How to obtain loan from the Development Bank of Nigeria

Over 37 million MSMEs operate in Nigeria, accounting for more than half of the country’s GDP. However, only around 5% of these firms have access to sufficient financing in the banking system.

MSMEs are the major employers in many low-income countries, including Nigeria, but their survival is jeopardized by a lack of risk-management instruments including savings, insurance, and loans. Their expansion is frequently hampered by limited access to finance, equity, and payment services.

Who is eligible for a DBN loan?
A loan from the Development Bank of Nigeria is available to any MSMEs (new or existing) engaged in productive enterprises. DBN plans to give cash and risk-sharing guarantees to Participating Financial Institutions (PFIs), who would subsequently lend to end beneficiaries.

In order to qualify for these loans, the company must be a customer of one of Nigeria’s approved Participating Financial Institutions (PFIs). Major Commercial Banks, Microfinance Banks, Development Finance Institutions (DFIs), and other Financial Institutions are included in the PFIs.

How to Obtain a Loan from the Development Bank of Nigeria (DBN)

Go to your bank and tell them you wish to apply for a DBN Loan: Commercial Bank, Microfinance Bank, Development Finance Institution (DFI), and other Financial Institutions.
The Bank evaluates the business and loan purpose, and if its judgment is favourable, it submits a financing request to DBN.

DBN will disburse to the Bank for on-lending to end borrowers if the loan is approved by DBN.

Development Bank of Nigeria Interest Rate

DBN loan offers flexible interest rates that are based on tenure and referenced to market rates.

How many years do I have to pay back the loan?

Depending on the nature of your business and loan purpose, you may have up to 18 months moratorium on principal repayment for working capital & investment projects, and up to 10 years to repay the loan.