FG Starts SMEDAN 1.5m Loan – Apply Now

FG Starts SMEDAN 1.5m Loan – Apply Now! – Registration window is open for this program. Application is FREE! and Online.

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SMEDAN is a body that was established by the government of Nigeria in 2003. The sole aim at this time is to help with the development of MSMEs within the country. SMEDAN stands for Small and Medium Enterprises Development Agency of Nigeria.

Upon establishment, SMEDAN had several objectives that hold to date. They include:

  • Monitor, stimulate, and coordinate MSME development in Nigeria.
  • Initiate policy ideas and articulate them to ensure the proper development of MSMEs within the country.
  • Facilitate and promote different development programs, instruments, and support services. All of these are aimed at accelerating the development and modernization of MSMEs in Nigeria.

FG Begins SMEDAN ₦1.5m Loan – Apply

The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) and Jaiz Bank Plc financing initiative has begun with the goal of increasing the capacity of micro and small enterprises (MSEs) across the country.

According to a statement issued by the Agency’s Corporate Affairs Division in Abuja, the Director General and Chief Executive Officer of SMEDAN, Dr. Dikko Umaru Radda, the two institutions are determined to see this project succeed in the interest of Nigerian MSEs.

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He stated that the Matching Fund initiative, which opened its doors to the public on February 22nd, 2022, is a promotional intervention designed to provide credit to the agri-business sub-sector in order to increase enterprise output, competitiveness, and job creation.

He also stated that the program’s disbursing entity will be Jaiz Bank Plc, the Agency’s most recent partner on the initiative.

SMEDAN also stated that the target beneficiaries will be labor-intensive micro or small enterprises (MSEs) producing value-added products, as well as operators in primary agriculture and warehousing.

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As a result, he invited all suitably qualified MSEs in Katsina, Kogi, Bauchi, Adamawa and other states across the country to apply for the program during the current window.

Radda also stated that prospective beneficiaries, who must be registered with SMEDAN, may apply for financing within the range of N1.2 million to N5 million, noting that the financing is on business-friendly terms.

Eligibility Criteria for a Small and Medium Enterprises Development Agency loan

All MSMEs are eligible to get a loan, via one of SMEDAN’s many initiatives. Usually, the main requirement is that you have a registered business. Nonetheless, unregistered businesses can still apply — getting registered at a later stage.

If applying for a loan from a commercial bank, in addition to needing to be a registered business, the bank will have its own lending criteria. SMEDAN can help make you aware, of the main lending requirements — of most commercial banks.

How to apply for a Small and Medium Enterprises Development Agency loan

There are two ways to apply for a loan through SMEDAN.
Firstly, you can apply to one of SMEDAN’s training programs. Secondly, you can use SMEDAN’s credit information portal — before going on to directly apply for a commercial bank loan.

Applying Through SMEDAN

In order to get a loan, you can apply or register to be part of one of several SMEDAN sponsored initiatives. These programs typically involve, you being trained on one or more aspects of business.

Registration can involve visiting a SMEDAN office near you. There you would complete an application form, and may subsequently be invited to a course or training program. SMEDAN also has a new MSME registration portal, where you can register online.

Upon satisfactory completion of a course — some programs involve you either getting a conditional grant, to start or expand your business, or you being given a soft loan. These soft loans normally come with lower interest rates attached, and will often require no collateral.

Regardless of if you are given a grant or loan — you would usually be required to either already have a registered business, or be encouraged to register (as part of the program). The Corporate Affairs Commission (CAC), is in charge of registering businesses in Nigeria.

Depending on the type of business you have, you may also need to register with the Standards Organization of Nigeria (SON) and the National Agency for Food and Drug Administration and Control (NAFDAC).

A business plan would also need to be produced — detailing how and what you will use the money for.

Using SMEDAN’s Credit Information Portal — before applying to a commercial bank

SMEDAN has a Credit Information Portal — that can be useful for those wanting to apply for a commercial bank loan. Essentially, this portal is a database of credit facilities — that are potentially available to MSMEs in Nigeria.

On this portal, you can find basic information about lenders, how much you can borrow, loan repayment periods and interest rates. As well as a business loan, there are 3 other credit options — personal loans, mortgage loans and credit cards.

The portal has a search function, where you are matched to appropriate lenders — based on the details you provide. However, with this online platform, you cannot instantly apply to a lender. Instead, you will need to apply directly — with the financial institution in question.

Think of the SMEDAN credit portal, as more of a credit information resource — rather than a means of applying for a loan.

SMEDAN Loan Application Checklist

A checklist of what is required, before a loan through SMEDAN (or a commercial bank) is approved — could include:

  • Completed application form
  • Business plan
  • Cash flow budget
  • Certificate of Incorporation
  • Valid means of identification (driving license, passport, voters card)
  • Proof of address
  • Details of collateral offered (if any)

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