Sterling Bank, in partnership with the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), has launched a N5 billion loan program designed to drive business growth.
This program offers a single-digit interest rate facility to provide crucial financial support to both new and expanding small and medium enterprises (SMEs) in Nigeria.
Partnership and Objectives
Sterling Bank and SMEDAN have collaborated to create a comprehensive database of SMEs. This database enables the provision of tailored financial solutions and intervention programs.
The partnership aims to enhance Nigeria’s economic development by fostering job creation and economic growth.
Loan Details and Benefits
The SMEDAN N5 billion loan program offers several key benefits to SMEs:
- Affordable Interest Rates: The loans are provided at single-digit interest rates, making them a cost-effective financing option.
- Flexible Repayment Terms: Repayment plans are designed to meet the specific needs of businesses, ensuring manageable instalments.
- Streamlined Application Process: The application process is fully digital and collateral-free, simplifying traditional loan application complexities.
- Expert Guidance and Support: Borrowers can access expert advice and support from Sterling Bank’s SME specialists.
Eligibility Criteria
To qualify for the SMEDAN/Sterling loan, businesses must meet the following criteria:
- Registered Business: The business must be registered with the Corporate Affairs Commission (CAC).
- Operational History: The business must have been in operation for at least 18 months.
- Clean Credit Record: The applicant must have a clean credit record.
Certain business types are excluded from this loan program, including specialized businesses such as haulage companies, petrol stations, healthcare facilities, schools, and firearms/armoury businesses.
How To Apply
Applying for the SMEDAN/Sterling loan involves a straightforward two-step process:
- Register on the SME Databanc Platform: Applicants must first sign up on the SME Databanc platform powered by SMEDAN to generate a Promoter ID and Business ID.
- Apply via the Banca by Sterling App: After obtaining the necessary IDs, applicants need to download the Banca by Sterling mobile app from Google Play or the App Store, sign up, and complete the loan application.
It is important for businesses to be registered with the CAC and have a valid Tax Identification Number (TIN) before applying.
Support for Non-Qualifying Businesses
For businesses that do not initially qualify, Sterling Bank and SMEDAN provide clear feedback and guidance on how to improve their business to become eligible for future funding.
This approach ensures that the loan program goes beyond financial assistance, facilitating growth and development among SMEs.
Launch Event Highlights
The launch event, held in Lagos with the theme “Building with Data: Promoting Economic Growth through Data-Driven Insights,” emphasized the importance of data in driving business growth.
Key stakeholders highlighted how SMEDAN and Sterling Bank plan to leverage data to provide local and tailored support for SMEs, enhancing their export potential and sustainability.
To apply for the SME loan, visit the website for more information.