FG Begins SMEDAN 1.5m Loan to help Small and Medium Enterprises, Giving loans with low or no interest at all and this was established in 2003.
Let me quickly show you how to access the 2022/2023 SMEDAN Federal Government loan.
SMEDAN stands for Small and Medium Enterprises Development Agency of Nigeria which have the mandate to :
- Engage in Capital Building
- Aim to help the MSMEs gain access to Funding and absolute low-interest or no-interest loan
- Creation and implementation of favourable policies for MSMEs
- And also to monitor and coordinate the micro, small and medium-sized enterprises (MSMEs)
SMEDAN is committed to helping the developing MSME sector have its headquarters in Abuja and other offices around the country in collaboration with the Bank of Industry (BOI) and Bank of Agriculture (BOA)
How SMEDAN Get The Funding
SMEDAN act as the middleman between the eligible MSMEs and loan providers and they basically partner with the Federal Government agencies like BOI and the Central Bank of Nigeria (CBN)
Partnering with both public and private sectors to always have enough loans on grand to offer the MSMEs. some private sectors like commercial banks, finance houses and microfinance banks
How To Qualify For SMEDAN Loan
It is very easy to qualify for the SMEDAN Loan, all MSMEs are eligible for the loan but have to have their business registered but still, unregistered businesses can still apply but need to register their business at a later stage
But apply through commercial banks, they mind needing additional requirements which SMEDAN will make known to all MSMEs
How to apply for the Small and Medium Enterprises Development Agency loan
It is basically two-way:
Either you apply through the SMEDAN’s credit information portal first then go to the commercial bank to take the loan
Secondly, you can just apply for SMEDAN’s training programs and through that, you will have access to get loans.
Applying through the SMEDAN’s Credit Information Portal
Basically, SMEDAN has a credit Information Portal for those that want to apply for commercial bank loans. SMEDAN has lots of commercial banks loans that are suitable for MSMEs
On the SMEDAN portal, you can easily find a lot of information like information about the lenders, how much you can apply, the repayment period, and the interest rate.
You can also find some other loans aside from business loans like personal loans, mortgage loan and credit cards
This platform easily matches lenders to the appropriate details you provided but still, after the matching you will need to visit the financial institution in question
The portal is basically a resource for you to get loan rather than directly applying online.
But the other way that can be easier is through SMEDAN
Applying through the SMDAN
To get a loan through SMDAN you will first need to register to be part of the SMDAN-sponsored initiatives. Also, you will be trained in one or various businesses.
Registering may involve you visiting one of their offices, you get a complete form and also going for a course or training program subsequently. They also provide an MSME registration portal where you can register online.
Upon completion of the courses and programs, you will either be given a soft loan or conditional grants to expand your business. That soft loan always comes with low interest and no collateral
On getting a grant or loan you will need to register your business or will be encouraged to register your business to the CAC if you have not
A business plan of how you want to use the money will also need to be produced
Loan Application Requirments
- Valid means of Identification
- Proof Of Adress
- Details of collateral offered (if any)
- Your Business Registration Number ( RC or BN) if gotten
- State in which the business operates
- Type of business or business model
- Your phone number
- Business plan