The Edo State MSME Fund is an initiative of His Excellency Governor Godwin Obaseki. The Fund is managed by the Edo State Skills Development Agency in partnership with the Bank of Industry to provide financial and other business support services to qualified entrepreneurs involved in Micro, Small and Medium Enterprise [MSME] businesses located in Edo State.
Features of the Fund
Obligor Limit
Microcredits: From N1million to N10million
SMEs: From N10 million to N20 million
Note: Consideration may however be made, based on merit and at the discretion of BOI in collaboration with its Development partner, for projects which do not fall under the agreed limits.
Funding Type
Term Loan (TL): For the procurement of machineries, equipment and fittings
Working Capital (WC): For the procurement of raw materials and inputs.
Interest Rate
Term Loan: 5% per annum
Working Capital: 6% per annum
Appraisal fee: 1%
Administrative Fee: 4% (one-off; could be capitalized)
Commitment fee: 0.5% (only applicable to loans from N10m and above)
Target Beneficiaries: MSMEs in the following Sectors
Manufacturing and Processing.
ICT, Digital Marketing and E-commerce.
Transportation
Creative Industry and Entertainment.
Agribusiness and its value chain.
Healthcare and Fitness.
Education.
Renewable Energy.
Eateries and Cafeterias
Cold chain business (cold-room and ice block production) and other Real sector support services.
Distributors of made in Nigeria products.
Arts and Crafts
Solid Minerals Processing.
Recommended Loan Application Vehicles:
Microcredits: Enterprises
SMEs: Limited Liability Companies
Security Arrangement:
Microcredit Loan (from N1 million to N10 million)
Provide 2 credible Guarantors
10% Security deposits
Postdated Cheques for Loan Repayment
Credit Life Insurance of the Chief Promoter.
SME Loan (From N10 million to N20 million):
Bank Guarantee from any acceptable Commercial Bank (Letter of Intent is required at the point of application)
Legal Mortgage on a developed landed property located in an urban area.
