Features

• This is a bank credit facility that offers loan repayment periods of more than 12 months. The preferable maximum period should be 5 years
• For financing capital investments
• May entail a few months grace period on principal repayment for up to 12 months, depending on the nature of the project. However, interest is payable during the grace period
• The borrower must have the capacity to provide their own funds up to a level of not less than 25% of the total investment
• Interest rates for corporate lending are negotiable and competitive
• Maximum period including grace period should not exceed 5 years
• Maximum lending is as per prevailing Central Bank Prudential Guidelines

To calculate your repayment plan use our Loan Calculator.

Benefits

• Lump sum payments to finance Capex with affordable repayments to match business cash flows
• Enables companies/institutions to engage in business expansion
• Enables companies/institutions to finance their fixed assets without much constraint
• Reasonable interest rates, hence cost effective
• Promotes business and economic development in general with extended positive externalities, hence National development
• Gives room for manufacturing industries to produce quality products by employing quality production machines.
• Can be for purchases and constuction of buildings for commercial and industrial purposes, machinery, furniture and other assets

Eligibility - General requirements

• Application letter
• Financial Statement projections for the entire facility period (including cash flow projections) 
• Business plan 
• Memorandum and Articles of Association
• Certificate of registration/Certificate of incorporation 
• Audited financial statements for the last three years and management accounts up to date of application
• Business License, TIN Certificate
• Board Resolution to Borrow 
• Recent filed returns with Register of Companies (for companies)
• Tax Clearance Certificate 
• Proposed security for the facility
• Valuation report of the proposed security
• Business must prove to be financially viable with sound business turnover

Additional Documents for Public Corporations and Government Agencies:

• Must provide Government assent to engage in the borrowing 
• Must provide Government Guarantee
• All Requirements are the same as that explained under Corporate Overdraft except for the  following additions:
  - The customer should provide Financial Statement projections for the business covering the entire loan repayment period