan: The Bank of Industry (BOI) has always been ready to support Small and Medium Enterprises firms in Nigeria. This is it’s core mandate. BOI has over the years helped SMEs by supplying the needed equipments for expansion as it has clearly stated that the Bank does not issue loans in cash. BOI can only purchase the equipments you need to start or expand your business. It’s mandate on the portal says;
“Providing financial assistance for the establishment of large, medium and small projects as well as the expansion, diversification and modernisation of existing enterprises; and rehabilitation of existing ones.”
To obtain this Loan visit any Bank of Industry’s branch near you or following this link. APPLY HERE
3. GTB’s Quick Credit: The impact of Guaranty Trust Bank on the Nigerian economy can never be undermined. The bank has supported many households and MSMEs and SMEs to achieve reasonable growth even in the face of the pandemic (COVID-19). Note that obtaining an SME loan with a Corporate Affairs Commission’s certificate that is yet to be a year old may not be accepted.
“This is a time loan product aimed at financing the working capital (i.e funds needed for day to day needs) of SMEs in the Education (creche, primary & secondary schools) and Healthcare (Hospitals, Retail Pharmacies and Diagnostic Centres).”
