SMEDAN, Sterling Bank To Provide Loans For Small Businesses
By Ted Iwere
The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) and Sterling Bank have signed an agreement to provide a total of ₦5bn in loans to small businesses across Nigeria.
The loan facility offers a low-interest rate of 9%, making it an attractive credit option for Nigeria’s NSMEs.
This initiative marks a significant stride in fulfilling the agency’s commitment to fostering prosperity by facilitating the growth of small businesses through enhanced financial access.
At the signing event, DG Charles Odii described the loan agreement with Sterling Bank as a significant milestone in enhancing SME access to finance and driving economic growth and prosperity. The financial support provided at a competitive rate will enable SMEs to expand operations, hire more employees, and contribute to an overall increase in beneficial trade and economic activities.
The duration of the loan agreement is 24 months, with repayment commencing after a minimum of three months. This feature allows small businesses to fully leverage the facility.
Meanwhile, the MD of Sterling Bank, Mr. Abubakar Suleiman, emphasized that the partnership with SMEDAN aims to provide prompt access to finance for small businesses and guide them through a formalization process crucial for sustainability and access to funds. This process includes record-keeping, separation of personal and business finances, and investment in competitive strategies to stand out and succeed.
How To Access The Loan
To access the loan, small businesses must register with SMEDAN and complete an application form by logging on to this site, following which the bank will process the application for disbursement.
This opportunity is available nationwide to small businesses across all sectors, with loan options ranging from ₦250,000 to ₦2,500,000.
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